JD.com, one of the largest Chinese online retailers and Alibaba competitor, announced that the company generated 100 million orders on its annual one-day sale in June, according to Internet Retailer. This marked a 60% increase compared to the same sale last year.
12x Spike in Foreign Brands in Chinese Ecommerce Sale
Foreign brands contributed to this surge, as sales within JD.com’s section for foreign-brand items were 12 times greater than last year’s sale. Sales on Apple smartphones, Lenovo laptops, Beats headphones,and Nestle food products were all comparatively greater than China-based brands in their respective categories. This stems from Chinese consumers’ growing desire for foreign-made goods amid concerns about quality and safety standards. By 2020, more than a quarter of the population will shop digitally for foreign products, according to eMarketer in its first analysis of the consumer trend. More than 60% of Chinese consumers would pay more for products made in the U.S. rather than China, according to The Boston Consulting Group.
Sales on Apple, Lenovo, Beats and Nestle food products were all greater than its Chinese counterparts. This stems from Chinese consumers’ growing desire for foreign-made goods amid concerns about quality and safety standards.
Sales days to generate online retail business during off season.
Online retailers around the world are offering one-day summer sales in order to generate business during the off season. Companies such as JD.com and Amazon note their highest sales during the winter holiday season. Amazon had its first Prime Day in July 2015 and generated 18% more sales than it did on Black Friday in 2014, reports Fortune.
This is also happening in Southeast Asia. More than 130 ecommerce sites in Indonesia are joining forces to hold the three-days promotions called Harbolnas (National Online Shopping Day) where the transactions recorded is up to $158 million (Rp 2.1 billion).
More online retailers could host these types of one-day promotions in order to generate off-season sales and increase brand awareness before the winter holiday season.