(Yicai) Oct. 22 -- The Chinese e-commerce market is expected to grow 15 percent to 16 percent for the Double 11 shopping festival this year, according to the co-founder and chief executive officer of Asian digital marketing agency WPIC Marketing + Technologies.

"China is the largest e-commerce market in the world by far," Jacob Cooke told Yicai in an interview. "We think it's still going to grow this year, around 15 percent to 16 percent for Singles’ Day."

The Double 11 shopping gala, also known as Singles' Day, is a Chinese shopping gala held on Nov. 11. This year, it will last nearly a month, from Oct. 14 to Nov. 11, with major e-commerce sites, such as Tmall and JD.Com, offering incredible discounts on a large variety of products.

The extended period benefits merchants and consumers for several reasons, including more inventory, more opportunities, and more time for livestreamers, Cooke believes. "Having a more spread-out time frame makes it much easier to operate under these conditions, rather than trying to accomplish everything in just a few days."

However, there are also some disadvantages, such as fiercer competition and fewer advertisements because of steep price increases, Cooke noted.

"Additionally, the new return policy that's been announced is a great promotion," Cooke said about the new returnless refund policy introduced by Alibaba. "This is one of the most optimistic trends we've seen in a while, as people believe they can actually achieve decent profits," he added.

"Over the years, we've witnessed incredible growth, and now we're entering a phase of more manageable growth," according to Cooke. "This year, we're particularly excited because there's less pressure on larger international brands to discount their pricing the way they have in the past."

Strong Demand

Contrary to concerns about weak consumption in China, Cooke said he believes there is robust demand for products during the Double 11 shopping festival period.

"Some brands are definitely down, but these are the ones that really aren't adapting," Cooke explained. "Then you look at other brands that are focused on a healthier lifestyle.

"Using Lululemon as an example, they are opening up more stores in China than in any other market in the world," Cooke noted. "Nike is also record-setting, so there are some brands that are doing incredibly well."

China's beauty, personal care, fashion, nutraceutical, outdoor, sport, pet, mother-baby, and homeware segments are experiencing enormous growth, mainly because of the steady rise of the middle class and evolving consumption patterns, which are shaped by new lifestyle trends, aspirations, and needs, WPIC said in a recent research report.

"This consumption market is changing," Cooke warned. "It's not growing at 30 percent year-over-year like it was in previous years, even just four years ago. But if you're not happy with 15 to 16 percent growth in your e-commerce stories, I don't know how to please you at that point.

"If you don't have an opportunity here, I don't know what to say," Cooke pointed out. "You're sitting in a USD4 trillion-plus consumption market and not being able to find an opportunity," he added, explaining that if global brands stick to the trends and understand how consumers are emerging, they are going to do really well.

Harnessing AI

WPIC has been at the forefront of integrating artificial intelligence into its operations to enhance efficiency and reach. Cooke highlighted the company's two key AI applications during his interview with Yicai.

"The first is predictive analytics, backed by our extensive database of millions of transactions accumulated over the years," Cooke noted. "The second is generative AI."

With generative AI, WPIC has been able to clone its top-performing streamer and then use her avatar to answer questions in real-time and broadcast for up to 300 hours a day, significantly increasing her reach, Cooke explained.

However, Cooke warned that despite high efficiency and creation, the success of generative AI was built upon the expertise of WPIC's e-commerce staff.

Beyond China

"China is a tough market but also a highly modern one," Cooke said. "Competition is generally good, as it keeps people on their toes."

Major global retailers like Walmart are sending executives to China to study its advanced e-commerce ecosystem, bringing valuable insights back to their home markets, Cooke noted.

China's e-commerce is increasingly influencing global markets. Alibaba Group Holding's Lazada and Tencent Holdings' Shopee have reached Southeast Asian consumers, while Baidu-backed Coupang is expanding in South Korea. Temu, the overseas e-commerce platform of Pinduoduo, is becoming increasingly popular in the United States and Japan.

"They are using AI and general programs," Cooke pointed out. "They have a very interesting way of working with their suppliers, and they're, quite frankly, leagues ahead."

China's robust infrastructure and favorable trade policies have made the country an ideal base for brands looking to expand across Asia. Through regional economic cooperation agreements, incredible logistics networks, and free trade zones, China offers unparalleled advantages, Cooke explained. WPIC has also capitalized on this trend, assisting Chinese clients in expanding their presence in Japan.

When asked whether WPIC has any plans to expand to other areas, such as the Middle East, Cooked said that it is happy with its Chinese, Japanese, South Korean, and Southeast Asian businesses, as the company's focus is to improve its presence in existing markets.

Editor: Futura Costaglione