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By
Fibre2Fashion
Published
Aug 13, 2018
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Online shopping festivals beneficial for retailers: report

By
Fibre2Fashion
Published
Aug 13, 2018

Internet giants Amazon, Alibaba and JD.com are reaping the rewards of, and facing the challenges created by, the success of their respective online shopping festivals Prime Day, Singles’ Day and 618, as per a recent report. They also impact the participating brands and third-party retailers, due to the traffic generated by consumers hunting for bargains.



The online shopping festivals represent a huge opportunity both for participating brands and retailers, as well as for competing retailers, says a report by Coresight Research, formerly Fung Global Retail & Technology.

The report adds that for participating brands and retailers, setting up a partnership with the event organiser—whether it be Amazon, Alibaba or JD.com—in preparation for the shopping festival is crucial to maximise visibility and conversion. Retailers also need to be ready to accommodate the extra traffic generated during the shopping festival by investing in their IT and logistics infrastructure.

“During the Big Three’s online shopping festivals, consumers are encouraged to browse online for deals, compare prices and look for product information on search engines. This increased level of consumer activity generates online traffic that brands and retailers can use to their advantage. Of course, those retailers and brands that jump on the shopping festival bandwagon through direct participation increase the likelihood of falling within consumers’ shopping radar,” noted the report.

Retailers that do not participate directly in the shopping festivals, but run concurrent promotions, also see these events as a huge opportunity, as per the Coresight Research report. 

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