THE FESTIVAL THAT DEFINES MID-YEAR E-COMMERCE
Originally launched by JD.com, the 618 Festival has grown into one of China’s biggest shopping events. In 2023, it was the first major retail campaign since COVID-19 restrictions lifted. All major platforms used it to win back customers and market share.
ALIBABA AND JD FIGHT PINDUODUO ON PRICE
Both giants matched or even copied Pinduoduo’s low-price strategy: Alibaba rolled out a “10 Billion RMB Subsidy” program while JD offered even higher discounts. All players hoped to lure budget-conscious shoppers amid economic slowdown. As Fabian Sinn (GENUINE German) noted, “Encouraging consumption became a priority for government and platforms alike.”
LIVESTREAMING STARS AND GLOBAL NAMES JOIN IN
E-commerce is now inseparable from content. Platforms used livestreaming megastars and celebrities like Lionel Messi and Apple Inc. to anchor product promotions. Apple’s first-ever Taobao livestream reached 1.28 million viewers. Messi’s 20-minute stream on Taobao drew 2.5 million, briefly crashing the stream from demand.
CONTENT-COMMERCE ARMS RACE
The lines between entertainment and commerce are blurring. While Douyin and Kuaishou added dedicated shopping sections, Alibaba and JD brought in more video and influencer content. With over 50,000 new livestreamers debuting, Alibaba made a major investment in creator-driven sales.
Readthe full article here: “618in 2023: a race to cheaper prices”, technode, June 16, 2023
