The company’s unaudited consolidated results reflect a significant surge in revenues, operating profit, and user engagement metrics, underscoring its dominant position in the digital economy.

A robust start to 2024

In Q1 2024, Kuaishou reported revenues of RMB 29.4 billion, marking a 16.6% increase compared to the same period in 2023.

This growth was accompanied by a notable rise in gross profit, which reached RMB 16.1 billion, up from RMB 11.7 billion in Q1 2023, reflecting a gross profit margin of 54.8%.

The company’s operating profit soared to RMB 3.99 billion, reversing the operating loss of RMB 698 million from the previous year.

Strategic initiatives driving growth

Kuaishou’s strategic initiatives have been pivotal in driving its growth. The company’s innovative traffic recommendation mechanism, enhanced monetization strategies, and robust e-commerce operations have all contributed to its strong financial performance.

In Q1 2024, Kuaishou rolled out a new traffic recommendation mechanism, aligning user experience improvements with increased monetization efficiency.

This strategy has attracted higher buyer budgets and boosted the company’s e-commerce business, which grew by 28.2% year-over-year to RMB 288.1 billion in GMV.

Financial highlights

Kuaishou’s financial metrics paint a picture of robust growth and strategic success. The company achieved an adjusted net profit of RMB 4.39 billion, a staggering increase from RMB 42 million in Q1 2023.

The adjusted EBITDA also saw a significant rise, reaching RMB 5.98 billion, up from RMB 1.99 billion in the same period last year. These metrics highlight Kuaishou’s effective cost management and revenue generation strategies.

User engagement and platform growth

Kuaishou’s user engagement metrics have shown impressive growth, with average DAUs reaching 393.8 million, up from 374.3 million in Q1 2023.

Average MAUs also increased to 697.4 million, reflecting the company’s successful user acquisition and retention strategies.

The average daily time spent per DAU on the Kuaishou app was 129.5 minutes, further emphasizing the platform’s ability to engage users effectively.

Kuaishou’s adjusted net profit of RMB 4.39 billion and adjusted EBITDA of RMB 5.98 billion are indicators of strong financial health. The substantial increase in these metrics from the previous year highlights the company’s effective cost management and revenue generation capabilities. Additionally, the significant reduction in administrative expenses by 49.7% year-over-year is a positive sign of operational discipline.

The growth in Kuaishou’s overseas business, with revenues reaching RMB 991 million, up 193.2% year-over-year, and the narrowing of operating losses in these markets, indicates successful international expansion. The company’s localized strategies and investments in content generation and platform optimization are paying off, contributing to overall revenue growth and improved operating efficiency.

The company, a leading internet and technology conglomerate in China, has reported substantial improvements in gross profit and net profit, reflecting its strategic focus on high-quality revenue streams and innovative technological advancements.

Strategic Initiatives and Business Review

Tencent’s latest quarterly results highlight the company’s dynamic approach to growth and innovation. The tech giant has focused on enhancing its core business segments while venturing into new revenue streams, leveraging its technological prowess and market leadership.

In the gaming sector, Tencent continues to solidify its dominance both domestically and internationally. Several flagship titles, including “Fight of the Golden Spatula” and “CrossFire Mobile,” achieved record-high gross receipts. Meanwhile, international hits like “PUBG Mobile” and Supercell’s “Brawl Stars” reported impressive gains in user engagement and revenue, underscoring Tencent’s global appeal in the gaming industry.

The company has also made significant strides in digital content. WeChat Video Accounts saw a dramatic increase in user engagement, with total user time spent rising by over 80% year-over-year.

Similarly, Mini Programs, a staple feature of WeChat, reported a 20% increase in user engagement, reflecting Tencent’s ability to continuously innovate and expand its ecosystem.

Tencent’s advertising sector has benefited greatly from its advancements in AI technology. The introduction of generative AI-powered tools has revolutionized its advertising platform, resulting in higher engagement and more effective ad campaigns. This innovation has been particularly impactful for Video Accounts and Mini Programs, driving substantial growth in advertising revenue.

In the FinTech arena, Tencent’s wealth management business has shown robust growth, marked by a surge in user numbers and average fund investments. Tencent Cloud Media Services, a leader in the media and entertainment sectors, has maintained its strong market position, further demonstrating the company’s diverse and resilient business model.

Operating Metrics

• Combined MAU of Weixin and WeChat: 1,359 million, a 3% YoY increase.
• Mobile Device MAU of QQ: 553 million, a 7% YoY decrease.
• Fee-based VAS Registered Subscriptions: 260 million, a 12% YoY increase.
• Video Accounts Total User Time Spent: Increased over 80% YoY.
• Mini Programs Total User Time Spent: Increased over 20% YoY.

