The 2024 618 shopping festival, one of China's largest online retail events, demonstrated significant consumer behaviour and marketing strategy shifts. According to QuestMobile data, the festival saw a remarkable increase in online retail and express delivery numbers starting mid-May. The comprehensive e-commerce industry’s active penetration rate reached 85.6%, surpassing last June's level, with daily active users averaging 667 million, higher than the 650 million in the same period last year.
Key Insights and Findings
1. Cemented Consumer Habits and Multi-Channel Demand Breakthroughs
Steady Consumption Trends and Growth in Online Retail:
The 618 shopping festival continues to drive steady growth in online retail. The convenience of express delivery has increased the frequency of online purchases, making consumption more fragmented and spontaneous. This year, express delivery volume exceeded 50 billion items, reaching this milestone 32 days earlier than in 2023, showing significant growth.
Shelf E-commerce as a Key Traffic Entry Point:
Users' attention is expanding through content e-commerce and mini-programs, broadening e-commerce boundaries. In May 2024, the comprehensive e-commerce industry's active penetration rate was 85.6%, compared to 84.3% in June 2023 and 86.3% in November 2023.
Aggregated Traffic and Multiple Entry Points:
E-commerce platforms aggregated traffic from various channels during the promotion, optimizing traffic acquisition, conversion, and retention. The 618 shopping festival has achieved a state where "users are browsing or placing orders whenever they are awake," with a small peak still occurring at 8 PM. The buzz created by 618 surpassed last year's, with discussions on the kickoff being more heated due to changes like the cancellation of pre-sales.
2. Solid Shelf E-commerce Foundation and Growing Content E-commerce
Extended 618 Period and User Activity Peaks:
This year's 618 shopping festival extended to a month-long event, maintaining stable traffic and incremental growth. Comprehensive e-commerce platforms saw user activity peaks aligning with promotional events, while content e-commerce platforms maintained relatively stable traffic throughout the period.
3. Low Prices and User Experience as Main Themes
Enhanced User Experience:
Platforms increased discount efforts and upgraded after-sales solutions to stimulate user orders. From the merchants' perspective, marketing resources were more integrated, with upgraded marketing resources, warehousing solutions, and cross-platform cooperation improving overall customer acquisition capabilities.
Focused Marketing Efforts:
Marketing rhythms were advanced, with hard advertising placements peaking on May 20. Cross-platform advertising transfers to comprehensive e-commerce platforms were notably effective. Keywords for 2024 618 marketing included "early purchase," "real savings," and "good products." Young female users stood out in topic discussions about 618.
Diverse Live streaming Sales Formats:
Live streaming sales included top-tier influencers, celebrity live streams, brand self-broadcasts, buyer live streams, and digital person live streams, enriching product categories. Brands applied short drama marketing, integrating products into storylines and embedding purchase links to increase exposure channels.
4. Distinct Traffic Aggregation Effects
Female User Influence:
Marketing had a more substantial impact on female users, who are the main target for new user acquisition during promotions. The appeal of "low prices" to younger users increased. The appeal of the 618 shopping festival extended to lower-tier cities. For instance, Kuaishou effectively attracted users from lower-tier markets, with nearly 25% of new users during the observation period coming from cities in the fifth tier and below. Homogenized and transparent marketing strategies shortened users' decision-making paths, leading to more direct ordering. The proportion of users comparing prices across multiple platforms decreased.
5. Participation Willingness and Consumer Confidence
Participation Willingness and Motivations:
82% of respondents expressed their intention to participate in this year's 618 shopping festival, slightly lower than the 89% for last year's Double 11. The main drivers for participation were stocking up on daily necessities and habitual consumption. Inflation affected consumer confidence, with 87% of respondents feeling that price increases impacted their spending levels.
Expected Purchase Behavior:
Most respondents preferred cost-effective products, with no significant preference between imported and local brands. The main categories of planned purchases included FMCG home and personal care products, with an increase in home cleaning products, technology/electronic products, and outdoor gear compared to last year's Double 11, and a decrease in clothing consumption.
Preferred Shopping Platforms:
Taobao/Tmall was the most preferred shopping platform, although its preference rate declined compared to last year's Double 11, with consumers shifting to other platforms like JD.com, PDD, and Xiaohongshu. Nearly 50% of respondents planned to shop in brand official live streams, while one-third did not intend to shop in live streams.
The 2024 618 shopping festival demonstrated evolving consumer habits and the importance of integrated marketing strategies in driving sales. With innovative approaches like content marketing and diversified live streaming formats, e-commerce platforms and brands they have successfully navigated the competitive landscape, engaging consumers and boosting sales. Understanding consumer behaviour and leveraging the right marketing channels will be crucial for businesses looking to capitalise on these trends.
Contact us today for tailored strategies that help your business thrive in this dynamic market.
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