HTSC·2025-10-23 11:17Investment Rating - The report maintains an "Overweight" rating for the internet sector, specifically recommending "Buy" for JD Group and Alibaba [6]. Core Insights - The 2025 Double Eleven shopping festival is characterized by three key trends: extended promotional timelines, the introduction of flash sales as a new fulfillment method, and accelerated application of AI in e-commerce [1]. - The competition among platforms remains intense, with a focus on acquiring market share through early promotional activities and enhanced discount strategies [2][10]. - The integration of flash sales into the Double Eleven event marks a significant shift, combining local and distant e-commerce to create new consumption scenarios [3][16]. Summary by Sections Promotional Strategies - The promotional period for Double Eleven has been extended, with platforms like Taobao and JD increasing their event durations compared to 2024 [9][10]. - Discount strategies have evolved, with platforms moving from cross-store discounts to simpler direct discounts, aiming to enhance user experience and reduce return rates [12][13]. Flash Sales and AI Integration - Flash sales have been introduced for the first time in Double Eleven, with both Taobao and JD leveraging local retail partnerships to improve delivery efficiency [3][19]. - AI tools are being heavily invested in by platforms, with various applications aimed at enhancing user experience and operational efficiency for merchants [4][20]. User Engagement and Membership Benefits - Membership programs like Taobao's 88VIP and JD's PLUS have seen increased benefits, with significant discounts and exclusive offers aimed at retaining core users [14][15]. - The number of active users on both Taobao and JD has shown notable growth, attributed to the introduction of flash sales and enhanced promotional activities [20][26]. Merchant Support and Policy Changes - Platforms are lowering entry barriers for merchants, with initiatives to simplify the onboarding process and reduce operational costs [31][32]. - There has been a contraction in commission-free policies compared to previous years, indicating a shift towards a more balanced approach to profitability and merchant support [33].