“618 Mid-year Shopping Festival” from Empowers Brands to Enter Chinese Market

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618 shopping festival

On the first day of June, the “618 Middle-year Shopping Festival” officially kicked off. Jingdong (JD.US) data shows that the order quantity at the beginning of zero is in a blowout state. In the first hour, Jingdong platform sold more than 17 million items, an increase of 83% year-on-year; and Tmall’s first hour, turnover It has exceeded 10 hours last year; Suning has more than 10 brand sales in the first hour.

“618” was founded in 2004, from the original Jingdong store celebration day, Jingdong platform exclusive e-commerce promotion festival, to the development of the whole platform to participate, although in terms of scale and Alibaba (BABA.US) “double eleven” There are gaps, but the level of platform emphasis, brand coverage, and consumer engagement are constantly deepening. In terms of national consumption, especially online consumption is still strong, on the basis of strong demand for high quality and low price goods, “618” breaks the previous “double eleven” outcrop, the two sides share the middle and end of the year, called E-commerce promotions double wall, providing consumers and brands with more choices.

The largest scale in history

This year is the third year of Tmall’s participation in 618. On May 16th, Jialuo, general manager of Alibaba’s marketing platform business unit, said that the investment scale of Tmall 618 will be aligned with the double 11 this year, which will be “the largest resource investment in history, the most brand participation, the largest scale profit” 618, so With the help of Alibaba’s increased emphasis, this year’s 618 scale is expected to achieve a huge breakthrough. Ali’s 618 related major programs include:

Leverage the strength of the team to create a “10 million explosions” to attract 300 million new customers. Last year, 618 has created 66 “10 million explosions”. This year, Tmall will invest more than 100 billion shopping subsidies in the joint brand, helping to collect the largest “magic explosion” in the history of June 1-18. Hit the CALL program.” During the period, the company will generate 10 “10 million explosions” and 100 “million explosions” every day to sprint the 100 million single-product club. At the same time, through the cost-effective new customer plan, in line with the city sinking strategy, to help brands accelerate the acquisition of customers, the target during the 618 period to bring 300 million new users to the brand business.

Power C2M, daily sales directly drain the traditional manufacturing industry. During the 618 period, the daily sales will select 100,000 pieces of products that penetrate the bottom line of the industry, directly draining the high-quality factories and traditional manufacturing and local industries such as Jiangsu, Zhejiang, Guangdong and Fujian. Pen order.

Create the first place in the first half of the year. On April 17, the mobile phone Taobao home Tmall entrance was upgraded to Tmall new products. In 2019, more than 50 million new products will be launched in Tmall, and Tmall will become the world’s largest new product launch platform. Tmall 618 will have 80% of its core brands to release new products, which will become the largest new product launching spot in China in the first half of the year. Tmall will select 1.5 million new products for the trend, creators, e-sports, pets, secondary yuan, star fans and other groups during the 618 period.

In terms of merchants, the Amoy platform merchants are very optimistic about the sales of 618 this year. From the increase in the amount of goods, the loan amount can be seen to increase significantly. According to CCTV news reports, online merchants’ disclosure data shows that the increase in the amount of loans for Amoy merchants exceeded that of last year. 11. Since April 1, the loan amount of sellers on Tmall and Taobao platforms has increased by 93% year-on-year, fresh, medical care The sales volume of large-scale sales of women’s wear, women’s wear, furniture and jewellery, etc. exceeded 100%.

Jingdong held the Jingdong 618 Global Brand Summit on May 21 and officially launched the 16th Jingdong 618 Global Mid-Autumn Shopping Festival. Jingdong also announced that this year will be the largest “618” in history. At the meeting, Jingdong said that more than 10 million people will invest in the preparatory work of Jingdong 618. More than 90% of the core brands will release millions of new products, and will jointly join the million-line stores to participate in Jingdong 618, and the marketing activities will cover 750 million. consumer.

Jingdong reached a cooperation with Douyin, Kuaishou and Sina Weibo during the “618 Middle-year Shopping Festival” and connected to the entrance of Jingdong Mall on the above platform. Jingdong platform merchants can use these talent resources to promote products and bring more diversified consumption scenes to consumers and businesses.

