How Did The Boss Get Mad When "Double Eleven" Came?

"Double eleven" is coming. Do you know how mad the boss is?

The annual "double eleven" Carnival is coming. This is from Alibaba and Jingdong.

The time for Chinese consumption to explode is gradually extending from 24 hours of shopping to a feast for several days.

In recent days, as soon as November entered, the walls of Beijing subway light boxes and pfer stations were occupied by promotional advertisements of major electric providers, which reminded people to prepare for the coming double eleven.

They will also push messages to mobile phone users at different times to remind them to see if there are any discount items on the client side.

At the end of October, Jingdong mall said it did not want to limit sales to November 11th, deliberately squeezing consumers' shopping rhythm and creating a sense of urgency, but by promoting sales promotion time to enhance consumption experience.

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In addition to extending the promotion time of the electronic commerce platform, the ant financial service product of ant company, the ant company, has also temporarily increased the consumption quota for female users and further stimulated consumption.

On the 3 day, the CPC Central Committee's proposal for formulating the thirteenth five year plan for national economic and social development proposed that we should focus on expanding the consumption of residents, guiding consumption towards the direction of intelligence, green, health and safety, and promoting consumption structure upgrading with the emphasis on expanding service consumption.

"The share of consumption in GDP has risen gradually in recent years, and the rebalancing of the economy has begun to take place."

Wang Tao, chief economist of China UBS group, said: "because of the obvious deceleration of investment in real estate adjustment and overcapacity, the relative proportion of consumption has increased. In addition, a series of policies of the government, including strengthening social security system, reducing taxes and fees by small and micro enterprises, and supporting the relatively stable growth of consumption, have been supported by the minimum wage policy."

China's consumption era seems to have arrived.

A recent research report by Goldman Sachs shows that the generation born after 1980 is entering the most vigorous period of their consumption demand in their lifetime. The consumption preference of the younger generation is obviously different from that of the previous generation, which will help to promote the growth of the optional consumer goods besides the necessities of life in the Chinese market.

According to Goldman Sachs, China now has nearly 150 million middle class, with an annual per capita income of US $11 thousand.

In addition, China has 230 million blue collar workers and urban workers, with an average annual income of nearly $6000 per person.

These two groups will become the main force to drive China's consumption growth in the future.

The report also shows that half of the current Chinese consumers' income is concentrated on necessities, but with the increase of income, the consumption of pleasure consumption will expand, and entertainment, information technology, medical and health industries will have a better growth prospects.

Although the future consumption of residents will play a major role in China's economic growth has been a consensus, but some analysts have pointed out that the pace of China's economic rebalancing may not be as fast as people expected.

Lu Wenzheng, senior director and Analysis Manager of standard & Poor's enterprise rating, pointed out that

There has been a significant differentiation in different industries in China, and industries related to consumption are obviously better than those in industries and resources.

However, the capital expenditure and refinancing capabilities of these enterprises have not been significantly weakened, nor has the growth rate slowed down the pace of overcapacity.

"The government and banks are taking measures to ease the risks of economic slowdown, so although the trend of economic pformation to consumption is already clear, the process of change will be relatively slow."

Lu Wenzheng said.

Besides, further enhancing the purchasing power of Chinese consumers depends on the sustained growth of residents' income.

The communiqu of the fifth plenary session, which has just been released, set clear goals for this. By 2020, the gross domestic product and the per capita income of urban and rural residents have doubled in 2010.

"Increasing labour productivity and increasing employment can ensure the growth of income and provide long-term support for consumption."

Wang Tao said.

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Companies are beginning to realize that it is not surprising that only eleven days of consumption are blowout.

After the end of the two eleven, Alibaba, Jingdong and a number of vertical e-commerce providers will also create a shopping Carnival like double eleven, such as return sales promotion, mid year promotion and so on, from the beginning of the year to the end of the year to stimulate consumers' enthusiasm for buying.