China is warming up for the largest shopping festival since the coronavirus outbreak, the mid-year 618 Shopping Festival.
Taobao/Tmall 618 2020
On May 19, Tmall announced that during the period of 618, Tmall will, together with many local governments and brands, issue the largest scale of cash consumption coupons and subsidies this year, with an estimated amount of more than 10 billion yuan.
Chinese cities have been issuing billions worth of e-coupons to stimulate consumption.
According to Tmall, more than 100,000 brands have signed up for this year’s Tmall 618, double the number last year.
In addition, more than 10 million products will offer discounts in this year’s Tmall 618, which is in line with last year’s Tmall Double 11. All these figures have broken the historical record of Tmall 618.
In this year’s Tmall 618, Alibaba took “consumption voucher” as a new way of “festival making”, leading the national consumption recovery, promoting the release of China’s domestic demand potential, and bringing the biggest growth opportunity for the brand in the first half of this year.
Tmall said that the cash consumption coupons and subsidies issued by Tmall 618 will cover the broadest population ever. Besides, the conditions for using cash vouchers and subsidies will also be the most relaxed this year.
Tmall 618 presales will start from 0:00 on May 25, with official sales starting on June 1 until June 20, 2020.
The epidemic has affected all aspects of society, and businesses have also suffered from different degrees of damage. They are looking forward to “a key battle”, either to turn the tide or to ensure growth.
Tmall 618 is such an opportunity. According to the analysis of the insiders, the biggest wave of consumption subsidy will come in Tmall 618 after the epidemic enters the stage of normalization prevention and control.
More than 100,000 brands have signed up for this year’s Tmall 618, double that of last year’s 618. More than 10 million items have been discounted to participate, which is in line with last year’s Double 11.
Affected by the epidemic, since February of this year, a large number of offline stores have launched stores on Tmall, including IKEA, Tesla, and etc.
To many merchants in China, previously participating in the 618 promotion was a growth engine; but, now it’s more “life saving”.
Update (May 27, 2020): In the first hour of Tmall 618 pre-sale, the total transactions increased by 515% year on year. Within the first two hours of the pre-sale, the transactions of several brands including Lancome and L’Oreal exceeded 100 million yuan. Subscribe to get more timely insights.
Update (June 1, 2020): At the opening, an hour and 29 minutes of Tmall 618, the total transactions referred by Taobao Live reached 2 billion yuan (US$280 million), far more than that of the same period last year.
Since the launch of Tmall 618’s pre-sale on May 25, the number of live shows on Taobao has exceeded 1.4 million.
Jingdong (JD) 618 2020
This is the 17th year for JD.com to hold its 618 Grand Promotion. JD will provide RMB 10 billion yuan in subsidies, hundreds of billions of discounts, and 10 billion yuan consumption coupons during the JD 618 event this year, announced on 25 May.
This year’s 618 is the sales promotion with the largest amount of discounts ever with most new product launches. Among the many discounts and promotions offered, JD.com will provide over 200 million units at 50% discount and sell over 200 million units of new products.
JD.com will also help more than 150 brands to sell over RMB 100 million in products through innovative empowerment initiatives, subsidy support and other measures, and help more than 100,000 small and medium-sized brands and merchants to double their transactions.
JD will host over 300,000 key live streaming sessions during this year’s 618. It will also work with partners including Kuaishou, Douyin (TikTok), Wesee, Bilibili, Huya, Douyu, and others.
JD will invite top executives from brands such as Huawei, Honor, and Haier to interact with consumers directly, offering big discounts. JD’s executives and sales managers will also join JD Live.
JD Live will invite more than 100 civil servants, such as mayors, county heads, and directors of commerce to act as live streaming anchors to promote local agricultural products to help farmers and industries affected by COVID-19.
Over 40 brands have created over 200 special production lines to produce over 1,000 exclusive products.
For example, Dyson will offer 70% of its Dyson Airwrap inventory to JD during 618. Some other promotions include a 60-inch 4K TV for less than RMB 2,000 yuan, a 55-inch 4K smart TV for RMB 1399 yuan, a Panasonic dishwasher for RMB 1899 yuan, and a new Midea air circulator for RMB 459 yuan – prices are significantly lower than usual.
JD has upgraded its service during 618 so that customers can enjoy a 30-day price protection policy for home appliances bought on JD’s first-party platform, and the option to replace a new home appliance with a quality problem within 180 days.
JD will also provide integrated delivery and installation service for TVs, and fast installation service for air conditioners.
JD will also offer RMB 300-600 yuan subsidies for people who trade in old air conditioners for new ones. It will provide a pre-sale video service to help guide consumers in the purchase of home appliances.
In addition, offline stores JD’s E-Space will participate in a 24-hour promotion on June 18th, providing customers with subsidies and discounts. JD’s over 12,000 home appliance experience stores will leverage livestreaming for marketing promotion, covering Hebei, Henan, Hunan and Guangdong provinces.
Update (June 1, 2020): JD 618 started at 0:00 on June 1. According to JD, in the first hour, the transactions of Apple products were three times of that of the same period last year; luxury goods achieved a 400% growth and completing full day sales last year.