linkfluence china ecommerce 6.18 festival report

SocialMediainChina

The“6.18”EcommerceFes2val

2016StrategicResearchReport

Online shopping

fes.vals are an

integral part of

Ecommerce in

China. In addi.on

to Tmall’s “Singles

Day”, JD has also

spearheaded its

“18th June”

shopping spree.

The 6.18 Ecommerce Fes.val

ReportSummaryThisreportexplainskeyfiguresaboutthe“6.18”Ecommercefes2val,illustrateswhichEcommercecompaniesareleadingintermsofsalesandsocialmarke2ngresults,andprovidesexamplesofsocialmediatac2csusedduringtheevent.

Contents•  WhichEcommerceStoresareLeading?•  OverviewofMarketShare•  OverviewofOnlineBuzz•  ADeeperLookIntoSocialMediaTac2cs•  Implica2onforBrands•  HowtoGetMoreFreeReports

AboutLinkfluenceWehelpbrandsunderstandconsumers,improvedigitalperformance,trackthecompe22on,andprepareforcrisis,onglobalandlocalsocialmedia.ThisreportwasmadebytheLinkfluenceResearchteamusingRadarly,Linkfluence’sreal-2mesocialanaly2cssoYware,pullingdatafrom300Msocialnetworks,media,websites,andmobileapps.

WHICHECOMMERCEPLATFORMSARELEADINGINTERMSOFSALES?

MarketShareofLeadingEcommercePla\ormsPar2cipa2ng

In2010,JDestablishedthe6.18shoppingcampaigntocelebrateitsanniversary.

In2016,thisshoppingspreesnowballedtotop9B2CeCommerceplayersinChina,whichrepresentalion’sshareof93.8%combined.*

LeadingEcommercePla@ormsbySales

SALES

B2C Market share in Q4 2015

JD.com

Tmall

VIP.com

Suning

Gome

Dangdangwang

Yihaodian

Amazon.cn

Jumei

* Source: Analysys China B2C online sales market share of Q4 2015

5

Thisyear’s6.18campaignisabadlechampionedbythegiantsJDandTmallJDledintermsofsalesvolumegrowth2016with60%increaseinorderstoover100Munits.

SALES

6

KeyMetricson6.18Versus11.11EcommerceFes2vals

Fes2valName

6.18 11.11

FoundingCompany

Jingdong Tmall

DateFounded

1998 1997

LatestFes2valRevenues-Total

100millionordersfrom1stto18thJun2016(60%growthover2015)

Notdisclosed

LatestFes2valRevenues–Eventdayalone

Notdisclosed 91.217billionRMBon11thNov2015

Fes2valName

6.18 11.11

JDs2llleadsbutTmalliscloseintermsofmarketshare

48.6

34.1

5.8 5.2 4.81.1 0.5

44.6

39.6

5.32

7.6

0.7 0.3

49.8

40.2

2.81

4.40.8 0.7

JD Tmall Suning Gome YHD Dangdang Amazon

3C/appliances Dairy Personalcare/Beauty

Xiao Mi: Brand leader in JD and Tmall’s 6.18 2016 campaign ü  No. 1 mobile phone sales volume ü  No. 1 smart hardware sales volume ü  No. 1 brand of smart wearables in sales volume, posi.ve

comments and search volume

Ecommerce Players’ Market Share of Actual Sales in 618 Campaign in 2016 (in %)

SALES

7

Source: Syntun (vip.com and jumei.com not monitored)

8

WHATDOCONVERSATIONSTELLUSABOUTTHE6.18ECOMMERCEEVENT?

