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Alibaba Group’s China commerce business reported strong performance for brands and solid growth in its key consumer cohort during this year’s 6.18 Mid-year Shopping Festival.
As of June 18, 365 brands on B2C e-commerce platform Tmall had surpassed RMB100 million ($13.8 million) in gross merchandise value (GMV) during the sales event.
Over 36,000 merchants saw their GMV double, while the GMV of international brands, including Apple, Nike, L’Oréal, Estee Lauder and Adidas, topped RMB1 billion.
This year, Taobao and Tmall Group’s eponymous online marketplaces simplified the shopping experience with a campaign consisting of two sales periods: the first from May 20 to May 28 and the second from May 31 to June 20.
The business also introduced initiatives to enhance 88VIP program privileges and support merchants with operational tools.
Merchants and consumers alike reaped the benefits.
Taobao’s “RMB10 Billion Subsidy Program” sales channel, featuring quality products with competitive pricing, recorded a 550% year-over-year rise in GMV as of June 17. GMV attributable to computer, communications and consumer electronics products rose 878%, while that of small appliances jumped more than 800%.
On the platform’s livestream e-commerce feature, users were treated to a celebrity and CEO-packed lineup during the promotional period, which further boosted engagement and sales results.
The number of Taobao Live channels generating more than RMB100 million in GMV increased by 53% year-over-year, including 47 merchant-operated livestreaming channels and 34 KOL-operated ones.
Loyalty Program Grows
Members of Taobao and Tmall’s 88VIP loyalty program, considered a key consumer cohort by the platforms, benefited from upgraded services and exclusive vouchers, resulting in increased membership base and member purchases.
The number of new 88VIP members added during the 2024 6.18 campaign grew by 65% compared to last year, setting a platform record for the program membership size.
Individual brand membership programs also reported growth, with brand-operated loyalty programs attracting a combined 90 million new members during the 6.18 period.
As of June 16, program members contributed more than RMB100 million in GMV at over 120 brands. Over 1,100 brands generated more than RMB10 million in sales from their members.
Membership in 88VIP increased by double digits year-over-year in the quarter ending on March 31 to top 35 million members, according to the group’s latest earnings report.
Small Businesses Find Success
With improved merchant support initiatives and the inclusion of Taobao merchants in eligibility for consumer discount vouchers, small businesses shined during this year’s 6.18.
As of June 18, 1.9 million small businesses on Taobao saw more than 100% growth in GMV. Nearly 30,000 merchants generated more than RMB1 million in GMV, along with record participation and performance from emerging brands.
On Tmall, 576 emerging brands – which have been on the platform for less than three years – claimed top positions in their respective product categories in terms of sales.
A raft of platform support measures for small merchants helped them succeed, including a suite of AI tools.
At the same time, smaller brands could rely on the platforms’ enhanced rapid settlement program which ensured prompt payments upon product shipment during the promotion as well as relieving cash flow pressures.