To win the race, one must break the rules!

This "618" in 2024 is filled with a unique atmosphere unlike any previous year. In the past, the "pre-sales" of major e-commerce platforms were already in full swing, and consumers had to go through several rounds of "advanced math" problems between deposits and discounts.

This year, however, all platforms have unexpectedly reverted to their original simplicity, abandoning the nearly decade-old pre-sales system and adopting a more straightforward full discount approach, providing more convenience and benefits to consumers. Although most platforms started their promotions around May 20th, consumers seemed to be much more relaxed.

In fact, in recent years, China's online retail sales have shown a trend of decelerating growth. Against the backdrop of the "fatigue" of major sales events, the "simple and direct" approach has gained more popularity.

A user survey report on "618" consumption attitudes revealed that over 60% of consumers agree that the ultimate cost-effectiveness is the optimal comprehensive experience. In other words, under the premise of price advantage, whoever offers a simpler playing method, a more comprehensive brand selection, better quality, faster logistics, and more comprehensive after-sales service will be more favored by consumers.

As Ma Yun said in his internal letter "To Reform, To Innovate," what matters is not who we catch up with today, but how e-commerce should enhance the consumer experience tomorrow. This 618, not only Alibaba, but almost all e-commerce platforms have started to focus on improving user experience.

By canceling pre-sales and "simplifying complexity," more resources are being invested in reducing product prices and improving product quality, a choice made from the perspective of users. This allows e-commerce platforms to return to their original intentions, the essence of service, and accelerate their alignment with user needs, thereby enhancing user experience and satisfaction.

At the same time, the competition between e-commerce platforms is fierce in the "618 sales battle." This year's 618 promotional season, which covers the Dragon Boat Festival and Father's Day, has triggered various consumption scenarios, effectively stimulating market vitality in a short period of time. The second half of online shopping, which belongs to comprehensive system competition, has officially begun.

Low prices take the lead, fierce competition.

As the unassuming "cut a price" platform Pinduoduo grows into a top e-commerce giant, the long-standing competition rules of e-commerce platforms have undergone drastic changes: in the new era, low prices have become the ultimate secret to attracting traffic.

Surveys show that in 2023, over 85% of online shoppers were more rational when shopping online, and the price discount became the most important factor for e-commerce platforms to attract consumers.

Against this backdrop, starting in 2023, Alibaba and JD.com joined the competition for "the lowest price on the entire network"; in early 2024, Douyin E-commerce also entered the fray, using low prices as its weapon. This 618, "low prices" have become the best "killer move" for major e-commerce platforms in fierce competition.

Focusing on the most sensitive price for consumers, JD.com launched the JD procurement and sales live broadcast room. Xu Ran, CEO of JD.com Group, appeared at the press conference wearing a red vest of JD procurement and sales. During the conference, Xu Ran continuously emphasized user experience and low prices. At the same time, JD.com also offered nearly 600,000 branded goods with low prices across the entire network with a subsidy of tens of billions, as well as nearly 500,000 cheap items with low prices across the entire network selected by the 9.9 yuan free shipping channel, attracting numerous consumers.

Data shows that in the first hour of the 618 opening, the number of orders in JD.com's tens of billions of subsidies zone increased by over 50% year-on-year; the 9.9 yuan free shipping channel attracted over 100 times more users in one hour compared to the same period last year. The strong response to this year's heavily promoted "2 yuan free shipping day" for industrial zone goods further demonstrates JD.com's sincerity in offering "low prices."

On Tmall, not only has pre-sales been canceled and products are sold directly as available, but the barriers between Taobao merchants and Tmall merchants have also been broken down, enabling consumers to enjoy the same full discount activities on Taobao as on Tmall. This alone led to a year-on-year increase of over 100% in the transaction volume of 370,000 small Taobao merchants on the first day of the opening on May 20th.

It is worth noting that this year, live streaming e-commerce platform Douyin has also entered the "low price" battle.

In 2024, Douyin has placed "price competitiveness" as its top priority, ahead of perfect order rate, which measures user experience, and the number of monthly paying users, which reflects the frequency of consumers using Douyin as an e-commerce platform. Sales are ranked last.

The "Douyin Mall 618 Goods Festival" promotional event has specially set up channels such as super value purchases and low-price flash sales to meet consumers' shopping needs for "excellent prices."

Pinduoduo has also made numerous preparations in terms of pricing. It is understood that Pinduoduo recently launched an "automatic price tracking" system. After merchants enable this function, the Pinduoduo platform can automatically adjust prices within the price range set by the merchant, and it is emphasized that once enabled, it will not be supported for closure before the end of the June 21st promotion.

Using "low prices" as a weapon and engaging in fierce competition is the most significant feature of this year's 618.

Changes in Playing Methods Become a Consensus

Judging from the choices of major platforms, while relying on low prices, the "differentiated" shopping experience has also been placed in a more important position. Relying on their profound accumulation in the supply chain, major e-commerce platforms have explored a new path that suits them.

Among them, the theme of JD.com's Double 11 in 2023 was "really cheap," while this year's 618 theme has changed to "cheap and good," emphasizing product quality on top of low prices. Xu Ran emphasized that looking forward, the ultimate user experience is JD.com's eternal pursuit.

