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Smart Device Sales Beat Predictions at 618 Shopping Festival
June 26, 2018 | IDCEstimated reading time: 3 minutes
Sales of smart devices sales exceeded expectations at the recently concluded 618 annual shopping festival as majority of the products posted double-digit growth, led by laptop sales, according to figures from IDC. More than 1 million units of smart bands were sold, making it the bestselling smart devices during the annual shopping festival.
IDC quarterly smart device tracker report predicts earlier that the sales of PCs, tablets, smart phones and other products with displays would drop in 2018. Despite such concerns, the results in this year’s 618 shopping festival beat expectations.
Similar to previous 618 shopping festivals, the promotional period prompted fierce competition between platforms and brands, with all sorts of discounts being offered. Generally speaking, the pecking order of the platforms remained the same, with JD leading the smart device market and Tmall close on its tails. JD is particularly strong in laptops and desktops, which accounted for 83% and 93.2% of its total sales respectively.
Established brands continued to dominate the top 3 positions in the market, with Lenovo leading the PC market through extremely high sales, closely followed by Dell. Other brands such as AOC, Huawei and Xiaomi also increased their market share, particularly in the laptop segment, which they have recently entered. Major manufacturers looked to defend and increase their market shares through offering attractive and competitive pricing, which was a main driver of the impressive growth in the laptop market amid overall stagnation.
In regard to consumers, due to an ageing population, the demographic of 45 years old and above now have the strongest purchasing power. Despite this, data from IDC shows that those between 26 and 35 are still the driving force in online shopping.
In the last few years, there has been a digital migration to online shopping from those born in the 1960s and 1970s, which has been reflected by the increase in participation from this age group at this year’s 618 shopping festival. Consumers over 45 years old accounted for 8% of the total in the PC product category this year, which was twice as many as two years ago. Geographically, there was a greater sales increase in tier-4 to tier-6 cities than in tier-1 to tier-3 cities, especially in terms of smart device product purchases.
In regard to consumers, due to an ageing population, the demographic of 45 years old and above now have the strongest purchasing power. Despite this, data from IDC shows that those between 26 and 35 are still the driving force in online shopping.
In the last few years, there has been a digital migration to online shopping from those born in the 1960s and 1970s, which has been reflected by the increase in participation from this age group at this year’s 618 shopping festival. Consumers over 45 years old accounted for 8% of the total in the PC product category this year, which was twice as many as two years ago. Geographically, there was a greater sales increase in tier-4 to tier-6 cities than in tier-1 to tier-3 cities, especially in terms of smart device product purchases.
“The JD 618 shopping festival has continuously delivered growth in revenue since its launch in 2010. It has now become one of the two major shopping carnivals in China, the other being the Double 11 shopping festival,” IDC comments. IDC believes that as consumers upgrade enters the next phase, or the so-called 2.0 stage, e-commerce platforms should make the shift from focusing on price-based strategies to offering enhanced user experiences, solutions and cultivating greater recognition of their brands.”
About IDC
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. To learn more about IDC, please click here.
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