As China’s e-commerce giants battle for consumers, online shopping festivals like JD.com’s ‘618’ are starting to gain major momentum. Ending on June 18 2017, the 18 days of discounts raked in a record US$17.6 billion in transaction volume, partly thanks to an increase in fashion, luxury, and maternal purchases.

The total sales increased by 50 percent compared to 2016, enough to propel JD.com’s shopping festival to bring in nearly as much as Alibaba’s Singles’ Day shopping event on November 11. In 2016, Singles’ Day earned US$17.8 billion in sales in 24 hours, with US$14.71 million earned in the first seven minutes. Alibaba’s Tmall, JD’s main rival, still controls more than half of the sector, with JD controlling just under 25 percent.

JD.com’s 18-day event saw the growth of many categories and brands, including an 11-fold increase in transaction volume for Tag Heuer watches, and a five-fold increase transaction volume for Tommy Hilfiger products. The shopping festival not only attracted more luxury and fashion consumers, with twice as many first-time female shoppers compared to last year, but saw fresh food sales grow five-fold. Out of its supermarket sales alone, baby formula, cherries, premium ice cream, beef, and diapers were among the top purchases.

To attract more luxury consumers, JD.com launched a new complimentary delivery service earlier this month for purchases of high-end jewelry, watches, and accessories. The “white glove” service sees that consumers’ purchases are brought to their door in two days or less by a courier in a suit and white gloves. The courier also drives an electric car instead of a scooter or three-wheeled cart, all to match the attention to service with the category of purchase.

Amazon 2017 enters e-commerce battle by introducing shopping festival in China. Amazon plays catch-up with JD & Alibaba.

For Amazon, it’s a big step towards localizing their offerings in China and strengthening its market presence in a region dominated by domestic giants Alibaba and JD.com. With the successes of Alibaba’s Single’s Day and JD.com’s 618 shopping festival, it is no secret that Chinese shoppers love these kinds of online sales events. Two weeks ago, at its 618 festival, JD.com scored a record US$17.6 billion in transaction volume.

Amazon first launched its signature Prime membership program in China in October 2016 mainly to meet the rising need for cross-border e-commerce services among China’s affluent population. On this platform, it offers various types of products that Chinese consumers like to buy, ranging from premium goods for mothers—such as milk powder and diapers—to luxury items from brands including Gucci and Kate Spade.

(Source: JingDaily)