Wenjing Liu, managing partner of Genuine, was interviewed by Internet World on the rise of social commerce
The shopping festival 618 in China was organized by JD.com, one of the largest online retailers in the country. It serves as an indicator of the country's mood and the global development of e-commerce. Due to lockdowns and pandemic measures, there were significant drops in e-commerce sales in the first months of the year, especially in April and May. Supply chains were affected by regional lockdowns, leading to a decline of up to 40 percent in some e-commerce categories on platforms like Tmall and JD.
During this year's 618 Shopping Festival, lockdown restrictions eased, resulting in a 10 percent increase in sales for JD compared to the previous year. However, growth was weaker compared to the previous year, yet achieving any growth was still a challenge.
The 618 Shopping Festival is the most significant shopping event in China after the Singles Day on November 11th. However, Alibaba chose not to publicly disclose revenue figures. Other platforms like Douyin (TikTok) and Kuaishou are gaining market share against Alibaba platforms. Douyin experienced a 40 percent increase in livestream hours and achieved strong revenue growth compared to the previous year.
Expert Wenjing Liu predicts a progressive diversification of the e-commerce ecosystem in China, moving away from Alibaba's platform dominance toward a more diverse approach. This could also have an impact on Germany, as trends from China might be gradually implemented there, such as a heightened integration of commerce features on social media platforms.
Lockdowns in China have largely been lifted, but precautionary measures remain, such as regular PCR tests and restrictions on large gatherings.
Read the full german article with our managing partner, Wenjing Liu, on Internet World
Genuine is a leading Shanghai-based agency that specializes in bridging brands and Chinese commerce. We provide hassle-free, responsive, and dependable services to facilitate a swift entry and soft landing into the complex Chinese market. With our team of digital natives and extensive expertise in China, we offer a holistic approach to long-term brand building and strong ties to local sales channels.
