6.18 Shopping Festival : another high turnover post Covid-19

6.18 Shopping Festival

The 18th of June was the 6.18 Shopping Festival in China, known as the crucial business opportunity for all e-commerce platforms, occurring from 1st of June to 18th of June.

6.18 was first created by JD.com in 2004 but the event has been spread by other major e-commerce platforms such as Tmall, Taobao, Pinduoduo…

Although Tmall’s turnover was higher in 2020 (698.2 billion yuan) than this year’s (578.5 billion RMB), the results post Covid-19 are still impressive. On the contrary, JD.com raised its total revenues (269.2 billion RMB in 2020 against 343.8 billion RMB in 2021).

Tmall campaign for 618 Shopping Festival

Tmall campaign for 6.18 Shopping Festival

Technology and Food on the rise on JD.com

According to the sales data of JD.com, this year, the high volumes of purchases were dedicated to :

Technology :

🔶 Gaming mobile phones (increased by 5 times year-on-year)

🔶 High-end notebook computers (increased by 145% year-on-year)

🔶 Giant screen TVs over 75 inches (increased by over 300% year-on-year)

🔶 Air conditioners (increased by 7.2 times year-on-year)

🔶 Intelligent noise reduction earphones (increased by 300% year-on-year)

According to JD’s big data, a total of 236 brands have sold more than 100 million yuan, including 73% of Chinese brands.

Food :

🔶 Organic food sales (increased by 315% year-on-year)

🔶 Mystery box sales (increased by 6 times year-on-year)

🔶 Pet smart products (increased by 5 times year-on-year) –> our article about Pet Economy here

🔶 Health products such as melanin, vitamins, and probiotics have increased as well

By the way, international products from all over the world have had a good showing as well. For example, transaction volume of imported products increased 10 times compared with the previous period. JD Worldwide imported gaming phones increased nearly three times and imported dry cat food increased 108%.

Strong Logistics and Supply Chain efficiency

JD.com attested that consumers in 92% of districts and counties and 84% of townships in China enjoyed the high-efficiency experience of “D-day delivery” (当日达) and “next-day delivery” (次日达). In addition to the large-scale and time-efficient service reach, this year, the pre-sale model innovation has again increased, covering more categories and more regions. 

Consumers in more than 200 cities across the country can experience it right after paying by choosing the “minutes delivery service” (分钟达) that is faster than usual. On-demand consumption has been solidified as a shopping trend in China. The experience of receiving orders in one-hour has brought the customer experience to a new level.

JD.com managed autonomous delivery vehicles

JD.com’s autonomous delivery vehicles

In the context of the rapid increase in the volume of large-scale business orders, the national average daily order volume forecast accuracy rate exceeded 95.5%. In addition, JD’s smart supply chain makes more than 400,000 supply chain smart decisions every day, including replenishment, allocation, etc…

Live Streaming was the best sales tunnel

64.5 billion RMB is the total sales of e-commerce by live streaming, led by the well-known Chinese KOL Austin Li, Viya and Cherie.

KOL launched a series of live streaming during 618 Shopping Festival

Li Jiaqi 李佳琦, Viya 薇娅 and Cherie 雪梨

On Tmall, the turnover generated via live streaming sessions in the first hour of 1st of June was the equivalent to last year’s average daily turnover.

Besides, the turnover of more than 1,700 brands exceeded the entire day of the same period last year.

Being part of big shopping festivals in China are not just about selling products, but also a big opportunity to build long-term growth. See our article about the future of retail here.

The Future Upcoming Festivals

📅 Qixi Festival : 14th of August

📅 Mid-Autumn Festival : 21st of September

📅 Single’s Day : 11th of November

How short videos became the new format for selling ?

Short videos are the new format for selling

Nowadays, according to a fast pace of life, people need brief and short information. Instead of a long and detailed written format, people prefer to watch a short and animated format

Did you know that Chinese users spent more than 25% of their phone time on short video mobile apps ? Consequently, 38.28% of leisure time was spent on mobile entertainment according to the China Good Life Survey.

In China, Douyin 抖音 (Chinese version of Tik Tok only usable in mainland China) is the leader of short videos mobile applications, followed by Kuaishou 快手.

Apart from Douyin and Kuaishou, short videos are on the rise on Wechat Channels as well. The super mobile application developed all formats of videos : short, long, live streaming sessions… 

Music, dance, lifestyle, humor, short story or advice videos are plenty for users to spend time on short videos apps. But how do brands manage to take short videos for selling ? 

Short videos are fun, creative and time-spending

Mobile applications such as Douyin and Kuaishou are based on browsing short videos endlessly. Users don’t expect to see advertising but creative content made by other users.

Some of the good ingredients to create a good video that will make people watch it to the end : Visual + Trendy music + Plot twist + People’s face.  

Brands have understood the importance of short videos and are now engaging with creators who have a large audience on Douyin to promote their products. 

