Core Viewpoint - Tmall's 618 shopping festival this year adopts a simplified discount mechanism, offering direct reductions of 15% to 50%, which enhances consumer experience and maintains price competitiveness [2][4][18]. Group 1: Changes in Discount Mechanism - Tmall has shifted to a single discount model for 618, eliminating complex "full reduction" strategies, making it easier for consumers to understand and participate [2][5]. - The direct discount approach is seen as a return to the original mission of e-commerce, which is to provide the simplest and cheapest options for consumers [2][4]. - This change comes after years of complex promotional strategies that exhausted consumers, leading to a preference for straightforward discounts [5][6]. Group 2: Performance Metrics - On the first hour of the 618 sale, 43 brands achieved over 100 million in sales, marking a more than 50% increase compared to the previous year [3][4]. - Tmall's parent company, Alibaba Group, reported a 9% year-on-year revenue growth in the most recent quarter, indicating a positive trend in long-term value strategies [3][12]. - The overall sales growth during the 618 event reflects a successful transition to a more consumer-friendly discount model, with significant increases in brand engagement and sales volume [7][16]. Group 3: Strategic Focus on Quality Brands - Tmall is focusing on supporting high-quality and innovative brands, moving away from a one-size-fits-all approach to promotions [12][14]. - The platform has implemented measures to boost new product launches, with significant increases in the number of new products and their sales performance [14][16]. - Tmall's strategy emphasizes the importance of brand innovation and quality over mere price competition, aiming to create a sustainable growth model [18][24]. Group 4: Market Trends and Future Outlook - The e-commerce industry is witnessing a shift from short-term promotional tactics to long-term value creation, as platforms seek to enhance consumer trust and brand loyalty [20][24]. - Tmall's approach to simplifying promotions and focusing on quality products is expected to set a precedent for the industry, encouraging other platforms to follow suit [25]. - The ongoing evolution in consumer behavior and preferences indicates that the market is ready for a more straightforward and value-driven shopping experience [17][24].