The report shows that Chinese e-commerce sales increased by 14% during the 618 shopping festival

Douyin, Chinese version ICT Tok, led all other platforms with GMV growth of 26.2%, followed by Pinduoduo by 17.7% and Kuaishou by 16.1%. According to Analysys, Alibaba and JD.com saw GMV growth of 12% and 5.7%, respectively.

Workers sort parcels at an express logistics company in Huzhou, eastern Zhejiang province, on June 18, 2024. Photo: Xinhua — Workers sort parcels at an express logistics company in Huzhou, eastern Zhejiang province, June 18, 2024. Photo: Xinhua

Companies have largely stopped publishing their own GMV numbers for large shopping festivals, including this year’s event 618. Analysys’ data, however, is consistent with the growth narrative emerging from the limited data companies have released this year.

On Wednesday, JD.com said transaction and order volume during its mid-year sales extravaganza broke records, but did not disclose exact numbers.

GMV Taobao and Tmall also posted a new high during the campaign period ending June 18, according to people familiar with the matter.

“The gap between online growth and total retail sales growth is gradually widening, indicating that the driving force of online consumption is much stronger than offline consumption,” Analysys said in the report.

“Although there is no clear downward trend in consumption this year, consumers are generally more rational in their spending plans,” said Joyce Ju, vice president of Greater China Internet Research at BofA Securities.

Ju noted that online sales in some categories, such as clothing and home appliances, are weaker, while segments such as online food delivery remain more resilient.

Despite the increase in GMV, many sellers have complained that profits are falling due to the brutal price war that has erupted as platforms compete to attract price-conscious consumers in a slowing economy.

Zuoliang – a domestic brand that sells bird’s nest soup on JD.com – said in a social media post on Thursday that 618 was “forced to sell at a price even lower than our cost” during the event. , creating an “unprecedented dilemma.”

Other brands have also complained publicly that they have suffered losses on their merchandise, including clothing and home appliances.

A live-streamer sells products online from Longquan Township in southwestern Guizhou province on June 18, 2024. Photo: Xinhua — A live streamer sells products online from Longquan Township in southwestern Guizhou province, June 18, 2024. Photo: Xinhua

According to BofA’s Ju, sellers are trying to take a more rational approach to sales this season, but platform operators have become more aggressive in providing cash grants and rebates to consumers.

“E-commerce platforms are placing greater emphasis than ever on price competitiveness as they seek to protect and regain market share in the face of increasing competition in the sector,” Ju said.

Pinduoduo has reportedly introduced an “automatic price tracking system” allowing sellers to quickly adjust prices online during the 618 event. According to recent Chinese media reports, Douyin is also testing an intelligent pricing system for sellers.

During the event, e-commerce parcel delivery rates increased 23 percent year-over-year, outpacing GMV growth, primarily due to higher return rates and a potential year-over-year decline in order value, reflecting more conservative consumer behavior, according to an HSBC research note on Thursday .

Jessie Li, a 30-year-old living in Shanghai, said she spent almost 4,000 yuan during this year’s sale. However, this year she decided to buy “obviously cheaper” brands that she would not have bought a few years ago. Many of them are national brands that offer similar quality at lower prices, she added.

“After my boss cut my quarterly bonus last year, I had no choice but to become more price sensitive,” Li said.