How is this year’s 618 different for brands? Initial pre-sales results

The 618 festival, initiated by JD.com, remains China’s second-largest online shopping event after Alibaba’s Singles’ Day (11.11). In the first hour of this year’s Tmall 618 event, 28 brands surpassed 100 million RMB ($13.8 million) in sales. Luxury brands like Miu Miu, Valentino, and Marni are already showing promising figures. Last year, major e-commerce platforms including Tmall, JD.com, Douyin, and Pinduoduo collectively recorded over $111 billion (798.7 billion RMB) in gross merchandise volume (GMV) during 618, according to data analytics platform Syntun. The 2024 festival is already underway on many platforms. Xiaohongshu’s initial 618 shopping festival pre-sale report, released on May 21, shows a significant surge on the first day, signaling optimism in Chinese consumption. The number of livestreaming orders on Xiaohongshu increased by 8.2 times compared to the same period last year. Meanwhile, the gross merchandise value (GMV) of livestream transactions on the platform was six times higher than last year, with the number of users purchasing through livestreams increasing by 7.4 times. Taobao and JD.com change the game for 618 Chinese e-commerce platforms are switching things up, however, by eliminating their pre-sale period and shifting to shorter spot sales (which are more like flash sales). Starting on May 31, JD.com’s 618 will start with spot sales, followed by dedicated sessions, peak periods, and return sessions. Similarly, Taobao and Tmall have extended the 618 event, with the first spot sale wave running from May 21 to May 28. The second wave will start from 8 p.m. on May 31 until June 20, with identical discounts for both waves. For consumers, the biggest change in this 618 is the much shorter cycle to complete purchases, making the process simpler. Previously, both Taobao and JD.com began with a pre-sale period, where consumers could put down a deposit and make their final payments about a week later, issuing a large number of vouchers between these periods to build momentum. This change in strategy highlights timed discounts and enhances the shopping experience, responding to Chinese consumers’ increasing demand for low prices and competitive services in today’s uncertain economy. Lessons from last year Certain sectors showed remarkable growth in 2023, making them ones to watch this year. Last year, Tmall Luxury Pavilion reported that jewelry sales via livestream were 10 times higher during the first four hours of 618 compared to 2022. According to Alizila, short videos by influencers rose by 200% year-over-year, and the number of participating merchants increased by 55% in 2023. Additionally, the number of Taobao content creators starting livestreams increased by 139% in 2023 compared to 2022, doubling viewing time on the app. Taobao Live also hosted 490 livestreams and generated over $1.39 billion (10 billion RMB). With China’s livestream e-commerce trend growing, this figure is expected to increase further in 2024. Moreover, luxury brands like Bulgari, Tiffany & Co., and Givenchy saw their transaction volumes triple on Taobao. It would be unsurprising if more luxury brands followed suit this year. In 2023, despite Alibaba’s Tmall emerging as the top-earning platform for 618, livestreaming platforms Douyin and Kuaishou experienced significant growth. To maintain its top position, Tmall reportedly invested an additional 15 billion RMB ($2 billion) in red pockets this year, on top of the discounts and official reductions. Shoppers weren’t the only ones benefiting; merchants also received a huge boon. Tmall upgraded its cooperation with over 200 platforms, including Tencent Ads, Zhihu, and Bilibili, to enhance merchants’ customer acquisition capabilities across the net. As a result, the number of visits to the event increased 14 times compared to last year’s 618. Low or high consumer confidence this 618? As one of the biggest shopping festivals, 618 is often regarded as a solid barometer of Chinese consumer confidence as well as shifting preferences. While it’s still early to come to a conclusion, Tmall’s sales figures offer a sneak peek at where consumers are putting their money. As mentioned above, the first hour of Tmall’s 618 sales saw 28 brands surpass 100 million RMB ($13.8 million) in transactions. Apple alone achieved over 1.5 billion RMB ($200 million) in sales in the first hour, while other tech giants like Huawei, Xiaomi, Vivo, Lenovo, and Honor also quickly surpassed 100 million RMB ($13.8 million). Regarding beauty, another sweet spot for shopping carnivals, 11 brands surpassed 100 million RMB ($13.8 million) in GMV in the first four hours, with Proya exceeding 470 million RMB ($65 million). Home decor and home appliances also boomed, with 23 brands, including Dyson, Haier, Hisense, Xiaomi, Lin’s Home, and QuanU, surpassing 100 million RMB ($13.8 million) in sales within the first four hours. Interestingly, the livestreaming GMV of liquors surged 1300% year-over-year. Notably, luxury brands such as Miu Miu, Valentino, Marni, and Lemaire surpassed their entire day’s sales from last year within just one hour, showcasing consumer appetite for luxury even during big bargain festivals. Meanwhile, Xiaohongshu’s initial data highlights merchants’ optimism about consumer spending and their increasing willingness to experiment with new channels to reach a broader audience. The lifestyle platform, in particular, boasts wealthy shoppers from Tier 1 and 2 cities who pursue a higher quality of life and have higher price acceptance. Notably, merchants’ direct live broadcasts have achieved rapid growth. The number of self-operated broadcasts by brands on the first day was 3.8 times higher than that of the same period last year, and the GMV was also 4.2 times higher. Brands’ self-operated livestreams have become the strongest growth engine for merchants. It is worth noting that interest-driven commerce, whereby videos include direct links to purchase, can significantly build momentum during these shopping sprees. Shoppers have saved up for the big event and are sourcing the best products and deals recommended by KOLs and KOCs. Authenticity and simpler rules are key JD.com and Taobao's discontinuation of pre-sales marks the conclusion of a decade-long era characterized by gimmicks. During this period, consumers faced challenges in calculating coupons and discounts, and dealt with fluctuating product prices on a daily basis. Clear rules and a shopping experience centered on consumer rights and interests are crucial for winning shoppers in the intense competition among platforms. Xiaohongshu's “Simple Livestreaming Initiative” promotes sincere communication between vendors and users, prioritizing honesty to provide shoppers with an authentic in-store experience during live broadcasts — where they can hear genuine words, see real products, and purchase what truly appeals to them.

Sectors

Insights

Company

How is this year’s 618 different for brands? Initial pre-sales results