Socialengagementpeakedbeforetheshoppingspree,notduringoraYerBuzz Trend of 618 Online Shopping Campaign in 2016 (20th May – 30th Jun)

S

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

05/01

05/04

05/07

05/10

05/13

05/16

05/19

05/22

05/25

05/28

05/31

06/03

06/06

06/09

06/12

06/15

06/18

06/21

06/24

06/27

06/30

246m

TOTALREACH

6.15b

TOTALIMPRESSIONS

93.2k

TOTALBUZZVOLUME

9

6.18

SOCIALBUZZ

Weiboiss2llthedominantpla\orm,andmostlyinlargeci2esCHARTS

Weibo led plaaorms with a slightly female skew. Beijing and large .er 2 cites were dominant ci.es.

SOCIALBUZZ

Blog:0.21% Website:4.15% Forum:17.03%Media:1.12% Weibo:77.18%

Nega2ve:0.25% Neutral:96.96% Posi2ve:2.56%

Sen2mentofPosts

GenderSplitofPublishers

Base: 71,979 buzz out of total 93,261

Females:55.63% Males:44.37%

2,696

2,371

2,088

1,753

1,308

Chengdu Beijing Shenzhen Hangzhou Wuhan

Top5Ci2esinBuzzVolume: SocialMediaPla\orms:

10

Expectedly,the“redpacket”mobilecampaigntac2cwasmostpopularCHARTS

JD’s incen.vized tac.c to share red packets was popular, as most people understood it and were willing to share with friends.

SOCIALBUZZ

JD’s 6.18 red packet party

REACHIMPRESSIONSPOSTSTOPCONVERSATIONS

2.59k 64.8k 354 //@ :

//@天猫:

…

61.9k 1.55m 463 @

#618#…

58.0k 1.45m 700 #618 #

>>>hip://t.c…

2.79k 69.8k 872 我竟然是“ ”

618@ hip://t.cn/R5x…

10.9k 274k 1.68k 我竟然是“ ”

618@ hip://t.cn/R5x…

11

Whilefan-buildingandloyaltycon2nuedtobeakeypriorityCHARTS

Tmall’s Fan’s Carnival (#Tmall618FansCarnival) on Weibo resulted in 1 billion page views and 0.57 million discussions.

SOCIALBUZZ

MOSTCOMMONLYMENTIONEDWORDS

美国(1,152) #618

(11,364) #

(777) #

(718) (790) (1,656) (734) 广州(973) 北京市 海

淀区(619) 北京(1,742) #618

(1,708) (628) 中国(3,603) 上海(986) (915) @ (1,156) #

618(1,005) @ (7,798) #

618(913)

12

ThehighestoverallsocialvisibilityresultedfromTmall’skickoffcampaignCHARTS

Tmall’s contents of 618 campaign announcement resulted in broader awareness.

SOCIALBUZZ

Impression : 38,139,332 | Reach : 1,525,573

27

#618 #

06/01/2016 @ – 38,139,332

Impression: 50,669,243 | Reach : 2,026,769

IP5

月25日14 # # 天猫618

05/25/2016 @ – 50,669,243

Impression : 50,029,928 | Reach : 2,001,197

hip://t.cn/RyyXkBT“

” [嘘]#618#

06/02/2016 @ – 50,029,928

@TopNews: #Tmall Global Fans Economy Summit and #Tmall 618 Fans Carnival are about to start

13

14

THELEADERS-JDVERSUSTMALL:Howdidtheirstrategiesdiffer?

JDandTmallemployeddifferentstrategiesCHARTS

JD focused on straight forward promo.ons and 3C products , while Tmall focused on loyalty and fashion and beauty products.

STRATEGIES

DURATION 23rd May to 20th June 2016

(29 days)

25th May to 19th June 2016 (26 days)

THEME ‘Quality Carnival’ ( ) ‘Fans Carnival’ ( )

CATEGORIES Focus on 3C products (computer, communica.on, electronics)

Focus on apparel and beauty

STRATEGY Mobile-centric and sales-driven, Easy to understand promo.ons, Prac.cal benefits

Focus on CRM and loyal users, Awareness focus with low engagement

TACTICS CEO endorsement, Celebrity endorsement, Live broadcast (Douyu

), Push for mobile shopping (coupon games on WeChat JD page ‘ 618

’, in mobile QQ mall ‘ ’)

Internet stars, Celebrity-fan engagement, New technology (Danmaku ‘ ’, H5, virtual reality), Live broadcast (Douyu

, Tmall Live ), TV (Hunan Satellite)

15

JDtargetedconsumersbytheircategoryofinterestCHARTS

JD defined 4 different product categories for consumers to plan thier purchases.

