6.18 shopping festival breaks sales records

Date : 20 June 2019

JD.com and Alibaba reported record breaking results for the 18-day campaign, with sales value up by +26%YoY.

The festival has evolved to be a major midyear ecommerce event

6.18 shopping festival, created by JD.com, now joined by Alibaba, has become a midyear event that can match the scale of the 11.11 global shopping festival.

The total sales transaction reached a new high this year of US$29.2bn, up by +26%YoY.  Around 200,000 brands took part and more than 110 brands each generated sales in excess of CYN100mn (US$14.5mn).

There are four key learnings from this year’s event, which are summarised below.

Less developed regions becoming the new growth engine

There has been a steadily rising demand from consumers in lower tier cities for quality products. With an increase in discretionary income, consumers in less developed areas are quickly becoming a main consumption engine and really drove this year’s 6.18 festival:

  • Volume growth was twice as high in lower tier cities than the overall growth on JD.com
  • Percentage of new users from lower tier cities was also much higher than the percentage of new users overall
  • 48% of the products newly launched on Tmall during the event were purchased by customers in less developed areas

Innovative approaches to widen reach and build engagement

This year’s event saw an array of innovative ways to reach customers and build engagement. The highlights are:

  • Social media played a key role: Two marketing campaigns had more than 100 million participants, all involving sharing on social platforms
  • Livestream to promote brands: Taobao’s livestreaming was an effective and important channel to reach shoppers. With hosts making recommendations for “must-buy” products, Taobao livestreaming helped generate more than CYN13bn sales. The number of livestreaming sessions hosted by brands increased by more than 120% vs. last year
  • Direct manufacturer-to-consumer model: Taobao’s Daily Deals, a channel which allows consumers to ordered customized products straight from the manufacturers, generated over 420 million orders

Group buying was a major push

Alibaba’s group buying platform Juhuasuan drew 300 million new customers. The platform has been repositioned recently for those looking for quality goods at competitive prices. Group buying via WeChat was also available in Hong Kong during this year’s event.

Technology used to meet customer expectations

Technology played a key role during the event to improve customer experience and exceed their expectations. JD.com’s smart customer service robot dealt with more than 32 million inquires, freeing up human services for more complicated inquires. 91% of orders from JD.com’s fulfilment centres were delivered on the same day or next day.

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