Not only that, during this year's "618" promotion, JD.com's over 20,000 customer service representatives provided 7x24-hour round-the-clock service, with over 200 basic services and over 80 industry-first and unique services protecting user experience.

"Pay Later" participated in JD.com's "618" for the first time, with orders increasing by 120 times compared to last year's "Double 11." At the same time, over 85% of products enjoy "price protection," and 97% of JD.com's self-operated products and 75% of third-party merchant stores support "free home delivery and return."

Under such comprehensive services, on the day of the promotional kickoff on May 31st, the transaction amounts of many brands such as Apple, Midea, Haier, Xiaomi, and Huawei quickly exceeded 100 million yuan. As of 24:00 on that day, over 10,000 brands saw year-on-year growth of over 5 times, indicating the good results of JD.com's low prices and improved user experience.

Alibaba Group CEO Wu Yongming, who also serves as Taobao Tian Group CEO, personally oversees the e-commerce business and has made "user-first" one of Alibaba's new strategies. To enhance users' experience on Taobao and Tmall platforms, over the past six months, Taobao and Tmall have taken frequent actions, from "only refund" to upgrading 88VIP benefits (unlimited returns with shipping included), to canceling pre-sales and creating the "simplest" promotion in history. Alibaba has clearly adjusted its 618 competition strategy.

As of 9 pm on May 31st, 185 brands broke the 100 million yuan mark in transactions on Tmall's "618," and over 37,000 brands doubled their transactions.

The usually low-key Pinduoduo has also realized the changes in the competitive environment. Pinduoduo Chairman Chen Lei said during a Q1 earnings call on May 22nd that consumer demand is now showing a trend of "rationality and stratification." This requires us to better meet consumers' needs for higher-quality products and richer consumption scenarios on top of affordability.

In addition to low prices, the Douyin platform has also strengthened exclusive guarantees in terms of quality control, delivery timeliness, logistics experience, and after-sales service to enhance consumers' experience.

Behind the changes in playing methods is a summary of intense online competition in the past few years. Based on environmental changes and improvements in their own conditions, major platforms have found a new balance. As Chen Lei said, "We now see that consumers have formed the habit of cross-platform consumption. Consumers compare and make choices across multiple dimensions such as product categories, prices, and service quality between different platforms."

It is undeniable that e-commerce platforms have entered the era of stock, and how to attract and treat consumers is a decisive password that each platform needs to continuously explore.

Live Streaming Showcases New Trends

As this year's 618 promotion progresses, traditional top-tier live streamers have somewhat "cooled down." Xinba, who rushed ahead last year, only started live streaming five days after Kuaishou officially announced the promotion this year; Dong Yuhui plans to only spend one-third of his time promoting agricultural products; Luo Yonghao is busy with entrepreneurship and only appeared in Taobao and Douyin live streaming rooms, without creating hype in advance as in previous years; Li Jiaqi, apart from live streaming, has ventured into the entertainment industry, appearing somewhat "unfocused."

The disinterest and "departure" of major live streamers may indicate that live streaming e-commerce has reached a critical point of change.

In February this year, Taobao announced the establishment of a live streaming e-commerce company, providing "full-service" managed operations for stars, KOLs, and MCN agencies interested in joining Taobao live streaming. During the 618 period, hundreds of stars flocked to Taobao live streaming rooms, many of which adopted the fully managed model.

On June 5th, this full-service live streaming service was expanded to enterprises. Any CEO willing to endorse their own company can enter Taobao live streaming rooms with zero barriers to start live streaming. This one-stop "full-service" model, from inventory management to live streaming room operations, injects new vitality into Taobao, and its subsequent development is worth continuous observation.

JD.com Live also plans to upgrade its management mechanisms for agencies and influencers and introduce rating management. It is understood that during the JD.com 618 shopping festival, the output and efficiency of agencies in terms of broadcast duration, frequency, and sales will be important considerations for this rating management.

It is worth noting that, like Taobao, JD.com Live has also targeted enterprise CEOs. However, unlike Taobao, many brand presidents and "AI digital presidents" will participate in the JD.com 618 shopping festival in the form of live streaming. With AI, JD.com has mastered the art of using virtual digital humans.

Two months ago, the digital person "Procurement and Sales Dongge" modeled after Liu Qiangdong appeared in JD.com's home appliance and home furnishing, as well as JD.com supermarket procurement and sales live broadcast rooms. This 618, Xu Ran's AI digital person also made a splash during the press conference. Moreover, during the 618 period, hundreds of brand presidents will successively appear in live streaming rooms, allowing consumers to face them directly and "negotiate prices with the boss."

Pinduoduo has launched the "618 Brand Support Activity." Successfully registered brand broadcasters can receive free traffic support. If they complete the corresponding sales revenue within the week, they can receive advertising bonus rewards the following week. Among them, a single broadcaster can receive up to 7,000 yuan in advertising bonuses and tens of millions of free traffic support per week.

In the opinion of industry insiders, as the live streaming industry becomes more standardized and segmented, a large number of vertical "champion" broadcasters will emerge. In the future, more broadcasters will gain platform support and consumer trust, and this year's 618 promotion may become the starting point for a new live streaming competition.