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Lego: Near Bankruptcy to Revival
The challenge
Jack Ma launched Alibaba in 1999 but Singles Day — November 11th — was just a minor Chinese holiday for single people. In 2009, Alibaba's Tmall platform was struggling to compete with established retailers. They needed a reason for people to shop online.
The strategy
Alibaba transformed the obscure Singles Day (11/11 — four singles) into a shopping festival by offering massive discounts for one day only. The strategy was to create artificial urgency and make online shopping feel like an event worth participating in.
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Try the full case free →Key lessons (preview)
- Creating a shopping event gives consumers permission to spend they wouldn't otherwise have.
- Gamification and entertainment transform transactions into experiences worth participating in.
- Artificial urgency (one day only) is the most powerful sales tool in retail.