China International Capital Corporation (CICC) has released a report highlighting that Double 11 presents advantages for e-commerce in terms of consumer loyalty, promotional intensity, and shopping experience. Platforms are actively cultivating consumer habits for instant retail and cross-selling in e-commerce. Double 11 serves as a crucial window for observing flash sales, the cultivation of instant retail usage habits, and the recognition of major consumption platforms. The performance of instant retail and takeout during Double 11, along with cross-selling dynamics, may become essential indicators for assessing future market patterns.
Since the beginning of this year, Alibaba has made significant advancements in integrating AI with e-commerce. The enhancement of AI capabilities and its close coupling with e-commerce is expected to reduce merchant costs, improve matching efficiency, and enhance the consumer experience. Key insights from CICC include the following:
Extended Promotion Duration and Increased Investments: The 2025 Double 11 activities have begun earlier, with Tmall starting presales on October 15. JD.com (京东集团-SW) and Douyin commenced official sales on October 9, while Pinduoduo (PDD.US) kicked off its Double 11 events on October 16. Kuaishou (快手-W) initiated mall presales on October 7. Most major platforms, other than Pinduoduo, have started their Double 11 promotions in advance.
In terms of promotional intensity, Alibaba (阿里巴巴) announced an investment of 50 billion yuan in consumer purchase vouchers for users, expanding the offerings of 88VIP vouchers, live stream red packets, and consumer coupons compared to the same period last year. JD.com has introduced eight major surprise days, combining direct discounts with official vouchers. Douyin offers consumers an easy and affordable experience through initiatives like “instant reductions,” consumption vouchers, and special supplement offers. Pinduoduo focuses on subsidies, cross-store discounts, and official promotional coupons.
Attention is placed on the progress of instant retail and takeout during Double 11. Both Alibaba and JD.com will include instant retail and takeout in their Double 11 activities. Alibaba has seen participation from more dining, travel, and entertainment companies for this year's Double 11. Flash sales will participate in Double 11 promotions for the first time, with 400,000 brand stores already connected to Taobao Flash Sales. JD.com will collaborate with over 3 million dining, instant retail, and travel merchants for its 11.11 event.
The Double 11 period is crucial for observing consumer behavior, promotional intensity, and shopping experiences. The performance of instant retail and takeout, along with cross-selling strategies, may indicate the subsequent market dynamics.
AI Empowerment Enhancing Consumer Convenience and Merchant Efficiency: This year, Alibaba has made several advancements in AI and e-commerce integration, including: 1) applying large-scale models across search, recommendation, and advertising processes to enhance matching efficiency within a database of 2 billion products; 2) using AI to assist merchants in store operations, content creation, marketing, and customer service, thus helping reduce costs and improve efficiency; 3) launching guide products such as Shop Now, AI Universal Search, AI Assistant, AI Virtual Try-on, and AI Lists during Double 11. The enhancement of AI capabilities closely integrated with e-commerce is expected to lower merchant costs, improve matching efficiency, and enhance consumer experiences.
Risk factors include macroeconomic uncertainties, intensified industry competition, and regulatory policy risks.