STRATEGIES

5.23-5.31 6.1-6.6 6.7-6.9 6.10-6.13 6.14-6.17 6.18-6.20

KICK OFF 3C APPLIANCE FMCG FASHION ALL

16

JDalsotargetedconsumersbylifestyleCHARTS

JD defined 8 different consumer segments to target.

STRATEGIES

JD’s618FESTIVALCONSUMERSEGMENTS:Pe2tbourgeois

Supermom/dad

/ Familyguy

Sportsfan

Artyyouth

Crea2velover

Shoppingaround

17

Tmall’sstrategyreliedonexclusivityandCRMtoretainheavyshoppersTmallusedCRMdatafromits400+millionuserstoprovideexclusivebenefitstoTmallmembersincoopera2onwith220+brands:

Loyaltypointsvalidforbothonline&offlinepurchases

Superbdealssuchastrialofproductsatpriceof1RMB

ExclusiveaccesstoofferswithextragiYsuponpurchase

STRATEGIES

18

19

FOCUSONTACTICSPART1:PromoVonsandSocialGames

JDreliedheavilyontradi2onalcouponingandpricepromo2ons

Despitenoobviouslyengagingcontentmarke2ngonWeiboorWeChat,JDSupermarketsoldover25millionproductsinlessthan24hourson18thJune,relyingmostheavilyontradi2onalsalestac2cs.

TACTICS

20

Toincreasesales,JDini2atedthe“stockbrandsupfor1yearatlowprice”campaign,withover3millionpar2cipants.

‘Cashredpackets’weresentouteverydayduringcampaignperiod.Allcouponsanddiscountsreachedover1billionRMBinvalue.

JDalsofocusedheavilyonmobile,withcampaignstarge2ngtheyoungAseriesofmobilecampaignswereintroducedonWeChat&mobileQQ,resul2nginthefollowingkeyfigures.

160%increaseofnewusersonmobileQQandWeChat

85%wereplacedviamobileshoppingchannels

72%ofmini-campaignuserswereunder29yearsold

TACTICS

21

Duetoit’slowbarriertoentry(justclicktovote),5.7millionpeoplepar2cipatedinthe“StarWars618”campaign,invi2ngfriendstovotefor17celebri2es’,whoshowoffoftheirpurchases( ).

ExampleofTwoCampaigns“Star Wars 618” and “Crazy 6 Minutes 18 Seconds”

“Crazy6mins18seconds”forsharingcouponstoget35milliondiscountcoupons.

ForPCusers,Tmall’suseofACG&Danmaku*createdextraexcitementCHARTS

More than 3 million users par.cipated in the Danmaku ac.vity.

TACTICS

22

TmallencouragedWeibouserstocreate618relevantcontentsbycomple2ngthesentencestar2ngwith:“618TmallFansCarnival…”Oncecompleted,Danmaku( )createdbyotherne2zensappearedonthePCscreen.

ThesamewouldhappenwhenWeibouserssearchedkeywordslike‘Tmall’,or‘618carnival’onPConthe31stofMayand1stofJune.

(Tmall’sparentcompany,Alibaba,isashareholderinSinaWeibo)

* ACG: Anima.on, comic & game. The ACG culture is originated from Japan. Danmaku ( , literally bullet curtain or curtain fire) is a Japanese term for "barrage”, as in a barrage of bullets.

Tmall’s“PKofPointofViews”campaigngeneratedvisibility,butfailedtoengageStar2ngMay30th,Tmallsharedatopicforuserstovoteanddebateupondaily.Tworelevantbrandswouldbefeatured.