Financial Highlights

Tencent’s financial performance in Q1 2024 reflects its strategic focus and operational efficiency:

• Total Revenues: RMB 159.5 billion ($22.5 billion), a 6% year-over-year (YoY) increase.
• Gross Profit: RMB 83.9 billion ($11.8 billion), up 23% YoY.
• Non-IFRS Operating Profit: RMB 58.6 billion ($8.3 billion), a 30% YoY increase.
• Net Profit Attributable to Equity Holders: RMB 50.3 billion ($7.1 billion), up 54% YoY.

Segment Performance

• Value-Added Services (VAS): Revenue slightly decreased by 0.9% YoY to RMB 78.6 billion, with social networks and domestic games experiencing minor declines, while international games revenue grew by 3%.
• Online Advertising: Revenue surged by 26% YoY to RMB 26.5 billion, driven by increased engagement and enhanced AI-powered ad targeting.
• FinTech and Business Services: Revenue increased by 7% YoY to RMB 52.3 billion, with solid growth in cloud services and wealth management.

Tencent’s first-quarter results highlight its resilient business model and strategic adaptability. The company’s revenue growth, though moderate, is accompanied by a substantial increase in gross profit and operating margin, indicating improved operational efficiency.

Comparing these results with previous quarters and industry peers, Tencent stands out for its balanced growth across diverse revenue streams. The company’s focus on high-margin businesses, such as cloud services and digital content, is a strategic move that is paying off well.

Financial Highlights: A Glimpse into Growth

Tencent’s fiscal narrative for 2023 is one of notable achievements, underscored by a 10% year-over-year growth in total revenues, reaching an impressive RMB609.0 billion (USD86.0 billion).

This expansion is further emphasized by a 23% increase in gross profit, showcasing the company’s enhanced profitability in a fiercely competitive digital marketplace. Furthermore, the non-IFRS profit attributable to equity holders witnessed a substantial 36% increase from the previous year, indicating strong core earnings performance .

The final quarter of 2023 continued this trend, with revenues escalating by 7% year-over-year to RMB155.2 billion (USD21.9 billion), and gross profit and non-IFRS profit attributable to equity holders of the company experiencing significant increases of 25% and 44% respectively.

In 2023, Tencent’s revenue breakdown highlighted the diversity of its business portfolio, with significant contributions from various segments.

The FinTech and Business Services sector emerged as the largest revenue source, representing 31% of the total revenue and amounting to RMB189.0 billion. This segment’s leading position underscores Tencent’s stronghold in the FinTech industry and its successful foray into comprehensive business services.

Following the FinTech and Business Services sector, the Online Games segment was the second-largest contributor to Tencent’s revenue, accounting for 29% and totaling RMB177.0 billion. This demonstrates the continued vitality of online gaming within Tencent’s business model.

The fastest-growing segment in 2023 was Tencent’s Cloud Computing business, which experienced a remarkable 30% year-over-year revenue increase, reaching RMB109.0 billion. This growth outpaced the other segments, notably the Social Networks segment, and underscored Tencent’s effective strategy and execution in the competitive cloud services market.

Overall, Tencent’s 2023 financial performance showcased the strength of its FinTech and Business Services as the leading revenue generator, with the Cloud Computing segment leading in growth, reflecting the company’s adaptability and strategic positioning in China’s evolving digital landscape.

Strategic Endeavors and Innovation

2023 saw Tencent advance through strategic milestones:

Enhancing User Experience: Tencent’s WeChat Video Accounts doubled in user time spent, thanks to improved algorithms and creator support. Additionally, the Mini Games platform’s gross receipts soared by over 50%, reinforcing Tencent’s leadership in China’s casual gaming sphere .

Pioneering in AI: The launch of Tencent Hunyuan, an AI model of a trillion-parameter scale, marks a leap in Tencent’s technological prowess, solidifying its commitment to spearheading digital innovation .

Commitment to Society and Environment: Tencent’s digital philanthropy platform set a new record with RMB3.8 billion raised during the 99 Giving Day campaign, while its New Cornerstone Investigator Program supported 104 scientists, promoting scientific research .

As of the end of 2023, Tencent Music Entertainment Group (TME) reported a notable increase in its music subscribers. The total number of online music paying subscribers reached 90 million, marking an 18% year-over-year growth.

