The 618 Shopping Festival, celebrated annually on June 18, has become one of China’s most significant e-commerce events. Initially launched by JD.com to commemorate its founding anniversary, 618 now spans multiple e-commerce platforms, including Tmall and Pinduoduo. This year, the festival will kick off on June 1st and run through June 18, featuring significant discounts, exclusive product launches, and extensive promotional activities.

Key Highlights of 2024

1. Technological Advancements

Platforms like JD.com have invested heavily in technology to handle the massive traffic surge during the festival. This includes advanced AI and big data analytics to predict sales and manage logistics efficiently​ (JD Corporate Blog)​.

2. Enhanced Logistics Services

Major platforms have improved logistics capabilities to ensure faster and more reliable deliveries. For example, JD.com expanded its pre-sale operations and implemented night deliveries, while Tmall and Cainiao focused on achieving half-day delivery in major cities​

3. Diverse Product Categories​

This year saw a notable rise in categories like health and wellness, sports and outdoor gear, pet products, and beauty devices. These segments showed significant growth due to changing consumer preferences post-pandemic​.

4. Livestreaming E-commerce

Livestreaming continued to be a significant driver of sales. Platforms like Douyin (the Chinese version of TikTok) and Kuaishou saw significant gross merchandise volume (GMV) increases, leveraging interactive and real-time engagement to boost sales​

Preparation Tips for International Brands

1. Understand Local Preferences

Tailor your products to meet the tastes and preferences of Chinese consumers. Categories like health supplements, beauty devices, and outdoor sports equipment are trending.

2. Leverage Local Platforms

Collaborate with major e-commerce platforms like JD.com, Tmall, and Pinduoduo to maximize visibility and reach. Consider using their advanced logistics and marketing tools to streamline operations and enhance customer experience.

3. Engage in Livestreaming

Utilize platforms like Douyin and Kuaishou for live-streaming events. This interactive format helps create a direct connection with consumers and can significantly boost sales during the festival.

4. Optimize Logistics

Ensure your logistics are efficient and capable of handling the increased demand during the festival—partner with local logistics providers to offer faster delivery options, including same-day or next-day delivery.

5. Offer Exclusive Promotions

Create special promotions and discounts tailored to the 618 festival. Limited-time offers, flash sales, and exclusive product bundles can attract more customers.

6. Focus on Customer Service

Provide excellent customer service to address any issues promptly. This includes easy return policies, quick refunds, and responsive customer support to enhance the shopping experience.By understanding the unique aspects of the 618 Shopping Festival and strategically planning your participation, international brands can significantly boost their presence and sales in the Chinese market.

China’s Queen’s Day Shopping Festival, the 38 Festival, recently captivated significant e-commerce platforms. Since mid-February, platforms like Taobao, Tmall, Jingdong, Kuaishou, and Douyin have launched investment promotion activities, heralding the start of fierce competition. With millions of consumers actively engaged, the festival has become a significant battleground for these industry giants.

Platform Strategies

Taobao Tmall introduced a novel concept, “38 Refresh Week”, focusing on spring novelties to entice shoppers. Instead of the traditional “Queen’s Day” and “Goddess’s Day” themes, this approach resonated well with users. Meanwhile, Jingdong took a different route, emphasizing low-price advantages. The platform sought to solidify its position as a leader in affordable offerings through a 10 billion subsidy plan and the “buy your double compensation” service. Kuaishou’s strategy centered around “shelf e-commerce” and direct price reductions, while Pinduoduo opted to reduce marketing efforts and concentrate on official subsidies of up to 20%.

New Trends and Market Dynamics

This year’s festival showcased a notable departure from traditional marketing tactics. Instead of burning money unthinkingly for marketing and volume, platforms focused on providing direct benefits to consumers. As a result, Taobao Tmall’s official reduction and Jingdong’s substantial subsidies resonated positively with users. This shift towards direct preferential treatment is expected to herald a new era of low-price competition in the e-commerce industry.

Empowering Women

The festival also highlighted the significant influence of female consumers, known as the ‘she economy.‘ According to Accenture, China boasts nearly 400 million female consumers aged 20 to 60, controlling a staggering 10 trillion yuan of consumer spending annually. This spending power rivals the combined retail markets of Germany, France, and the United Kingdom, making women a formidable force in the consumer landscape. Furthermore, women’s consumption trends are evolving, with a growing preference for neutral consumption and expansion into traditionally male-dominated markets such as automobiles, digital products, and games.

Trending Products and Consumer Behavior

Flowers, men’s makeup, and domestically produced cosmetics emerged as popular choices among consumers during the festival. Data from Douyin revealed that female consumers’ orders for flowers increased by over 200% year-on-year, while orders for green plants surged by 128%. Moreover, men’s makeup sets and concealer witnessed a significant order increase, with sales soaring more than 27 times compared to the previous year. The beauty economy remains a driving force behind the festival, with domestic cosmetics accounting for 60% of sales.

