BUSINESS

Analysis: E-Commerce Giants Extend Midyear Sale as China’s Consumption Slump Drags On

Published: Jun. 11, 2025 5:18 p.m. GMT+8

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Established players like Alibaba and JD.com are also facing fresh competition from Meituan. Photo: AI generated

China’s major e-commerce platforms have extended their promotional campaigns for the country’s annual midyear shopping festival, as they grapple with weak consumer spending and rising competition from smaller rivals like Meituan.

Alibaba Group Holding Ltd.’s Taobao and Tmall platforms kicked off their “618” presales on May 13, a week earlier than last year, extending their campaigns to June 20 for a total of 39 days. Similarly, JD.com and Pinduoduo also stretched their events to 39 days, compared to 21 days and 33 days in 2024, respectively, according to local media.

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China's major e-commerce platforms extended their "618" shopping festival promotions to 39 days due to weak consumer spending and increased competition.
Online retail sales of tangible goods in China reached over 13 trillion yuan in 2024, a 6.5% increase year-on-year, slower than 2023.
Meituan's instant retail business tripled its GMV year-on-year in the first 24 hours of 618, with spirits sales increasing 70-fold.

AI generated, for reference only

Who’s Who

Alibaba Group Holding Ltd.: Alibaba Group Holding Ltd. extended its "618" presales for Taobao and Tmall platforms to 39 days, starting May 13. This move aims to counter weak consumer spending and rising competition. Alibaba's dominance is challenged by companies like Meituan, especially in fast-moving categories, leading to increased pressure on supply chains and service models.

Taobao: Taobao, Alibaba's e-commerce platform, extended its "618" shopping festival presales earlier this year, lasting 39 days. This aims to manage logistics and allow consumers more time. However, smaller merchants face challenges due to intensified competition and thin margins, leading some to experience decreased sales. Taobao, alongside Tmall, is also experiencing increased competition from platforms like Meituan.

Tmall: Tmall is one of Alibaba Group Holding Ltd.'s major e-commerce platforms. It participates in China's annual mid-year shopping festival, "618," with promotional campaigns. Tmall, along with Taobao, kicked off its 2025 presales earlier than in 2024, extending its campaign to 39 days. While large brands find success on Tmall, smaller merchants face challenges due to intensified competition and thin margins from deep discounts.

JD.com: JD.com is a major Chinese e-commerce platform that participated in the extended "618" shopping festival. Its promotional campaign for the event now spans 39 days, an increase from 21 days in 2024, to combat weak consumer spending and rising competition. JD.com, alongside Alibaba and Pinduoduo, traditionally dominated the e-commerce landscape but is now facing increased pressure from new competitors like Meituan, particularly in fast-moving consumer goods.

Pinduoduo: Pinduoduo is a major Chinese e-commerce platform that, alongside rivals like Alibaba and JD.com, extended its "618" shopping festival promotions to 39 days in 2024. This extension aims to ease logistics and allow more decision-making time for consumers. Pinduoduo is feeling increased competition from newer entrants like Meituan.

Meituan: Meituan is a Chinese e-commerce platform that has recently entered the 618 shopping festival, traditionally dominated by competitors like Alibaba and JD.com. Primarily known for food delivery, Meituan is expanding into "real-time retail," offering discount vouchers for various goods, including groceries, electronics, and liquor. This expansion has led to significant growth in its instant retail business, tripling its GMV year-on-year in the first 24 hours of its 618 campaign. Meituan's competitive arrival is "shaking up" the e-commerce landscape, particularly impacting fast-moving categories.

Eleme: Eleme is an Alibaba-owned delivery service in China. It is experiencing pressure in fast-moving categories like groceries and over-the-counter drugs due to increased competition from rivals like Meituan, which is expanding its real-time retail services.

AI generated, for reference only

What Happened When

2023：: Growth rate of online retail sales of tangible goods in China was 8.4%.

2024：: Online retail sales of tangible goods in China surpassed 13 trillion yuan ($1.8 trillion), up 6.5% year-on-year.

Before May 2025：: A Taobao homeware seller reported that May 2025 sales fell from over 70,000 yuan to just above 50,000 yuan year-on-year.

May 13, 2025：: Taobao and Tmall kicked off their '618' presales, a week earlier than the previous year.

May 28, 2025：: Meituan joined the 618 campaign by selling discount vouchers for takeout, electronics, and offering limited-time offers on liquor.

Early June 2025：: A representative of a top consumer packaged food brand stated their Tmall store’s cumulative GMV had already surpassed the entire 618 period of the previous year.

AI generated, for reference only