1、RE-HUB COMPASS6.18 FESTIVAL ANALYSISJune 2023Introduction to 6.18The 6.18 shopping festival in China is the second largest online shopping event(after singles day/11.11)that takes place annually.The festival was first created by JD.com,one of Chinas largest e-commerce platforms,in 2010 to celebrate

2、their anniversary.Since then,many other platforms also join in the festivities.The festival is a popular time for new product launches,and many brands offer exclusive deals during this period.In recent years,the 618 festival has become an important way for e-commerce companies to boost sales and pro

3、mote their brands in China.Within luxury,it is often the more premium side of the pricing spectrum that plays a heavier role during 6.18 with many of the higher priced brands taking a more backseat role.Timeline of 6.18-2023Presales Wave 1:May 26th 14:00 20:00Presales Wave 1:Full PaymentMay 31st 20:

4、00-June 3rd 23:59Presales Wave 2:June 4th 00:00 June 13th 23:59Presales Wave 1:Deposit PaymentMay 26th 20:00 May 31st 18:00Presales Wave 3/Official Sales:June 14th 00:00 June 20th 23:59Presales Wave 3:WarmupJune 14th 00:00-June 15th 23:59Presales Wave 3:Official SalesJune 15th 20:00-June 20th 23:59P

5、resales Wave 2:June 4th 00:00 June 13th 23:59Trends What went onSlow but Steady GrowthThe Premium SqueezeEarlier DiscountsThe overall revenue for all brands we track on compass grew in low single digits year on year.While growth is seen it may not be in line with overall expectations for the China m

6、arket recovery.Comparing the brands at higher price points vs low price points we saw more effective growth at the top end.Many staple lower end brands that typically perform well during 6.18 saw significant decline YonYBy May 25th last year there was an average discount rate of items on discount(32