Whilethesetopicsreceivedover10millionpageviews,thenumberofrepostsandcommentsweremerelyhundreds.

Thecampaignappearedeffec2veingenera2ngvisibilityforTmall’s618campaign,buttherewerefewclearbenefitsforpar2cipants.

TACTICS

23

ExampleTopic:MideavsLeshi

“Doyoureadapplianceownermanuals?”

“Doyoulether(yourbaby)lookatyourmobilephone?”

1,419,300viewsand732comments(.05%)

1,142,000viewsand131comments(.01%)

VS

24

FOCUSONTACTICSPART2:CelebrityandKOLEndorsement

JD’s“Superbrandsuperbirthday”used30brands&theirspokespeopleCHARTS

This campaign resulted in high awareness, with more than 16.5 million page views on Weibo.

TACTICS

25

MakeabirthdaywishonWeibo VoteonJD’swebsite

FromJune5thto20th,usersvotedfortheirfavoritecelebrityinordertogetlowpricesonflashsales.

JD’s“Superbrandsuperbirthday”used30brands&theirspokespeopleCHARTS

550,000 ne.zens voted for the top 10 most popular celebri.es.

TACTICS

26

Tang Yan, spokesperson of TCL, topped the chart of popularity by votes, while “Liile fresh meat” ( ) male celebri.es Li Yifeng, Yang Yang, and Chris Wu also ranked high in popularity.

Spokesperson Brand Votes

TangYan TCL 63,230

YangYang Ariel 61,085

ChrisWu DELL 56,399

LiYifeng OLAY 56,214

YuQuan Ninebot 55,004

JellyLin Mengniu 53,769

WallaceChung Ecovacs 52,706

LinChi-lin HelenKeller 51,944

LiuTao Maxchic 51,429

FishLeong Franic 51,336

Tmallusedcelebri2estorallyforits618campaign,allinonevideoCHARTS

Korean stars were more popular than mainland China celebri.es, especially A-list stars like Song Joong-ki and EXO.

TACTICS

27

TmallInterna2onal’scelebrityrealityshow“GoFigh2ng”andZhangYixingpaidoffZhangYixing,acorememberofKoreanbandEXO,andoneofthecelebri2esfeaturedinthisrealityshow,hadahugeimpactonthesuccessofthecampaign.

One#YixingbuybuybuypostbyZhangYixingledto220,000repostsand60,000comments.

70%ofinterac2onswereexpressionoflove,admira2on,oraffinityforZhangYixing.

1/3ofpostsmen2onedTmall,whoapparentlymadeasmartchoiceworkingwithZhang.

TACTICS

28

29

FOCUSONTACTICSPART3:LiveBroadcast

JDandDouyujoinedforcesforthe“LobsterBadleNight”campaignOnJune17th,from21:00-24:00,5hostsdemonstratedhowtocooklobsterin5differentways,resul2ngin:

5millionvideoviewsofhosts’livevideos

200,000+currentuserswatchingatpeak2me

500%growthofJDFreshGroceries’vslast618campaign

88%ofJDFreshgroceriespurchasedviamobile

TACTICS

30

JD’s5hoststookthechallengetocook,eat,anddiscusseverythingaboutfreshlobsterinthe30-minuteliveshow

CHARTSTACTICS

31

Mu’er160,415DouyuFollowers

Wujin315,637DouyuFollowers

Zuola260,989DouyuFollowers

Fantong249,520DouyuFollowers

Duoduo637,822DouyuFollowers

One-thirdofpostsmen2onedtheywouldbeinterestedinpurchasinglobsterfromJDaYerwatchingthisliveshow.

CHARTSTACTICS

32

“IwanttobuylobsterfromJDandwatchthebroadcastonthespot!”

