Momentum in new format, tech & products at 618 event

Research evidence excerpt

Momentum in new format, tech & products at 618 event

24 June 2026

Mizuho Securities Equity Research Strategy / Equity

Asia Equity Strategy

E-commerce players rush to break away from price wars

Senior China Equity Strategist: Sharp GMV growth for new retail format during 618 shopping

Shenshen Wang festival

+81 3 6202 8480 Despite reductions in government subsidies and the cancellation of subsidy

shenshen.wang@mizuho-sc.com campaigns by e-commerce companies, total gross merchandise value (GMV)

still grew 4% YoY during China’s annual 618 shopping festival this year. In

2025, the shopping festival saw double-digit growth in GMV thanks to Chinese

government subsidies and coupons distributed by e-commerce companies

and manufacturers, but this also contributed to heightened price competition.

As Chinese authorities crack down on over-competition among e-commerce

platforms (see China economy and stock market weekly [12 June]), the

atmosphere of excessively fueling consumer activity cooled this year, and the

more subdued environment was reflected at general e-commerce platforms

Tmall and JD.com. Their combined GMV for general e-commerce came to

CNY863.6b, roughly flat from CNY855.6b in 2025. The main driver of GMV

growth was a new retail format called “on-demand retail”. This instant service

enables consumers to order through a mobile app and have products delivered

to their homes in less than an hour, and it remained popular this year, with

GMV for the format up a sharp 112.3% YoY. In contrast, the popularity of “joint

buying,” which grew rapidly during the pandemic lockdown, declined for the

second straight year, with GMV down 39.6% YoY. E-commerce companies

are focusing on new promotional strategies in an effort to move away from

price competition.