Market Engagement and User Dynamics

Tencent’s operational statistics reveal evolving trends in user engagement:

• The MAUs of Weixin and WeChat stood at 1,343 million by December 2023, a 2% increase year-over-year, highlighting the platforms’ expanding influence in social media .
• Despite a marginal decline in VAS revenues, Tencent’s strategic emphasis on content diversity and innovative services positions it for sustained growth amidst market challenges .

Tencent’s 2023 saga is one of strategic brilliance and financial vigor, positioning it at the forefront of China’s digital transformation. With its commitment to innovation, user-centricity, and societal impact, Tencent is poised to continue shaping the contours of China’s digital future.

Mobile reach in China: Tencent, Alibaba, Baidu, ByteDance, vs. Kuaishou

Douyin live commerce platform is a service platform provided by Douyin for local lifestyle service businesses. It aims to help businesses market and sell their products and services on Douyin.

Short videos were the most popular type of content on the platform, accounting for 83% of total transaction volume. Short video uploads grew nearly 1.4 times, while text content uploads grew 2.68 times.

Douyin Live streaming was also a major growth driver, with transaction volume growing 5.7 times. The number of live streams that generated transactions increased fourfold, and the coverage rate of merchant self-broadcasting reached 59%, with self-broadcasting transaction volume growing 4.45 times.

Daily search volume grew 1.57 times, and transaction volume driven by search grew 2.6 times. The most popular live-streaming content categories were:

• Food: Hot/unique dishes, fast food, hot pot, regional dishes, and bakery and desserts
• Services: Massage and bathing, beauty and fitness, hairdressing, car services, and nail and eyelash art
• Travel: Travel agencies, hotels and guesthouses, theme parks, attractions, and zoos

TikTok also saw significant growth in the number of new service providers and group-buying influencers on its platform. The number of new service providers increased 1.79 times, the number of businesses working with service providers increased nearly two times, and service provider transaction volume grew nearly eight times.

The number of group-buying influencers increased 2.89 times, and over 580,000 influencers earned income from the platform. The total transaction volume of influencers grew more than 2 times, and influencer discovery shopping generated 946 billion yuan in revenue.

Chinese influencer platforms: Weibo, Douyin, Kuaishou, Xiaohongshu

The report revealed a staggering 500% year-over-year increase in the number of merchants, surpassing 100 million yuan in transaction volume, with those breaking the 10 million yuan threshold growing by 380%.

This surge underscores the platform’s rapid transformation into a bustling e-commerce hub.

In December 2023, Xiaohongshu’s COO, Conan, made a public statement that sharply contrasted his stance from five years ago when he firmly believed that Xiaohongshu should not venture into e-commerce.

“Back then, I viewed things from a community perspective. But now, I’m spearheading our e-commerce operations,” he said. This shift follows the platform’s strategic move to integrate its e-commerce and live-streaming businesses into a new transactional division, standing alongside the community and commercial departments.

Xiaohongshu has come a long way since its inception. Within six months of its launch, it introduced an overseas shopping-sharing community.

A year later, it launched an e-commerce platform called “Welfare Society.” By 2016, the platform expanded to include third-party platforms and brand merchants, experiencing rapid growth across various product categories.

However, the platform faced challenges in meeting its Gross Merchandise Volume (GMV) targets in 2018 and 2019.

Interestingly, during this period, its content community business thrived, with user numbers increasing by 100 million from January to July 2019. Consequently, Xiaohongshu shifted its focus to strengthening its community aspect, becoming a favored content community among younger demographics.

For Xiaohongshu, with a daily active user count surpassing 100 million in 2022 and advertising revenues accounting for 80% of total income, diving into e-commerce became an inevitable choice.

The platform’s primary user base has always been female, with women accounting for over 80% of its users as of 2021, and a significant 60% hailing from first and second-tier cities.

This demographic, known for its strong purchasing power and high consumer intent, gave birth to Xiaohongshu’s unique “planting grass” culture.

“Planting grass” refers to the practice of posting various forms of notes on the platform, recommending, sharing, and showcasing personal or brand experiences to influence user purchases. From a marketing standpoint, these recommendations and shares are akin to brand advertising, creating brand impressions in the consumer’s mind.

However, creating a brand impression and driving product purchases are two different challenges.

This disparity led to the “brand up, conversion down” phenomenon, where building brand impressions often requires positive language around beauty, advantages, and greatness, while actual product purchases are driven by discounts, price reductions, and limited-time offers.

In this marketing process, brand building and sales conversion are distinct, typically handled by offline malls, supermarkets, convenience stores, and online platforms like Pinduoduo, JD.com, and Taobao.