“I’minterestedinthisac@vityandwanttoeatlobsterwhilewatching”

TmallranalivebroadcastduringItaly’sMens’FashionWeekfeaturingTaiwanesemoviestarJiroWangTmallpar2cipatedin6-daylivebroadcastofTmallandaround10malefashionbrandsfromItaly’spremiumfashionshowPizUomo.

UserscouldplaceordersforsuitswhilewatchingTmall’slivebroadcast.

Theconversionratewasclaimedtoreach20%(viewershipunknown).

TACTICS

33

Ne@zenslookedforwardtothislivebroadcast

34

WHATABOUTOTHERSTORES?GomeCaseExample

Gomeusediconic“bigcharacterposters(

)”toadackTmallandJDdirectly

Comparedto2015:

428%increaseintotalvolumeofonlineorders

536%increaseintransac2onvalueincreased

650%increaseintransac2onsonmobile(72%oftotal)

TACTICS

35

Scarystepsofshopping(JD)

Hiddentrapsofshopping(Tmall)

Cat(Tmall)anddog(JD)

Gome’spostersmimickedcommunistpropagandafromthe1950s,usedtocri2cizeenemiesbyrevealingtheirbadbehaviors.

36

EXAMPLEBRANDACTIVITIESEsteeLauderandSKII

EsteeLauderranalivebroadcastonTmallAPPwithVictoriaSongashost

EsteeLauderinvitedcelebrityVitoriaSongtodeliveraliveshowonTmallAPP.

CouponsandEsteeLaudergiYpacksweresentoutduringtheliveshow,anduserscouldgrabascreenshotoftheliveshowtogetdiscountwhenbuyingthisproduct.

Nearly1/3ofthosewhoretweetedexpressedpurchaseintent,andmanyusersmen2onedtheproduct’sdetoxingbenefit.

TACTICS

37

Besidesshowingpurchaseinterest,consumersevenpostedtheimagesoftheirnewlyboughtEsteeLauderproductsasawaytosupport.

Click to see original content

SKIIsent3,000virtualrealityglassesviaitsTmallVRlabcampaign

FansreceivedVRglasseswithpuchase,andcontentaboutSKIIfacialtreatmentessence.

SKIIgainedover160,000followersandwas#1inTmallsalesofpremiumskincarecategoryduringthe6.18period.

TACTICS

38

ReceivedVRglassesandcommentedaboutthembeingapremiumgadget

ComparedpersonalexperiencesusingtheSKIIVRglassesvs.IMAX

39

HOWTOPARTICIPATE?LessonsforBrands

Keylessonsfrom6.18

40

THINKMOBILEFIRSTMobileisaprimarymediumforinternetaccessandonlineshopping,andshouldbecarefullyconsideredupfront.

Campaignmechanismsshouldbemademobile-friendly,withlowentrybarriersforeasypar2cipa2on.

HowcanbrandsusesocialmediatoimproveEcommerceperformance?

TARGETTHERIGHTPLATFORMSDemographicsandageskewshouldbeconsideredwhenchoosingsocialmediachannelswithacleardefini2onofwhethertargetsareprimarilyintop2erorlower2erci2es,andwhichpla\ormsaremostusedineacharea.

BESIMPLEANDENTERTAININGAsafundamentalcontentrule,videosandhumoraregreattoolstodeliveramessagethatcantriggerbroadsharingamongtargetaudience.

Alwaysremembertobeon-equityandconsistent.

LINKBENEFITTOMECHANISMChoiceofmechanismshouldalwaysreflectconsumerbenefit,withoutwhichconsumerswilllackacalltoac2on.

Theseconsumerbenefitscouldbebothfunc2onal(e.g.pricediscount)oremo2onal(excitement,fun,newexperiences).

INFLUENCERSAREKEYWhilenotallbrandshavetheluxuryofworkingwithcelebri2es,it’sworthconsideringotherop2ons,likeworkingwithhostsonlivebroadcastpla\ormsorinternetbloggerswhoaremostrelevanttothecategory.

Linkfluence www.linkfluence.asia contact-asia@linkfluence.com @linkfluence