Preparing for JD.com's 618 Festival
JD.com's 618 festival is one of the hottest e-commerce sales events of the year. How are international retailers and brands preparing for the big event?
by Azoya Consulting
Created as e-commerce powerhouse JD.com's answer to Alibaba's Singles Day, the 618 Festival is a mid-year event on June 18th that commemorates the company's founding on that day and offers some of the best e-commerce deals of the year.
The festival kicked off on June 1st by selling 5 billion RMB worth of merchandise within the first hour, and lasts until June 18th, with the biggest promotions reserved for the last few days.
Last year, the festival generated $17.6 billion in gross merchandise volumes, whereas Black Friday in the US generated just $5 billion, a testament to how quickly e-commerce has grown in China.
JD.com's home page with 618 advertisements
Competition amongst brands intensifies - how to differentiate oneself?
While festivals like 618 can drive a lot of traffic to one's brand site, competition also intensifies, especially for the last few days of the festival. We recommend that retailers and brands start early when negotiating for website space and promotions with JD.com.
Additionally, KOL influencers can charge as much as twice their normal rates during the 618 festival, so make sure that they're aligned with your goals and can provide high ROI.
Lastly, people often turn to cross-border e-commerce when they look for more premium products, and they expect that those products be accompanied by premium services. Some retailers choose to compete on price to drive more traffic and sales, but if you're offering a premium product, relying too much on these tactics may hurt your brand. Make sure that your logistics, IT infrastructure, customer service, etc. are all ready for the surge in user traffic and sales when the big day comes.
To learn more about how retailers and brands are preparing for the big event, click below for our deep dive report on the 618 festival.