China’s e-commerce giants, led by Alibaba and JD.com, kick off promotions for midyear 618 shopping festival

China’s major e-commerce service providers, led by rivals Alibaba Group Holding and JD.com, have kicked off promotions for the annual 618 shopping festival, offering steep discounts and various measures to support online merchants amid the nation’s faltering economy.

The midyear retail gala, which began in 2004 as a simple sales promotion by Beijing-based JD.com to celebrate its June 18 founding anniversary, has since become the country’s second-biggest shopping festival after Singles’ Day, which Alibaba had turned into an annual retail extravaganza in 2009. Alibaba owns the South China Morning Post.

JD.com and Pinduoduo started their 618 presales programme on May 23, while Alibaba began its presales campaign on May 26. The presales period allows consumers to make a deposit, which guarantees a low price, on goods they want to buy from an e-commerce platform ahead of the start of 618 sales.

This year’s edition of the 618 shopping festival is expected to serve as a barometer to measure consumer spending nationwide, as extended Covid-19 lockdowns across the country have taken a heavy toll on livelihoods and consumption, putting many people out of work, shuttering businesses and suppressing both supply and demand.

“Ensuring the stability of supply chain and logistics amid the uncertainties is the best way to improve consumption sentiment and foster a more positive environment for business operations,” Alibaba chairman and chief executive Daniel Zhang Yong said during the company’s latest quarterly earnings call last week.