Analysis of Taobao Single’s Day Shopping Festival from the Perspective of Managerial Economics

Abstract

With the rapid development of e-commerce, the Internet has affected people's lifestyle habits and shopping methods. In recent years, online shopping has gradually developed into the main shopping channel in people's lives. Various online sales competitions are becoming more and more fierce. In various online marketing, the phenomenon of Taobao Single’s Day shopping festival has attracted widespread attention. The scale of Alibaba's Single’s Day shopping festival is huge about three times the size of its western counterpart’s Black Friday. Since its inception in 2009, it has been playing a pivotal role in (re-)shaping the retail landscape in China. [1]From the perspective of managerial economics, this article analyzes the phenomenon of Taobao Single's Day shopping festival. In addition, the article analyzing the phenomenon from consumer preferences, price elasticity and price discrimination, it also analyzes the influence of externalities on this phenomenon, explains the reasons for the online retail frenzy ‘Double Eleven’ , and better grasps the changes in China's online shopping economy. It further elaborates the importance of management economics for modern enterprise managers in today's increasingly competitive situation.