China’s second-largest annual online shopping festival, 618, is set to kick off as e-commerce giants Alibaba, JD.com, and ByteDance’s Douyin prepare for fierce competition amid a weak consumer spending environment. Each of the companies has announced their plans to start discounts next week, with the event extending over several weeks, retaining its original June 18 date.
Alibaba’s Taobao and Tmall Group will begin the first phase of sales on Tuesday evening, lasting until May 26. This period will include a three-day presale followed by 10 days of direct sales. JD.com will also start its preliminary sales on Tuesday at 8 p.m., with direct sales beginning on May 31. Douyin, the Chinese version of TikTok, will get an early start, launching its sales at midnight on Tuesday. The platform has pledged to invest “hundreds of millions in cash subsidies” to entice shoppers.
What started in 2004 as a simple promotional activity by JD.com has now grown into a highly competitive sales event that attracts steep discounts and large subsidies from the participating e-commerce companies. In an effort to simplify the process, Taobao and Tmall Group announced they would streamline the discount rules this year, offering an “official instant discount” ranging from 15 to 50 percent, responding to consumer complaints about the complexity of past sales campaigns.
JD.com will provide a variety of discounts, including a 20-yuan coupon for every 200 yuan spent, and will combine its existing subsidy plans, such as the government-backed subsidies for electronics and home appliances. While last year both Alibaba and JD.com reported growth trends, neither disclosed the total gross merchandise value figures, as the e-commerce giants battled to secure consumer spending amid China’s economic slowdown.
This year, TTG has partnered with the Chinese social media platform Xiaohongshu (RedNote) to allow merchants on Taobao and Tmall to embed product links directly in their posts. This collaboration aims to leverage RedNote’s 300 million monthly active users to boost engagement and sales. Additionally, Alibaba has been focusing on expanding its user base by enhancing delivery speeds, competing directly with JD.com and Meituan in the instant delivery market. Taobao Instant Commerce orders recently reached 10 million per day, just a week after its April 30 launch, signaling the growing importance of fast deliveries in e-commerce.
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