Test and try products by Li Jiaqi : Mac Cosmetics

Video from Douyin @李佳琦 Austin Li

Short videos are recommended according to users’ interests

Douyin’s algorithm is made for entertaining users, consequently all of the content will be shown if the user has shown preferences to some of the categories of videos.

Douyin’s algorithm will highlight these user’s call-to-actions :

Active (likes, comments, shares, sending tips during live streaming…)

Watch-time (from the beginning to the end of the video, replay, swipe…)

Search methods (recommendation page, hashtags, music search tab…)

If a user has shown interest in a video showing shopping places, then Douyin’s algorithm would also suggest lookbook videos that could inspire the user to buy some new clothes or accessories.

Lookbook video on Douyin

Video from @曲岑兮 yitingyou

Brands are pushing ideas for collaboration with creators on Douyin : unboxing, test and try products, showing off clothes or luxury bags collection…

Watching several videos in a row with the same brand’s products will create the viewer’s desire and attract curiosity. On Douyin’s videos, users can directly shop products by clicking on the shop logo, which is usually just above the username. After arriving on the creator’s store, users could buy clothes, cosmetics products, DIY objects and other categories of products.

Short videos are great format for Millenials and + 30 years old people

Compared to mobile gaming and digital reading, short video have higher mobile user penetrations of 75.2% and the majority of China’s short-video users (which is over 70%) is between 18 and 35 years old and the majority are located in third-tier and fourth-tier cities than the top tier cities, according to China Internet Watch. 

Users of Douyin have a longer duration of the engagement. Around 30 million users opened Douyin early in the morning and browsed it late at night. 

Yet, the behavior of the users’ purchasing power is different. Chinese Z Generation people are more likely to buy instantly and are more quickly convinced of a trendy product, while those over 30 years old have a more thoughtful consumption and will take the time to learn more about the product’s details. 

But in both cases, it is profitable for the brand which is gaining notoriety. The more visible it is, the more users have the potential to turn into consumers or advise people around them about the products and brands they have seen, consequently creating word of mouth effect.

       Unboxing : Converse

Video from Douyin : @帕尔哈迪迪

How to use Weibo for brands marketing ?

Weibo for brands marketing

Instant messages, a limit of 2000 characters by posts, pictures grids, short videos, Weibo’s functionalities look similar to Twitter, used in western countries. At the beginning, Weibo was made for personal use but more and more brands are active on Weibo because companies can build databases, promote their brand image and drive traffic to their website.

According to Statista, as of the first quarter of 2021, Weibo’s monthly active users amounted to around 530 million. Weibo is not only a tool for boosting brands’ visibility, but also a tool for brands to better understand Chinese audiences and get closer to customers.

Here are the good practices of doing marketing for brands on Weibo :

Building brands’ notoriety through search function

Using search function allows the user to find posts related to keywords on the research box. By jumping on trending topics, brands’ posts will be kept under the topics related to the post’s description.

Besides, the posts can be consulted at any time and by everyone, unlike the companys’ accounts on Wechat where users have to subscribe to be aware of the latest publications. 

As for famous events like Chinese New Year, 520 Festival (as known as Valentine’s Day) or the upcoming 618 Shopping Festival (as known as the largest mid-year shopping festival in China), brands are launching presales campaigns for ongoing products or limited edition products.

Chaumet, the French luxury jewelry and watchmaking brand, has chosen as brand ambassador the famous Chinese actor and singer Zhang Yixing (Lay Zhang) for a series of love-themed jewelry.

Weibo’s account of Chaumet about luxury jewelry for 520 Festival

Content share facilities

Cross-channel is the key. When scrolling down the timeline, users can easily share a post from Weibo to Wechat. 2 options will be suggested : create a post on the user’s Wechat account (it will appear on friends’ Wechat Moments) or send to a friend by message (private traffic). After going through Wechat, the user can go back to Weibo and keep on browsing or stay on Wechat.

Creating a post on Wechat including a Weibo’s link

Creating a post on Wechat including a Weibo’s link

Sending a message to a friend on Wechat including a Weibo’s link

Sending a message to a friend on Wechat including a Weibo’s link

Weibo’s user journey highlights these types of actions :

  • Passive (scrolling down content)
  • Active (commenting and liking)
  • Reactivity (sharing on other social medias)

E-commerce integration

Through its partnership with Taobao, Weibo users can put links to Taobao store and products’ page in their posts.

Products' page links on Weibo

Video of @kakakaoo about L’Oreal lipstick on Weibo

Running campaigns

Targeting is quite precise on Weibo and the Chinese audiences’ ages vary from 14 to 60 years old. Brands can tailor campaigns in the format of display ads or Weibo search engine promotion.

Selling via live streaming 

As on Douyin, Wechat and Xiaohongshu, buying during a live streaming is one of the best time selling opportunities since live broadcasting gives the viewers the feeling of proximity and authenticity with the broadcaster. 

Live streaming on Weibo

Live streaming of jade jewelry selling