E-commerce platforms shift strategies for Double 11 shopping festival

The annual Double 11 shopping festival has commenced, marking a shift in strategy for major Chinese e-commerce platforms. As traditional discount-driven growth faces challenges from slowing retail sales, companies are pivoting toward service-based revenue and sophisticated merchant incentives.

JD.com has launched its promotional period early, offering red envelopes that can be used as cash. Meanwhile, Alibaba's Tmall and ByteDance's Douyin are focusing on direct price reductions and official subsidies. A significant trend this year is the integration of AI to manage advertising, guide shoppers, and determine subsidy levels based on merchant investment.

Platforms are increasingly competing for merchant budgets through advertising-linked subsidies. For example, Alibaba uses AI to distribute coupons based on marketing intensity, while JD.com offers ROI guarantees through its 'Steady Profit Plan.' Content-driven platforms like Douyin and Xiaohongshu are also intensifying their efforts to convert social media engagement and 'seed planting' into direct transactions through improved search and shopping interfaces.