Every year, JD.Com, also known as Jingdong, rolls out its 6.18 Sales Festival. The event begins on June 18 and runs through 18 days. The 6.18 event for 2019 smashed all previous records for sales. The 18 days brought in $29.2 billion in revenue.
JD.Com officials said the tremendous success of this year’s sales festival was the result of several key strategies implemented by the company. One was a “laser-like focus” on the offering of new products. The second factor is slightly more complex. JD called it the “trading-up” phenomenon.
To bolster the sale of new items on the Jingdong platform, the company set up an exclusive site to both promote the new items and bring them to market. The new site was enhanced by a social media element that encouraged Jingdong users to share what they found on various social media outlets. Doing so earned them bonus points and rewards.
A key goal was to get residents in what the Chinese called “lower-tier cities” to up their participation in Jingdong shopping opportunities. Jingdong data showed that participation in lower-tier cities higher by percentage than overall participation data. Part of this effort was “birthday red envelope” campaign. This encouraged shoppers to share on social media platforms. JD users were also rewarded for bolstering their own cities.
Among the exciting new products rolled out during the 6.18 Sales Festival was clothing made by Prada, the iconic Italian fashion house with a world reputation for offering the finest, luxury brands.
Prada Group set up a flagship store on the JD platform in 2017. The sale of its clothing increased by 100% through 2018. Chinese consumers responded with enthusiasm to this exciting new option for clothing – again proving the Jingdong theory that offering new products can drive strong sales.
Prada was so pleased with Jingdong sales numbers that it has decided to set up two new flagship stores. It will create sites for its subsidiary brands, Miu Miu and Car Shoe. The new platforms are expected to open in 2020.
JD.com is the largest retailer in China with more than 300 million users on its e-commerce platform.