What is 618?
- 618 is the second largest and most important Shopping Festival in China.
- Every year from June 1st till June 18th , China’s e-commerce landscape is filled with large-scale promotional activities and discounts on the hottest products of the moment.
Why June 18th (618) became a Shopping Festival?
June 18th is the anniversary of JD.com (京东) one of the Top 2 biggest e-commerce company in China.
The company was founded by Liu Qiangdong on June 18th , 1998, and its retail platform went online in 2004.
Over the past 10 years, Jing Dong (JD.com) has put a lot of effort into creating and promoting commercial campaigns with unmissable discounts on its best-selling products, in order to create an “emotional attachment ”in the hearts of consumers. So every year during the month of June (until the 18th ), people in China get excited and start planning their purchases.
Soon enough other Chinese e-commerce giants (Alibaba, Tmall, Secoo) also started their own campaigns during this period, so much so that the 18th of June became one the biggest Shopping Festivals of the year.
What sells the most during 618?
According to the data of Jingdong, the top five categories of orders placed by Jingdong on June 18th, 2020, were:
Smartphones, air conditioners, flat-panel TVs, refrigerators and washing machines.
The top five brands in sales were:
Midea, Apple, Haier, Gree and Xiaomi.
Why is 618 a golden opportunity for international companies ?
- 618 Shopping Festival is a prime opportunity for international brands to get a glimpse into the biggest market in the world and prepare to experience the incredible buying power of the Chinese middle class.
- International travel to China continues to be restricted for people but not for products. After one of the most challenging years in recent history, 618 offers a way to bring the essence of your country to the Chinese consumers. For foreign brands, 618 is a great chance to understand what the Chinese market can mean for them in the long term.
618 Shopping Festival and the Fashion Industry in China
Companies such as florists, chocolate brands, travel agencies, jewelry, cosmetics & fashion brand have used this online phenomenon and turned it into an efficient marketing strategy to engage with Chinese consumers. At the same time, with the popularity of e-commerce, many people choose to buy their Valentine’s Day gift online to express their feelings and hope for the best.
The fashion industry in China has been thriving for the past 10 years. And with the rapid process of urbanization, the purchasing power of the population is constantly growing, thus making China an ideal market for international fashion brands.
In 2020 China’s domestic retail sales suffered a huge hit. However, in the month of June, thanks to the three-week period shopping festival, known as 618, many brands were able to offset their losses amassed during lockdown. Fashion and luxury brands are no exception.
Despite the global health emergency, JD’s 618 performance in the luxury category has not declined compared to previous years. During the first hour of the event, the sales of luxury brands grew by 400 percent, respecting the trend of daily sales growth of 100 percent each year. Last year, Delvaux and Prada stood out among the top performing luxury brands, and the ready-to-wear, footwear and jewelry categories showed the most growth.