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Toplife has 30 luxury brands on its platform, 19 of which are exclusive to the site in the Chinese e-commerce market. Xia Ding, president of international fashion at JD, would like to grow this number to around 100 brands by 2021, with not only fashion apparel being represented, but also luxury lifestyle brands and travel.

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Other e-commerce platforms, such as Alibaba’s Tmall, multibrand luxury platform Secoo, as well as off-line stores, have followed suit with their own 6/18 promotions, partly due to the convenient midyear, end of season timing and the Chinese marketplace being so hotly contested. Naturally, comparisons are drawn between JD’s shopping festival and its main competitor, Alibaba’s, more established 11/11 shopping festival, the world’s largest 24-hour online shopping event that reached sales of $25 billion in 2021 for the company. The 24-hour festival, also known as Singles’ Day, is similarly copied by other online and off-line retailers in China, including JD.

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They are more about discount, more about outlet items, more about cross-border format models. We are a separate, independent platform and only work with brands directly. The product assortment is in season, most are full price and we offer superior service to consumers, including white glove service, including 24/7 fashion consultant service. So that is really different to other players for the luxury space in China right now. I think it is probably quite different from all the e-commerce players in the luxury space in the rest of the world. Most are discount, most are outlet,” Xia said at a roundtable discussion.

The discount level isn’t as appealing as 11/11, which claims to be up to 50 percent, although these types of promotions weren’t common based on last year’s experience. There are promotions happening all the time for different brands, so consumers don’t have to wait until that 6/18 to order so much,” Tanner said.

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E-commerce in China is an extremely consolidated marketplace, with Alibaba and JD taking the lion’s share of the market. This year, in order to differentiate itself from its main competitor during its anniversary sales period, JD made a push in technology capabilities, such as smart logistics and fully automated warehouses to maintain delivery efficiency, as well as implementing artificial reality shopping features. JD’s AR Styling Station, which allowed consumers to test the look of colored contact lenses on their faces before buying them, was used by 70 percent of consumers who purchased colored contact lenses during the sales period. Additionally, 52,000 boxes of Johnson & Johnson’s 1 Day Acuvue Moist lenses were sold in just one day during the sale, according to JD sales data. The company’s online partnership with Tencent, and therefore its WeChat and QQ platforms, and other content providers also helped to drive interest during the sales period this year.

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JD’s 6/18 promotional period runs from June 1 to June 20 on the JD.com platform and June 14 to 20 on Toplife, the e-tailer’s new premium brands platform. This year, transaction volume for the first 18 days of the anniversary sale was $24/7 billion, up from the $17/6 billion registered for the same period last year. During the period, 510,000 men’s belts were reportedly sold on the platform in the first 18 days, with Adidas registering a 200 percent increase in year-over-year sales, and Fila, as well as Under Armour, noting a 100 percent increase in sales for the same period last year.

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JD leverages its superior logistics, thanks to its use of big data and automated warehouses allowing for over 90 percent of its orders to be delivered on the same or next day, and high-quality service standards such as Toplife’s white glove delivery service by highly trained delivery staff, to appeal to middle class consumers. JD also has the reputation of providing higher-quality goods, after Alibaba’s counterfeit scandals.

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And that’s really impressive in a way. You know, for the luxury brands, one of the things that is really kind of challenging them from further growth is their penetration to the lower-tier cities. We know there are consumers there. There are a lot of wealthy people there, however, the brand does not have the capital or economies of scale to open up a store in the lower-tier cities. Basically, those lower-tier cities they cannot touch, but through e-commerce they can touch them. We can help them to reach 56 cities. And the average price is not lower than tier one or tier two. Those buyers, they really have strong purchasing powers,” said Xia.

This year, 6/18 fell on the Dragon Boat Festival, a national holiday day in China, as well as on Father’s Day and the kick-off to the World Cup, which all could have helped boost sales and tied in with the marketing campaigns of different brands. However, Tanner believes that Chinese consumers might be becoming desensitized to the seemingly endless run of promotions in the market.

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