Summary of Key Points
This year's 618 event is no longer just a one-time promotional festival focused on "low-price frenzies"; it has evolved into a comprehensive business transformation opportunity for platforms, merchants, and consumers. Platforms are using AI to simplify rules, merchants are shifting from focusing on volume through low prices to building brands and ensuring profits, and consumers have become more rational and practical. Live streaming has also evolved from simply selling products to providing content recommendations and long-term engagement with products. The overall approach has shifted from pursuing short-term spikes in Gross Merchandise Value (GMV) to a sustainable model that takes into account sales volume, brand building, new product launches, and customer retention.
I. Platforms: AI as a New Tool, Simplified Rules
This year, platforms are no longer just promoting "the lowest prices"; instead, they are attracting users and merchants with technology and services:
- AI Integration: JD.com used its JoyAI large model to create virtual hosts (digital personas called JoyStreamers), which increased the number of merchants participating by six times, generating over 70 million in sales within four hours. TikTok has made AI tools available to help merchants quickly produce short videos and product images, making it easier for consumers to make purchase decisions.
- Simplified Rules + Merchant Support: Platforms are reducing the emphasis on "absolute low prices" and simplifying complex promotional tactics (such as multiple discount coupons) to save consumers the hassle. As a result, more new merchants are joining in: the number of new merchants on JD.com increased by 62% this year, with 51 new merchants generating tens of millions in sales within just four hours.
- Explosion in Overseas Markets: JD.com's global sales doubled, with categories like photography and beauty products seeing growth of over 300%, indicating that 618 is now attracting international consumers.
II. Merchants: Moving Away from Low Prices to Focus on Brands and Profits
In previous years, merchants often sacrificed profits to boost sales volume. This year, they are focusing on maintaining profits and building brands:
- Transformation of a Snail Rice Noodle Brand: A well-known snail rice noodle brand avoided price wars this year and targeted the mid-to-high-end market. Although sales were the same as last year, profit margins increased by 15%. The brand also developed new products that are fresher (with fewer additives) and faster to cook (ready in 20 seconds), meeting consumer demands for health and convenience.
- Multi-platform Strategies of Marinated Goose Merchants: A Shantou-based marinated goose merchant used TikTok for content promotion and live sales, ensured product freshness through cold chain logistics on JD.com, and built a brand image and customer loyalty program on Tmall, using 618 as a platform for brand promotion.
- Why Stop Focusing on Low Prices? Experts argue that low prices squeeze profits, and consumers have become indifferent to constant discounts. Additionally, the cost of traffic and high return rates make it less profitable to rely on low prices; instead, focusing on quality and branding is more effective.
III. Consumers: More Rational, Less Impulsive Spending
This year, consumers are not as easily swayed by low prices; they are looking for better value and meeting their actual needs:
- Experts observe that consumers are more practical and no longer buy unnecessary items just to complete purchase quotas. For example, instead of rushing to grab coupons and staying up late, they are more concerned with whether a product is truly needed and its quality.
- Platforms are responding to these changes by simplifying purchasing processes and using AI tools to help customers make informed decisions, making shopping easier and more satisfying.
IV. Live Streaming: From "Sales Promotion" to "Long-Term Engagement through Content"
Live streaming has evolved from simply selling products to providing valuable content and building customer trust:
- Data from Yuanwang Technology shows that in the first six days of live streaming, the highest one-hour sales reached 7.1 million yuan, with over a million transactions generated from 48 links. Short videos play a significant role in attracting customers; for instance, live streams featuring celebrities like Selina Hong and Victoria's Secret received 40% of their traffic from these videos.
- The new value of live streaming lies in using content to build customer trust and foster long-term relationships with brands. For example, hosts not only sell products but also share stories behind them, helping consumers develop a connection with the brand and leading to repeat purchases.
V. The Reorientation of 618: From a "GMV Frenzy" to a Comprehensive Business Event
After years of development, 618 has transformed from an initial promotional event aimed at boosting sales volumes into a comprehensive test for the entire industry:
- For Merchants: It provides opportunities to test new products, promote brands, and maintain customer relationships (for example, orders for custom-made products increased in May, indicating early planning by merchants).
- For Platforms: It serves as a test of new technologies like AI and instant retailing, assessing the ability to retain customers and improve transaction quality.
- For the Industry: It marks the transition of e-commerce from relying on traffic dividends to focusing on long-term operations driven by quality, service, and technology.
In summary, this year's 618 represents a shift away from short-term excitement towards more sustainable business practices. Merchants are seeking reasonable profits, consumers are looking for value, and platforms are competing with technology and services. This may become the new norm in e-commerce.