88VIP membership is booming along with increased purchases on Taobao and Tmall fueled by the new exclusive benefits at this year’s 6.18 Shopping Festival! This is driving greater brand loyalty and annual spending among the members. #Taobao #Tmall #CustomerFirst #Ecommerce
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Building The Future of Retail | Learn From China | Digital Transformation Company Owner | Keynote Speaker | Author | LinkedIn Top Voice | Daily China Trends & Insights
How’s China’s second largest shopping festival, 618, going this year? 🇨🇳🛍️ While all major Chinese ecom platforms are still invested in shopping festivals, the focus is shifting. 🤪 Just sales are less appealing. More below. 🤪This year many e-commerce platforms once again extended the promotional period to a month, “enhancing user experience and consumer value” by cancelling pre-sales. Tmall's 618 sales, for instance, kicked off on May 20, and by midnight on May 21, 59 brands had already hit sales over 100 million yuan. 🛍️ On Tmall, 370,000 small merchants saw their first-day transaction volume more than double compared to last year. 🛍️ Interestingly, from May 20 to June 16, Guangzhou Customs oversaw over 52.4 million cross-border e-commerce transactions, marking a 2.6% year-on-year increase. 🛍️ This being said, for years now neither Alibaba nor JD and RED have disclosed their GMV. Here are some 618 consumption trends from the first hours of the sale. 👇 ✔️ In the first hour on May 20, Apple recorded over 1.5 billion yuan in GMV as shoppers rushed for deals. Huawei and Xiaomi also reported over RMB 100 million in GMV. ✔️ Home appliances were big, with brands like Haier, Gree, and Midea each surpassing 100 million yuan in GMV in the first hour. ✔️ Beauty brands like Proya, Lancome, L’Oreal, and Estee Lauder, each surpassed 100 million yuan in GMV within the first 30 minutes. ✔️ Over 200 luxury brands are participating in this year's 618 sales, with brands like Miu Miu and Valentino surpassing their last year's full-day sales within the first hour. What’s your take? 🤓👇 Is there a future for Chinese shopping festivals, or are they a thing of the past? — #china #ecommerce #digitalmarketing Insights via SCMP, Alizila, video via TripinChina on X ❗️ Drop me a message to work with me on marketing solutions for your team.
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Taobao and Tmall, two of the major E-commerce platforms in China, are shifting gears for the upcoming nationwide 6.18 Shopping Festival and will no longer be implementing the pre-sales model. Pre-sales was a previous model that the platforms utilised for domestic stores, allowing users to place deposits prior to the start of campaigns to guarantee product availability in the case of the product selling out. Oftentimes pre-sales would also offer additional discounts for consumers. The cancellation of this model comes as an attempt to increase competitiveness against other platforms, and prevent consumers from switching to other platforms during the pre-sales period. This is especially true as past issues with the pre-sales model have included product delivery failures, pricing inconsistencies, and unreliability of after-sales support. Replacing pre-sales, Taobao and Tmall will instead initiate two direct rounds of campaigns, starting on May 20th at 8 pm and May 31st at 8 pm. When it comes to brand strategy, the impact is likely to be minimal as we wait to see how consumers respond to the revamped promotional model. It may, however, have some impact on inventory management and also the ability for brands to warm-up the hype around the major sales period. To recap, the 6.18 Shopping Festival stands as one of China's largest online retail events, alongside Singles' Day/Double 11. Last year's event saw the cumulative GMV across E-commerce platforms of over CNY 798.7 billion (USD 111 billion). #RedFernDigital #China #Chinamarket #Ecommerce #618 #Ecommercefestival
