According to the data in the Quarterly Monitoring Report on China' s B2C Online Retail Market in 2019 Q2 released by Analysys, in 2019 Q2, the transaction scale of China's online retail market B2C reached RMB 1561.73 billion, with a year-on-year growth of 24.7%.
With respect to market share, in the Q2 of 2019, Tmall.com's total sales increased by 33.9% over the same period of last year, accounting for 62.4% of the market share, ranking first. The total turnover of jd.com increased by 21.8% year on year. Its market share was 25.6%, ranking second. Suning.com ranked third with its market share hitting 5.3%. The market share of vip.com and gome.com.cn was 3.2% and 0.7%, respectively, ranking fourth and fifth.
Tmall, which has always deemed the "Double 11 Shopping Carnival" as its most important promotional season, adopted a strategy that was different from the mid-year promotion in previous years for the "June 18 Shopping Carnival" this year. On the one hand, Tmall significantly increased its investment in promotional resources and put this year's "June 18 Shopping Carnival" in a position as important as last year's "Double 11 Shopping Carnival". On the one hand, it helped brands act in close collaboration with Ju.taobao.com, Taobaolive.taobao.com, Tejia.taobao.com, etc., to sustain a high growth rate of the stores. Because of this strategy which broke the routine, Tmall achieved good results in the "June 18 Shopping Carnival" this year. During the promotion, the trade volume of more than 100 brands surpassed that of last year's "Double 11 Shopping Carnival". The trade volume of the brand which enjoyed the highest growth increased by more than 40 times. Moreover, the trade volume of more than 110 brands exceeded RMB 100 million. The close cooperation with domestic and foreign brands was reflected in Tmall's resource investment not only in the "June 18 Shopping Carnival", but also in its brand growth plan: In the next three years, the Tmall platform will continue to help domestic and foreign brands and stores achieve rapid growth by doubling the transaction size. Besides, Tmall also announced to update the strategy for new products. In 2019, in addition to launch of more than 50 million new products, an amount of RMB 10 billion will be invested to incubate 100 new products with a trade volume of more than RMB 100 million. Brand resources are particularly important for e-commerce platforms, especially those in mature markets. Because the gameplay modes of platforms can be easily learned from each other and the SKU of existing products has a high degree of similarity, unique brand resources can more effectively attract more attention from the users, thus having an edge in competition that is difficult to be imitated. The relationship between the brands and the platform is even strengthened by the incubation of emerging brands from the source, creating an interest-community relationship between them two. Tmall has gradually promoted this strategy for development in collaboration with the brands by virtue of its own resource advantages. And an e-commerce development ecology with strong brand growth and high interdependence will be established in the future.
The "June 18 Shopping Carnival" originating from the anniversary of JD.com is its most important promotional season every year, as well as an important guarantee for the steady growth of its mid-year performance. In the "June 18 Shopping Carnival" this year, JD.com's resources put into the promotion activities still remained at a high level: It invested more than 10 million personnel to make relevant preparations in collaboration with the partners and launched a large-scale promotion with the 1 million offline stores. JD.com not only guarantees the effect of the promotion in the respect of resources, but also has new initiatives in the marketing plan: A relay race based on the geographical location of cities was launched at the end of May; Interactive activities such as birthday party were launched; The accounts of its PLUS members and the VIP members of V.qq.com were interconnected for a promotion based on the cooperation with Tencent. Intensive advertising from small screens to large screens, both online and offline, was launched to warm up the "June 18 Shopping Carnival". Thanks to the catalysis of such a wide-ranging and diversified marketing plan, JD.com achieved good results as expected during the promotion. The amount of orders placed cumulatively from 0:00 on June 1 to 24:00 on June 18 reached RMB 20.15 billion. While the orders increased rapidly, the efficiency of JD.com's logistics processes was greatly improved: During the "June 18 Shopping Carnival", the number of orders processed in smart warehouses increased by 99% year-on-year, and the logistics service revenue not from the JD.com platform increased by more than 120%. In addition to the hot spots in the "June 18 Shopping Carnival", JD.com's purchase of 46% equities in 5star.cn in April should not be overlooked. Although they two began to cooperate early in 2017, JD.com's shareholding can be seen as JD.com's determined action for off-line layout. While large 3C home appliance retailers continue to infiltrate into the online and offline markets of first- and second-tier cities, the bigger markets of third- and fourth-tier cities, counties and towns are not fully tapped. Therefore, JD.com's shareholding in 5star.cn can be seen as an important measure to accelerate the sinking of its main business due to the promotion of the retail mode of physical stores, thereby to boost the overall business growth.
Suning.com was not absent from the promotions in the "June 18 Shopping Carnival". In addition to the sales-promotion measures commonly used by e-commerce businesses, its more distinctive activities included the "old-for-new" in the form of "door-to-door recycling" as compared with other platforms. Suning.com launched the "old-for-new" three months before the "June 18 Shopping Carnival", in which additional subsidies totaling RMB 1 billion were offered for the purpose of achieving a competitive price advantage in the promotional season. In addition, "Suning Small Stores" which have been vigorously promoted offline also joined the promotion. Its layout of more than 6,000 stores and 2,000 front warehouses was more likely to penetrate into the various life scenarios of users. Suning.com's omni-channel actions, both online and offline, brought a substantial increase in performance. From June 1st to 18th, 6 p.m., the number of omni-channel orders increased by 133% year-on-year. Home appliance orders increased by 83% year-on-year, and FMCG orders increased by 245%. Suning.com even made a big move after the "June 18 Shopping Carnival": At the end of June, it acquired 80% shares in Carrefour China, becoming its controlling shareholder. On the one hand, this acquisition was a squeeze on the development space of its old offline rival Gome (which just announced a strategic cooperation with Carrefour in April this year). On the other hand, Suning.com further improved its offline format. Before the acquisition of Carrefour China, Suning.com's FMCG offline format was mainly "Suning Small Stores" in the form of community convenience stores. Having a comprehensive business format of Carrefour not only enables Suning.com's offline format to be more diverse and infiltrative, but also helps to grant the more efficient retail power to the existing offline format through the integration of Carrefour's supply chain system.