New domestic startups selected foreign and local brands from hundreds of categories at this month’s “6.18” e-commerce marketing event, according to data from a major e-commerce platform.
A total of 459 brands that have been in the market for less than three years gained sales in their segments on Tmall.com in the first 15 days of June, according to the e-commerce platform, which is owned by Alibaba Group Holding Ltd.
Promotion 6.18 focuses on June 18 but typically runs for weeks. Many of this year’s top performers have come from domestic startups targeting the changing tastes of young Chinese consumers, including those who make life easier.
One category cited by the platform was sweeping robots, where Guangdong-based Narwal Intelligence Technology (Dongguan) Co. Ltd., founded two years ago, beat out former US company iRobot Corp. in the first place.
Ecovacs Robotics Co. Ltd. (603486.SH), a maker of robotic floor and window cleaners, has overtaken sales of floor cleaners that can sweep, mop, and sanitize, making them popular during the pandemic.
“We believe that domestic and foreign brands are on a relatively equal competitive footing, as most new consumer trends have been driven by domestic culture rather than foreign cultural inputs,” said He Peibin, analyst. at Ping An Securities Co. Ltd. , in a Wednesday report.
He predicted that emerging industries – especially cosmetics, medical beauty, new snacks and beverages – will maintain rapid growth.
China’s new youth-focused brands have proven to be attractive to private equity investors. In April, Yuan Qi Sen Lin (Beijing) Food Technology Group Co. Ltd., a company that produces sugar-free soda that is very popular among teens and young adults, announced that it had entered into a new round of funding that valued the company at around $ 6 billion.
This year, Tmall.com did not disclose its overall sales and orders related to 6.18, which evolved from the June 18 anniversary of Alibaba rival JD.com Inc., but has since become a cross-platform marketing event. JD.com said its own trading volume topped 305.6 billion yuan ($ 47.4 billion) from June 1 to June 18 at 2 p.m., up 13.5 percent year-on-year. ‘other.
The business event was a beacon of hope amid weaker overall consumer spending that held back China’s economic recovery from the Covid-19 pandemic. In May, retail sales nationwide grew 12.4% year-on-year, short of the 14% target predicted by economists in a Bloomberg survey.
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