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What is so special about 6.18? 6.18 is the second largest shopping festival in China! Many major e-commerce groups participate in the event including Alibaba’s Tmall and Taobao. With major sales, it is the perfect opportunity to buy new and trendy items. The popularity of this event has continued to increase year after year. The day initially represented the birthday of JD.com, one of the top Chinese e-commerce companies but has since expanded to be a multi-platform festival. Within the first hour, 28 brands had surpassed 100 million RMB and the number continues to grow. This has been particularly promising in the luxury field. Last year, the collective number for all e-commerce platforms was over 798.7 billion RMB. With large numbers like these, billions have been spent by Alibaba to make sure shipments and payments can be made in a timely manner as well as measures being taken to manage website traffic. With all the interest, Alibaba will have two waves of sales with the first starting on May 20 and lasting until June 20. This is a particularly successful time for international brands. According to CNN and Jing Daily, companies like Apple have already set discounts on their newest iPhone and luxury brands like Miu Miu have surpassed last year’s sales record. Nike, Lululemon, Lancôme and many more are also putting out discounts. So far some of the top selling categories include, beauty, luxury, and home goods. The popularity of live streaming has increased sales dramatically. Tmall, after partnering with 200 platforms, saw a 14 times increase in customer engagement. The use of KOLs to sell products has seen great success as many consumers listen to their favorites for the next product recommendation. These trends have caused a 3.8 times increase in the number of merchant live streams on the first day compared to last year. 6.18 continues to see increasing success year after year as digital technologies and e-commerce bring more consumers to purchase their new favorite products. #618shoppingfestival #chineseshopping #onlineshopping #ecommerce #chineseecommerce
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The how (Q3) is more important than what (Q1, Q2). Q1: "About 185 brands – including Apple, Xiaomi and Huawei – have each achieved more than US$13.8 million in gross merchandise value on Taobao and Tmall" Q2: "Some 37,000 other brands have doubled sales year on year on those platforms during the initial period of promotions, preliminary sales data show" Q3: "Alibaba Group Holding’s sales campaign for this year’s 618 shopping festival is seeing strong momentum, according to preliminary data from the firm’s Taobao and Tmall platforms, helping boost the Chinese e-commerce giant’s prospects of returning to double-digit revenue growth by 2027." https://lnkd.in/g8QCZK-d
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Jessie YuLu‘s China Talk: 📣 China’s 618 shopping festival wraps up📣 The 618 festival sales are the second-biggest annual online platform discount event after Single’s Day. The mid-year shopping event starts in early May and ends in late June. It provides an important insight into new consumption trends and serves as a barometer for the economy, supported by policies to stimulate domestic demand and purchases. This year's extended offers have dampened excitement for China’s mid-year e-commerce festival. Here are some trends from the festival: - Platforms dropped their pre-sale strategy due to the low demand. - Live streaming benefits brands by enhancing brand awareness and driving sales. - AI-driven personalization has transformed the digital shopping experience. JD.com used the CEO's avatar for the promotion. - Consumers experienced "fatigue" due to the long promotional period as their wallets were getting "exhausted." Resources: l https://lnkd.in/gJBUQPMd l https://lnkd.in/gidpXQST l https://lnkd.in/gxanK75e
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#Ecommercefestival - In China 🇨🇳 promotions for the 618 have already started. But today is the day: for peace and money! Despite the fatigue underline by Ludovic BACQUE, and the slowdown recorded in the #Ecommerce (all industries), promotions are well welcomed by customers, always. Who doesn’t like to save money? It’s interesting to see how many western brands have reduced their enthusiasm in joining these kind of events. Luxury is shifting strategies to catch and keep the #chinesecustomer.
