JD, Chinese 2nd e-commerce giant, made 29B$ of sales for “618” shopping festival “
China’s consumer market is still showing signs of life despite a slowing economy since retail giant JD, racked up a record RMB 201.5 billion (around $29.2 billion) in sales from 2019 June 1st to 18th. A 26.6% increase from last year, driven by growth in various categories from consumer goods, electronics, fresh food, fashion, and lifestyle items.
Highlight was the rise of consumers in lower-tier cities who were driving sales growth during the festival. Sales contributed by sixth-tier cities are growing the most rapidly. Consumers in third- and fourth-tier cities seem seem to show interest in brands and products similar to their counterparts in top tier cities, the company data shows.
Combining online and offline shopping for a “boundary-less retail” (JD’s term for new retail) experience, the company is partnering up with millions of stores and experience centers around China. During the 618 festival, Dada JD-Daojia, JD’s online-to-offline (O2O) e-commerce platform, doubled sales compared with the same period last year.
JD rival Alibaba also offered promotions for the festival, but revealed fewer details on its sales.
China’s e-commerce space, long dominated by JD and Alibaba, has become increasingly competitive with newcomers like Pinduoduo entering the space. The Shanghai-based social e-commerce upstart, which launched a joint “RMB 10 billion” subsidy plan with brands and merchants for the promotion, saw GMV exceed 300% year-on-year during the same 18-day sales period. The company said it received more than 1.1 billion orders, 70% of which came from lower-tier cities.