Core Insights - Tmall's 618 event has introduced a new "full reduction" discount model, simplifying the shopping experience for consumers and enhancing the appeal of promotions [2][4][10] - The event has seen significant growth in sales, particularly in home appliances and 3C digital products, with a year-on-year increase of 283% in transactions for categories benefiting from national subsidies [1][9] - The focus on quality and simplicity in promotions reflects a shift in consumer expectations, with brands needing to adapt to these changing demands to remain competitive [2][5][12] Group 1: Promotion Strategy - Tmall's 618 event has implemented a "full reduction" model, allowing for direct discounts rather than complex coupon systems, which has been well-received by consumers [2][4][6] - The event has seen 217 brands achieving over 100 million in sales, indicating strong consumer engagement and spending [1][9] - The introduction of national subsidies has further enhanced discount offerings, with some categories seeing discounts of up to 20% [7][9] Group 2: Consumer Behavior - Consumers are increasingly prioritizing service quality and simplicity over minor price differences, indicating a shift in purchasing criteria [5][12] - The 88VIP membership program has proven effective, with members contributing significantly to sales, highlighting the importance of targeting high-value consumers [6][12][15] - The trend of consumers gravitating towards brands that offer quality and innovation is evident, as seen in the performance of various brands during the event [10][12] Group 3: Market Trends - The overall quality of consumer goods in China has been on the rise, with consumers willing to pay for better quality rather than just lower prices [12][13] - Tmall's strategy includes supporting high-quality brands and innovative products, which is expected to drive long-term growth and consumer loyalty [10][13][15] - The entry of numerous overseas brands into the Chinese market reflects the growing demand for specialized and high-quality products among consumers [11][12]

Core Insights - The article emphasizes the importance of capturing the young consumer market as a key to future business success [1] - The trend of "paying for happiness" is driving new business opportunities, particularly in underexplored market segments [1] - The recent upgrades to Taobao's "Cool City" IP reflect a strategic move to attract young consumers and stimulate growth [3][22] Group 1: Market Trends - There is a noticeable shift towards niche hobbies and activities among young consumers, such as camping, skiing, and unique collectibles [1] - The "Cool City" IP has expanded its categories to include not only sports and outdoor activities but also trendy products appealing to younger demographics [3][22] - Young consumers are increasingly viewing outdoor activities as social currency, with significant annual spending on outdoor sports [24] Group 2: Business Growth - Merchants who joined the upgraded "Cool City" have reported substantial sales growth, with some experiencing a 50% increase in transaction volume shortly after joining [7] - The platform's support, including enhanced visibility and traffic incentives, has led to improved conversion rates and customer engagement for new merchants [9][21] - The "Cool City" initiative is part of a broader strategy by Taobao and Tmall to support quality brands and drive significant growth in the sports and outdoor sectors [11][22] Group 3: Consumer Demographics - The primary consumer base for brands like "Sound Speed Cat" and GRC is predominantly young, with a significant portion aged between 15 and 18 [24][25] - GRC's target demographic spans a wider age range, primarily focusing on middle-class consumers aged 25 to 45 [24] - The characteristics of young consumers include a strong inclination to share their purchases on social media and a preference for products with social and emotional value [24][25] Group 4: Strategic Implications - The upgrades to "Cool City" are seen as a critical strategy for Taobao to enhance its appeal to younger consumers and foster a vibrant online community [22][28] - The initiative aims to create a more diverse product offering, including trendy and unique items that resonate with younger audiences [27][28] - The competitive landscape is intensifying, with brands leveraging the "Cool City" platform to differentiate themselves and capture market share [20][21]

Core Viewpoint - Tmall's 2025 strategy emphasizes supporting high-quality, original brands rather than spreading resources evenly across all brands, indicating a shift towards fostering innovation and creativity in the brand ecosystem [1][5][12]. Group 1: Strategy Implementation - The new strategy was not abruptly introduced but was piloted in the fast-moving consumer goods, apparel, and sports outdoor sectors for several months, showcasing data results to brand partners before a broader rollout [4]. - Tmall's support for original brands includes extending the incubation period for new products from 30 days to 90 days and doubling the number of supported new products from 4,000 to 8,000 [14][19]. Group 2: Current Brand Ecosystem - The current brand ecosystem is characterized by a decline in innovation, with a 3% decrease in new cosmetic product registrations in 2024 compared to 2023, and a 14.6% drop in new products from major international cosmetic brands in China [7]. - Many mature brands have relied on retail channel efficiency rather than product innovation, leading to a decline in their competitive edge and market share [8][9]. Group 3: Tmall's Competitive Advantage - Tmall's strategy aims to leverage its high repurchase rates and user engagement, with 90-day repurchase rates averaging 15% across industries and 30% for member users [18]. - The platform's focus on expanding user purchase categories and enhancing member benefits is designed to create a closed-loop system that maximizes value for both Tmall and brands [19]. Group 4: Market Trends and Future Outlook - The trend towards supporting original brands is expected to create significant growth opportunities, with 469 emerging brands achieving top sales in niche categories during the 2024 Double 11 shopping festival [26]. - Tmall's commitment to fostering original brands is anticipated to lead to the emergence of innovative brands capable of creating new market segments [27].