It is 618!! 🤔 But What is Happening in One of the Biggest China's E-Commerce Festival? The Chinese e-commerce landscape seems to be facing a significant transformation. As the once-celebrated shopping festival, 618 isn't as popular as it used to be. Recently, people aren't as excited about online shopping events. This year 618 feel almost non-existent to many. Despite platforms offering deep discounts and simplified deals, the excitement just isn't there anymore. 𝐏𝐥𝐚𝐭𝐟𝐨𝐫𝐦𝐬 𝐬𝐭𝐫𝐚𝐭𝐞𝐠𝐢𝐞𝐬 𝐚𝐫𝐞 𝐮𝐧𝐝𝐞𝐫 𝐩𝐫𝐞𝐬𝐬𝐮𝐫𝐞 and we have seen JD.COM or Taobao Marketplace moving away from pre-sale mechanisms and complex discount schemes to straightforward promotions. Yet, the pursuit of "lowest prices" is exhausting both merchants and consumers. Brands are slashing prices to compete, often at the cost of their margins, while consumers are overwhelmed by the constant barrage of sales. Many merchants (especially smaller brands) are finding it increasingly difficult to participate in these massive sales events. The 𝐟𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐬𝐭𝐫𝐚𝐢𝐧 of low-margin sales, combined with the high cost of advertising and traffic acquisition, means that even significant discounts can't stimulate enough demand. Even Douyin (TikTok) have seen a decline in performance. Top influencers who once drove significant sales are now seeing 𝐫𝐞𝐝𝐮𝐜𝐞𝐝 𝐞𝐧𝐠𝐚𝐠𝐞𝐦𝐞𝐧𝐭 𝐚𝐧𝐝 𝐥𝐨𝐰𝐞𝐫 𝐬𝐚𝐥𝐞𝐬 𝐟𝐢𝐠𝐮𝐫𝐞𝐬. It seems to be an 𝐈𝐧𝐝𝐮𝐬𝐭𝐫𝐲-𝐖𝐢𝐝𝐞 𝐅𝐚𝐭𝐢𝐠𝐮𝐞. Consumers are tired of the perpetual sales, and merchants are weary of the price wars. The aggressive discounting has led to a situation where quality and service are often sacrificed, and the value of the shopping experience diminishes. Rather than continually competing in an unsustainable race to the bottom, platforms and merchants might need to 𝐫𝐞𝐜𝐨𝐧𝐬𝐢𝐝𝐞𝐫 𝐭𝐡𝐞𝐢𝐫 𝐬𝐭𝐫𝐚𝐭𝐞𝐠𝐢𝐞𝐬 𝐚𝐧𝐝 𝐟𝐨𝐜𝐮𝐬 𝐨𝐧 𝐪𝐮𝐚𝐥𝐢𝐭𝐲, 𝐜𝐮𝐬𝐭𝐨𝐦𝐞𝐫 𝐞𝐱𝐩𝐞𝐫𝐢𝐞𝐧𝐜𝐞, 𝐚𝐧𝐝 𝐮𝐧𝐢𝐪𝐮𝐞 𝐯𝐚𝐥𝐮𝐞 𝐩𝐫𝐨𝐩𝐨𝐬𝐢𝐭𝐢𝐨𝐧𝐬 (easier said than done of course...) As digital "experts", I believe it is crucial to recognize these changing dynamics and adapt to a market where consumer fatigue is growing, and relentless price competition is no longer sustainable. Does this signal the need for a strategic shift in China's e-commerce industry? --- #EcommerceTrends #ShoppingFestivals #DigitalCommerce #ConsumerBehavior #ChinaRetail #OnlineShopping #DigitalMarketing #RetailTrends #ConsumerInsights #MarketingStrategy #ChinaDigital #ChinaInsight #China
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Sales Results Revealed as 618 Shopping Festival Wraps Up 🛍️💸 The second biggest shopping festival in China, the 618 Shopping Festival, just concluded yesterday. This year's event extended longer than usual, kicking off in early May. Consumer sentiment appears to be rebounding from the pandemic-induced slowdown, with this year's festival achieving pre-COVID results and a record-breaking sales total of 798.7 billion yuan ($110.5 billion USD). 👉 Read our latest article to learn more about this year's 618 Shopping Festival: 🔗 https://lnkd.in/ecrC4-FH #618ShoppingFestival #RetailTrends #ChinaRetail #ShoppingFestival #MarketTrends
A Look at the 2024 618 Shopping Festival: Trends, Results, and Future Prospects
leafdigitalgroup.com
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A 14% increase in GMV was observed during the recent 618 shopping festival. New players in China's e-commerce arena are growing faster than the two established giants, Tmall and JD.com. Douyin saw the highest growth at 26%, followed by Pinduoduo at 18% and Kuaishou at 16%. However, these three have much smaller bases compared to Alibaba, which grew by 12%, and JD.com, which grew by 6%. As the platforms do not publish their figures, these macro data come from third parties. The reported figures align with our perception at 2 OPEN. Sellers are rightly concerned about the profit margin erosion caused by intense competition. Price remains an absolutely key variable, especially for platforms that aggressively demand at least price matching with any other platform. Brands