Those exciting innovators caught the eye because of their pioneering business sense, and gradually withdrew from the stage due to a lack of cash flow as well as the proficient supply chain management ability.
As the clock struck 12:00 a.m., 618 Shopping Festival (started from June 16 to June 18) drew the curtain in silence. Alibaba, who incubated the e-commerce dominating players (Taobao and Tmall) and created Singles Day shopping festival, joined the e-commerce campaign this June with JD.com, Sunning, Pinduoduo, three biggest archrivals in this field.
After the first hour of June 16, Tmall's general merchandise volume (GMV) surpassed the full-day performance last year. Apparel sales increased by over 266% year-on-year, with men's and women's wear GMV broke CNY 100 million in 2 minutes and 7 minutes respectively. Big home appliances sector spent 90 minutes to break the whole day's GMV record in 2018, while the time for small appliances to break last year’s record is only four minutes. In addition, Tmall's cosmetic sales increased by more than 70% year-on-year. Among them, the growth rate of eye cream and essence category was as high as 192% and 134%.
As a tradition and a strategy to better compete in the home field of JD.com (618 Shopping Festival is created by JD.com), Tmall only disclosed its total GMV record on Singles Day and keep the 618 results undisclosed. However, with the published information, we see an exciting uptrend in the consumer market. The “100 million club”, which refers to those online brands reached a GMV for over CNY 100 million during the 618 Shopping Festival period, surged to more than 110 members for the first time. Among them, domestic brands accounted for 60% of the total, covering electronics, apparel, food, cosmetic and other industries.
This article selected 20 consumer brands that get hot not only in 618 campaign but also during the recent period of time:
In 2007, when Internet and online shopping first appeared in the public eye, nearly no brands who own brick-and-mortar stores pay attention to this new way of consumption. Opportunities had come to e-commerce hitchhikers who merely operated as a third party to connect manufacturers and consumers. During that period of time, more than two hundreds of Tao Brand (淘品牌) in Taobao emerged. They easily grew to companies with million-scale GMV and completely shocked the traditional players.
Tao Brands rode the first wave of Internet benefits.
However, those exciting innovators catch the eye because of their pioneering business sense, and gradually withdrew from the stage due to a lack of cash flow as well as the proficient supply chain management ability. More importantly, most Tao Brand handed over both upstream and downstream to outsourced manufacturers and e-commerce platform respectively, therefore lost control over the industry chain.
Less than twenty of the original two hundred Tao Brands survived, the rest gave way to the traditional manufacturers and brick-and-mortar companies who waked up in time and caught up with online opportunities.
More than ten years later, the new brands keep emerging from Tmall, JD.com and even some social media platforms such as Douyin and Red. Have those brand evolved to new species in terms of manufacturing, supply chain management and marketing or they are merely another generation of “Tao-Brand”?
Further analysis to be continued.