Douyin is the first platform that Jingdong has access to. After the technical breakthrough was reached at the end of May, Jingdong accessed the Douyin in a small program and promoted the products through the hort-video platform. After the short video sees the shared item of interest, the user can enter the Jingdong applet that accesses the vibrato to purchase.

In the Kuaishou platform, users can directly jump to Jingdong Mall to purchase through the fast hand shop. On the Sina Weibo platform, with the window function, Jingdong Mall will be fully open to Weibo users for the first time.

In addition, Jingdong also said that this year, it has continuously strengthened its own content ecological construction, and will invest 2 billion additional subsidies to support the ecological development of the alliance CPS. At the “2019 Jingdong 618 Global Brand Summit” on May 21, Jing Lei, the rotating CEO of Jingdong Retail Group, said that in the past year, the Jingdong platform new product turnover exceeded 300 billion yuan, and at this year’s 618 shopping festival, there will be 90% of core brands release new products.

To be productive, do the shopping festival

In 2009, Tmall’s “Double 11” event was first launched. It became famous in World War I. People’s enthusiasm for shopping was quickly ignited. The smashing of goods and express delivery became a hot topic in the streets. Since then, everyone in the e-commerce circle knows that “to be a performance, we will do a shopping festival”, so “318 Girls’ Day”, “Jingdong 618”, “No. 1 Shop 711”, “10.10 Overseas Purchase”, “Double 11” The “Double 12” and other festivals created for marketing purposes are endless, and you will be able to buy the end of the year from the beginning of the year.

Some insiders believe that on the one hand, due to the lengthening of the platform promotion activities and the consumption of users in advance, the purchasing power and energy of the users are diluted; on the other hand, the daily promotion activities such as “super brand day” of the e-commerce platform increase, which also makes Consumer interest in offers is declining. In the past two years, the online shopping market in cities and townships below the three-tier level has been basically developed, and it is difficult for e-commerce platforms to find new growth points. At the same time, under the influence of the overall economic environment, many consumers are beginning to realize that it is an irrational act to pre-empt goods. There was once a netizen who wrote in a circle of friends: “There was still half of the mask bought in the double 11 last year. There were still half a box of paper towels, and there were two bottles left in the shower gel. However, I didn’t want to use it again. I said nothing at this year. ”

The enthusiasm of consumers has cooled down, and the participating merchants have frequently said that “to participate in the e-commerce shopping festival is just to lose money”. Although the e-commerce platform will take out some of the funds, the merchants still subsidize the main force of the post-discount. For businesses: If you don’t participate in the event, you won’t get traffic. If you participate in the event, there will be no profit.

Many merchants were forced to get involved in “618” and “double eleven”. For the platform, this day is like a wife, the merchant does not come to the ceremony, does not give face, will not bring you to play next time. Every year, there will be a variety of “championships” on the shopping street. Everyone will find a self-styled champion according to their own advantages: I am the champion of sales, the champion of quantity, and the champion of payment of Alipay. This is completely a PR act.

The economic principle behind online shopping carnival is nothing more than price discrimination, which maximizes the profit of the merchant through different pricing of the same commodity. On the weekdays, the original price is reserved for consumers who are not sensitive to the price, and the discounted price at the time of the activity is used to attract consumers with higher price sensitivity, thereby realizing the surplus conversion of the consumer surplus to the merchant.

The reason why this method can be successful is to use the irrational demand that people are afraid of losing. Under the influence of advertising, consumers will naturally take it for granted: “If I don’t buy it today, I will return to the original price tomorrow, then I Didn’t you lose these discounts?” Then, under the effect of the herd effect, this irrational demand was pushed to a climax. However, with the passage of time, the rationality of consumers will gradually return, and they will begin to recognize the routines of the merchants, and will no longer be willing to be “cut wool”. The online shopping carnival will also cool down.

When the carnival craze recedes, not only do consumers find things that can be bought in the next five minutes, there is no need to wait three or four days or hoard one year.

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