should avoid cannibalization and channel competition, as it is a detrimental business strategy. Brands that divide online channels among various sub-distributors generally end up failing. While it’s true that consumers are price-sensitive, self-cannibalization is a grave mistake many brands continue to make. In some cases, brands boast about strict price control, but our team often finds that this is far from the truth with a simple product search. Additionally, another firm has reported a decrease in GMV, which we believe is incorrect based on the figures we can see and observe through the platforms. With the significant number of brands we manage, our data provides a more accurate picture. If you need a reliable team to handle your e-commerce in China, look no further. #ChinaEcommerce ##618ShoppingFestival #Alibaba #JDcom #Douyin #Pinduoduo #Kuaishou #2OpenChina #MarketingInChina #MarketAnalysis #ChinaMarket data from: https://lnkd.in/dzMQcwkD
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💥 Midway through the 618 promotion, Tmall is VICTORIOUS by prioritizing USER NEEDS in China's dynamic e-commerce scene. 📈 Alibaba’s focus on "user first" and "brand growth" is paying off with DOUBLE-DIGIT growth in Q1 2024. 🔥 Tmall 618: 185 brands surpass 100 million yuan; Apple hits 1.5 billion yuan in one hour. Taobao Live sees 38 live broadcasts exceeding 100 million yuan in sales. ⚡ Simplifying discounts and canceling presales resonate with users, driving explosive growth for brands. 🌟 Alibaba’s user-centric approach proves that understanding and addressing user pain points leads to remarkable success. What do you think of this development? #China #Tmall #Taobao #ECommerce #UserCentricity IT Consultis
Helping Fortune 500 & Ambitious companies with Digital Transformation in China and APAC | IT Consultis | Hiring Salesforce Consultant & Architect, Digital Transformation Consultant and many more positions
💥 As we reach the halfway mark of the highly anticipated 618 promotion, Tmall is emerging VICTORIOUS, proving that prioritizing USER NEEDS is the key to success in China's dynamic e-commerce landscape. 📈 In a landscape where platforms vie for consumer attention, Alibaba’s focus on "user first" and "brand growth" is paying off in remarkable ways. By putting users at the forefront, Taobao and Tmall are experiencing a resurgence, with GMV returning to DOUBLE-DIGIT growth in the first quarter of 2024. 🔥 Tmall 618 is setting records with 185 brands surpassing 100 million yuan in sales, and 11 brands hitting the 1 billion yuan mark. The cancellation of pre-sales hasn't dampened enthusiasm, with Apple raking in 1.5 billion yuan in just one hour on the first day. Taobao Live is also experiencing a surge, with 38 live broadcast rooms exceeding 100 million yuan in sales. ⚡What's driving this success? Understanding user pain points is crucial for success. Alibaba actively listened to user feedback and addressed their frustrations with complex pre-sale rules. 🔹 By understanding evolving consumer preferences, Tmall and Taobao made bold moves like CANCELING PRESALES to simplify the buying process and ensure timely deliveries. This user-centric approach is resonating strongly, with domestic and international brands alike witnessing explosive growth. 🔹 The platforms have also been issuing advanced coupons and SIMPLIFYING DISCOUNTS, making savings more accessible to users and merchants alike. The integration of Taobao and Tmall discounts is democratizing promotions, allowing even small Taobao merchants to thrive. 🌟 As 618 continues, Alibaba's successful “back to basics” approach underscores the power of prioritizing user needs and delivering genuine value. It's a testament to the company's enduring commitment to making commerce easier and more rewarding for everyone. What do you think of this development? Thank you 王牧 for your insightful sharing on 界面新闻. #China #Tmall #Taobao #ECommerce #UserCentricity
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