Mid-year shopping festival draws new customers: Alibaba
Alibaba’s 6.18 mid-year shopping festival has generated sales volumes that rival its flagship 11.11 shopping festival, the Chinese e-commerce giant has revealed.
More than 110 brands generated a gross merchandise volume [GMV, a sales metric used by Alibaba] in excess of RMB100 million, or roughly $21 million, and more than 100 brands surpassed their result from last year’s 11.11 shopping festival.
Alibaba’s 6.18 mid-year shopping festival ran from June 1 to June 18, and more than 200,000 brands took part.
Sales on Tmall Global increased 153 per cent during the festival compared to last year, with Australia one of the top five countries by GMV, along with Japan, the US, South Korea and Germany.
Taobao livestreaming helped generated GMV of more than RMB13 billion ($2.7 billion), while flash sales channel Juhuasuan added over 300 million new consumers, Alibaba said.
More than 180 products topped RMB10 million in sales, and 4700 products achieved sales of over RMB1 million.
“We are very pleased to see that our strategy to help brands penetrate the less-developed markets has paid off,” Jiang Fan, president of Taobao and Tmall, said.
“Customers in the emerging cities are very receptive to innovative products and promotion campaigns such as programs on the Juhuasuan platform.”
The number of customers and GMV from third- to fifth-tier cities both hit 100 per cent growth.
“We believe this group of customers will continue to grow into a strong and sustainable force for brands who are looking at further developing the Chinese market,” Fan said.
According to Tmall, 48 per cent of the newly launched products on the platform during the event were purchased by customers outside first- and second-tier cities.
Demand and preferences from lower-tier cities consumer were diverse, ranging from high-end electric products from Apple to imported fruits such as durian from Malaysia, and daily necessities, including socks and toothbrushes, the online marketplace said.
Alibaba announced Tmall’s Luxury Pavilion sales more than doubled from last year, boosted by customers in emerging cities and shoppers born after 1995. Premier brands hit better-than-expected results.