Tmall Q2 results saw the Chinese 6.18 Mid-Year Shopping Festival rewarding 120 brands on the marketplace with £11 million (RMB100 million) in sales, highlighting the demand for branded products amongst Chinese shoppers.
The Chinese-born marketplace today announced the second trading quarter results ending on the 30th of June 2019, which saw Tmall merchants and brands gaining a sufficient wallet share. Gross Merchandise Value (GMV) swelled up by 34% year-over-year (YoY), compared to last year’s financial results.
Tmall attributes the sales growth in goods to the “increased number of users and average spend, reflecting strength in fastmoving consumer goods (FMCG), apparel, consumer electronics and home furnishing categories.”
In June 2019, Tmall experienced their largest yet 6.18 Mid-Year Shopping Festival in scale and reach. During the promotional period from the 1st of June to the 18th of June, Tmall GMV sales soared up by 38% on the YoY basis.
Tmall say the promotional event saw robust consumption demand that supported solid sales and greater penetration into less developed areas for brands and merchants.
The marketplace’s might is expected to grow as China’s digitally addressable population will expand by 35% from 503 million to 678 million by 2023, representing a continued growth opportunity for Tmall.
Tmall are capitalising on the way that China’s large rural population shop, where ecommerce is fast becoming a way of living. However, as mobile penetration reaches its peak and this market clearly is not limitless, Tmall is following a diverse investment strategy to ensure continued growth.
The second-quarter growth underscores the ecommerce giant’s position to maintain retail dominance in China as a welcoming platform for merchants and brands.