Alibaba and JD.com See Sales Boost During 618 Festival, Thanks to Government Subsidies

This year’s 618 shopping festival in China has started strong, with Alibaba and JD.com reporting a noticeable rise in sales—especially in categories supported by government subsidies. The 618 event, which originally began as a promotion for JD.com’s anniversary, has become one of the biggest online sales periods in China, second only to Singles’ Day in November.

Preliminary data from Taobao and Tmall Group (TTG), Alibaba’s main domestic platforms, reveals that sales of government-subsidised items jumped by 283% during the early checkout period from May 13 to May 26. This is in comparison to the same phase during last year’s Singles’ Day. The most popular items include consumer electronics and home appliances—categories directly targeted by China’s national subsidy programme.

JD.com has also experienced strong demand during the 618 period, although exact figures from their end have not yet been published. However, both companies seem to be benefiting from a broader strategy: supporting consumer spending through subsidies at a time when China’s domestic economy is still finding its footing post-pandemic.

The government’s involvement appears to be making a difference. By offering financial support for key consumer categories, the aim is to encourage households to spend more on big-ticket items. And the early numbers suggest that this effort is working—at least in the e-commerce sector.

From a logistics and seller point of view, festivals like 618 aren’t just about flash discounts. They are complex operations involving supply chain readiness, coordinated marketing, and smooth checkout processes. Sellers on Taobao and Tmall need to prepare weeks in advance to meet demand and remain competitive during this high-traffic period.

At DMSMatrix, we understand how important it is for sellers—especially those working across borders or managing stock in China—to stay organised and responsive. Our tools like DMSTrack and DMSDrive help simplify inventory and shipping during peak seasons like 618. When subsidy-backed demand surges, a clear logistics strategy can make all the difference between a missed opportunity and a record-breaking sales day.

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