Future Perspectives

As the excitement surrounding Queen’s Day wanes, platforms must adopt user-centric strategies to maintain relevance. Differentiated competition and a shift towards direct low prices are expected to dominate the e-commerce landscape, catering to evolving consumer demands and preferences. With the ‘she economy’ gaining momentum, brands and businesses must pay close attention to women’s voices and preferences, ensuring that their offerings align with the changing dynamics of the consumer market.

Evolution of Double 12

Over 11 years, Double 12 has shifted from a user-merchant interaction focus to a supplementary positioning, primarily centered on Gross Merchandise Value (GMV).

Decline Factors

The festival’s decline is attributed to an overemphasis on GMV, resulting in user attention decline and oversupply, exacerbated by a slower-growing e-commerce market and frequent shopping festivals.

Strategy Shift

Taobao and Tmall’s strategy shift has positioned the year-end Good Price Festival as a replacement for Double 12, emphasizing support for small and medium-sized businesses.

Price War Intensification

Platforms, especially Alibaba, are adopting low-price strategies due to Pinduoduo’s success in affordable consumption, intensifying the price war.

Good Price Festival

The Taobao Good Price Festival, starting on December 9, enhances discount intensity, merchant scale, and product scale, focusing on year-end shopping needs and offering more choices.

Consumer Rationality

Consumer behavior has become more rational during Double 12 and the New Year Festival, with concerns about delayed Double 11 deliveries impacting enthusiasm.

Financial Burden

Extended promotions like Double 11 have overdrafted consumer psychology and finances, making merchants feel that promotions are less lucrative.

Shelf E-commerce Opportunities

Douyin and Kuaishou’s attention to shelf e-commerce signals growing opportunities for small and medium-sized businesses.

Complex Purchasing Decisions

In the mobile internet era, consumers make purchasing decisions based on comparing prices and quality across multiple platforms, opting for the best value for money.

By admin*

As the Double 12 Shopping Festival approaches, international brands entering the Chinese e-commerce landscape can ensure a successful and impactful presence by adopting strategic preparations. From optimizing inventory to crafting compelling promotions and leveraging influencer collaborations, these tips will guide brands in navigating the dynamic landscape of one of China’s most significant shopping extravaganzas.

Stock Optimization

Ensure you have sufficient inventory to meet the increased demand during the festival. Anticipate popular products and have ample stock to prevent running out of key items.

Promotion Planning

Craft enticing promotions and discounts to attract shoppers. Consider bundling offers, limited-time deals, and exclusive discounts to stand out among competitors.

Influencer Collaboration

Leverage the power of Chinese influencers (KOLs) to promote your brand—partner with influencers whose audience aligns with your target market for increased visibility and credibility.

Online Storefront Enhancement

Optimize your storefront on platforms like Tmall and JD.com. Ensure your product listings are visually appealing, informative, and easy to navigate to enhance the shopping experience

Localized Marketing

Tailor your marketing messages to resonate with Chinese consumers. Consider cultural nuances, preferences, and trends to make your brand more relatable and appealing

Mobile Optimization

Given the high mobile usage in China, ensure your online store and promotional materials are optimized for mobile devices. A seamless mobile experience is crucial for engaging Chinese consumers

Early Promotion Teasers

Generate excitement by teasing your Double 12 promotions in advance. Building anticipation can encourage potential customers to mark their calendars and be ready to shop on the festival day

Collaboration with Platforms

Work closely with the e-commerce platforms to understand their promotional opportunities and guidelines. Participate in platform-wide activities to increase your brand’s visibility.

Customer Engagement

Plan interactive activities, contests, or engagement strategies to keep your audience involved. Encourage user-generated content and reviews to build trust and credibility.

Post-Festival Follow-up

Remember post-festival activities. Follow up with customers who purchased during the Double 12 to express gratitude, gather feedback, and encourage repeat business.

By incorporating these tips into their Double 12 strategy, international brands can enhance their presence, drive sales, and create a memorable shopping experience for Chinese consumers.

Key features of the Double 12 Shopping Festival

By admin*

The Double 12 Shopping Festival is an e-commerce shopping event in China on December 12th each year. It follows a similar concept to the more well-known Singles’ Day (Double 11) but is focused on continued promotions and discounts for online shoppers.

Key features of the Double 12 Shopping Festival include:

Promotions and Discounts

Similar to Singles’ Day, major e-commerce platforms such as Alibaba’s Tmall and JD.com offer discounts and promotions on various products. These discounts may extend to multiple categories, including electronics, fashion, beauty, and more.

Online and Offline Integration

Some brands and platforms may integrate online and offline shopping experiences. This could include promotions in physical stores as well as online platforms

Post-Singles’ Day Deals

While less globally recognized than Singles’ Day, Double 12 has gained popularity in China, with various retailers and brands participating in the event.

Broader Participation

While less globally recognized than Singles’ Day, Double 12 has gained popularity in China, with various retailers and brands participating in the event.

Consumer Engagement

The festival aims to maintain consumer engagement and spending momentum through the holiday season, encouraging continued shopping enthusiasm

It’s important to note that the significance and scale of Double 12 are less massive than Singles’ Day, but they still hold relevance in the Chinese e-commerce calendar. Businesses often use this event to extend their sales season and attract consumers with additional discounts and promotions.

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