You may know Uniqlo was the first brand to cross the 100 million RMB mark on Single's Day - in less than one minute.
What you may not know is how Uniqlo was also able siphon Alibaba's huge third-party platform's traffic to Uniqlo's own offline platform: their 500 stores.
Single's Day, the one-day shopping extravaganza on e-commerce giant Alibaba, is the biggest shopping event globally. Started as an obscure anti-Valentine celebration, now Single's Day revenue is twice the total of Amazon Prime Day, Black Friday and Cyber Monday together in the US.
It is the most important day for many retail brands in the whole year. For many brands, the day makes up for more than half of their sales in the year.
Why did we drive traffic to Uniqlo offline stores on the biggest e-commerce day?
First, while the Alibaba ecosystem drives huge volumes - it's hugely competitive and cluttered. The antithesis of the preferred Uniqlo experience.
Second, Single's Day consumers in particular are bargain hunters primarily. Thin margins combined with high customer acquisition costs inside Alibaba ecosystem.
Third, owning the direct customer relationship is essential to Uniqlo - and in their offline stores they are able to deliver a truly value-added customer experience.
By combining both offline and online purchase data, we were able to identify multiple methods to bring Uniqlo's Alibaba shoppers to their offline stores.
Our strategy was three-fold:
1) Analyzing which product lines consumers buy offline.
2) Uniqlo identified all online shoppers that had added items to their shopping carts, but not yet completed a purchase. And we offered them offline coupons.
3) Providing additional in store services.
We combined years of consumer insights of Single's Day shopping, category understand, location data and purchase behavior of this Single's Day, segmented consumers and pushed relevant messages and creatives to different audiences, all to maximize traffic to the 500 stores Uniqlo has all over China.
First, we looked at past years' Single's Day performances, and understood which categories are least likely to be purchased during Single's Day online. We found out high price, low discount items, such as down jackets and vests, were added to carts but dropped off the most by consumers.
We then looked at Uniqlo's sales data, and identified the top selling categories and product lines in-store for Uniqlo.
Combing these two sources, we were able to identify 5 top product lines to target.
We designed unique creatives featuring different product lines. In the creative, we offered coupons and put "lower in-store prices" in the ad copy.
Then, we targeted these messages to all the consumers with these 5 product lines in their shopping cart this Single's Day, as well as those who have browsed similar offerings from competitors.
If the consumers were close to Uniqlo stores, the coupon value was even higher to provide a bigger incentive for consumers to visit.
In store, we provided value-added services such as smart shop assistants, alternate service and speed checkout.