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China’s second-largest shopping festival kicks off on Monday evening across Alibaba Group’s domestic e-commerce platforms.
Merchants and consumers alike are preparing themselves, readying their stock and writing their wishlists to take advantage of major discounts available from 8 pm Beijing time on May 20.
This year’s 6.18 will be unlike any other.
Instead of a pre-sale period, sales will continue through two waves of promotions from this week until June 20.
Merchants on online marketplace Tmall and consumer-to-consumer site Taobao will put millions of discounted products in the hands of consumers.
Alizila breaks down the numbers to create your one-stop guide to 6.18, packed with essential data and details straight from the source.
Read on for must-know merchant and consumer benefits this 6.18
Consumer Perks
Online shoppers in China are in for a treat during this year’s 6.18 on Tmall and Taobao, as the platforms funnel more resources into a buffet of discounts and coupons.
In addition to the traditional 15% off sales venue and the “RMB50 ($7.05) off every RMB300 spent” deal, the platforms have announced the return of a special in-app sales venue where all products will be 50% off, including millions of items from brands including Huawei, Nike, Lululemon, Lancôme and more.
Consumers can look forward to more coupons in popular categories such as beauty and clothing compared with previous 6.18. More than 40,000 overseas and domestic clothing brands will bring over 10 million new products to shoppers.
The platforms have also earmarked over RMB10 billion for coupons reserved for its 88VIP loyalty program members, who will be able to use the vouchers in conjunction with other discounts on Taobao and Tmall as soon as sales begin on May 20.
Membership in 88VIP increased by double digits year-over-year in the fourth quarter to top 35 million members, according to the group’s latest earnings report.
Merchant Benefits
The major shopping festivals that characterize Chinese e-commerce can test the operational capabilities of even the most seasoned merchants. Alibaba’s platforms are working to reduce the burden ahead of this 6.18.
Taobao and Tmall have provided brands and merchants with a selection of AI business efficiency tools to optimize operations, generate visuals for product listings and improve marketing efficiency.
Merchants will also rest easy with the platforms’ financing support.
Over RMB200 billion has been allocated for a rapid settlement program for eligible merchants, ensuring prompt payments upon product shipment. This initiative alleviates cash flow pressure for merchants, especially small and medium enterprises.
In addition, Taobao and Tmall will cooperate with over 200 platforms, including Douyin and Tencent, to enable users across China’s wider internet ecosystem to link directly to Taobao and Tmall merchant stores.
Alibaba’s marketing arm, Alimama, will provide merchants with red envelopes worth RMB20 billion during the 6.18 period and expects to deliver tens of billions of traffic to some 1 million sellers.
On the logistical front, eligible merchants on both platforms will receive subsidies of up to RMB1,000, with additional perks available for new sellers on Taobao.