Retailers brace for Double 11

(ECNS) -- Department store operator Intime Retail (Group) Co. and a leading Chinese retailing portal Linkshop have initiated a campaign targeting the Chinese retail industry at the Linkshop Storm Hero, calling for a nationwide promotion during the November 11 (Double 11) shopping festival.

Intime's 49 department stores and shopping centers will participate in the shopping campaign themed "China Shopping Festival" from November 11 to 16.

Enterprises including Rainbow and Ginza Mall have confirmed to join in as co-initiators, and the event is expected to attract the participation of over 100 large and medium-sized retailers across the country.

"We used to be very antagonistic against e-commerce, but we've changed our mind now. Retailers with brick and mortar stores must innovate and keep abreast with the times, so we decide to cooperate with Alibaba to build our own e-commerce business", Chen Xiaodong, CEO of Intime, explained his innovative thinking.

Intime said that the festival will integrate online and offline activities, and Alibaba will provide special platforms for certain domestic department stores during the shopping season.

However, most retailers take Joint Operation as a move to compete with e-commerce during Double 11 and counter its long-year impact.

According to Intime, following the e-commerce's success with Double 11, retailers begin to set their eyes on shopping festivals too. Public information shows that the Double 11 revenues of Alibaba's Tmall have grown from less than 100 million yuan ($16.35 million) in 2009 to 35 billion yuan ($5.72 billion) last year. This gives retailers high hopes for the "China Shopping Festival". 

Experts said that the success of Double 11 is largely attributed to low prices, which are also the key to the success of the "China Shopping Festival" this time.

According to some retailers, unlike online stores, they bear high rent and labor costs, which are rising year by year. Also, to ensure quality, entity stores usually sell brand-name goods at high prices, although the price is often 10 times as high as the cost of making the goods. If suppliers and brand holders are willing to lower their prices, retailers are able to compete with online stores.

"Be it e-commerce or entity retailer, Double 11 is just a platform. What's fundamental is still the essence of commerce. We hope to see more retailers displaying their characteristics in price, service and experience, and bring true values to customers," said Pang Xiaowei, senior retail expert and chairman of Linkshop.