Xiaohongshu seemed to have solved this challenge by combining search functionality with buyer-driven sales.

Unlike traditional passive content consumption, searching indicates interest in a product, restaurant, or location. As such, search engine marketing has always been highly effective.

With 70% of its active monthly users engaging in search activities, Xiaohongshu focused on closing the loop from search to e-commerce.

The platform’s shift towards e-commerce is also evident in its move towards buyer-driven live-stream commerce.

For instance, in January 2023, Dong Jie’s live-stream debut on Xiaohongshu generated an estimated GMV of over 50 million yuan. Following her, “Chu Dai Fu” achieved fame with her first live-stream lasting nearly six hours and generating sales over 50 million yuan.

These events marked the entry of celebrities and buyers like “Yi Ke KK” and “Dang Ran Shi Dang” into the live-stream sales arena.

Data from August to November 2023 illustrates the platform’s e-commerce momentum, with two billion-level buyers, 21 million-level buyers, and 20 hundred-million-level buyers emerging within just three months.

During the 2023 Singles’ Day shopping festival, Xiaohongshu saw its e-commerce user count triple and order numbers nearly quadruple compared to the previous year.

The number of merchants participating in the event and the GMV from live streaming increased by over four times, highlighting the enormous potential of buyer-driven e-commerce on the platform.

In conclusion, Xiaohongshu’s strategic pivot towards commercialization, as evidenced by organizational restructuring, live-streaming trials, data collaboration, and open search fields, marks a new era for the platform.

By focusing on search conversion and live-streaming sales, Xiaohongshu caters to its core demographic’s shopping needs and cultivates shopping habits among a broader user base. This evolution from a community-focused platform to a dynamic e-commerce powerhouse underscores Xiaohongshu’s adaptability and growth in the digital era.

Review: Xiaohongshu’s live streaming on Business Accounts

Taobao emerged as a defensive strategy against potential C2C competition from eBay’s Chinese platform, Eachnet​. Taobao’s innovative strategies, such as introducing Alipay to ensure secure transactions, helped it secure a substantial market share.

On the 20th anniversary of its founding, Taobao is set to host the most significant 618 Shopping Festival to date. The festival’s evolution mirrors the transformative growth of e-commerce, driven by platforms like Taobao, which have revolutionized how people shop and interact with retailers.

For 2023, Taobao’s strategy for the 618 Shopping Festival revolves around transforming consumers into creators.

In an era where user-generated content has become integral to online engagement, Taobao aims to elevate the shopping experience beyond a simple transaction. This shift aligns with the broader trend in e-commerce, which has been accelerated by the global pandemic, towards more interactive and personalized shopping experiences.

Regarding impact on China’s economy, the 618 Shopping Festival’s contribution to Alibaba’s total revenue is significant​.

The event has grown exponentially since its inception, reflecting the rapid growth of China’s e-commerce sector. The 2023 edition of the festival is expected to further boost this growth trajectory, given the increased scale and novel consumer engagement strategies planned for this year.

The allure of low prices has always been a critical characteristic of online shopping festivals. However, in recent years, the price war has extended from festival periods to daily transactions, with short-term subsidies transitioning into long-term ones.

This shift has led to debates around the necessity of these online shopping festivals, especially as low prices have become somewhat of a norm in the aftermath of the pandemic.

Yet, low prices often come with certain preconditions or basic requirements. For instance, JD.com’s low prices have traditionally been established on multi-item discounts.

However, this year’s 618 Shopping Festival may improve the quality of service (such as half-day delivery service by Cainiao) and lower the threshold for discounted prices based on purchase quantity.

This approach focuses on the keyword “low price,” enhances service quality, and broadens the customer base. Despite low prices becoming a norm, festival periods offer an upgraded shopping experience compared to ordinary days.

In the current environment, improving the return on investment (ROI) for marketing communications remains a significant challenge for the entire industry. This challenge is primarily due to the broader economic environment, which has led to a trend of consumption downgrade.

The biggest dilemma is identifying target customers and stimulating consumer enthusiasm in challenging circumstances. The difficulties in content creation for product promotion and fulfillment of product promises play a significant role.

While merchants have adopted live streaming and digital marketing, attracting traffic in a fiercely competitive market using forms the audience enjoys is a major challenge.

Another concern is maintaining operations after traffic conversion, such as improving the customer experience (product quality and fulfillment, after-sales service, etc.). The entire process involves a long chain of stages, each demanding high professionalism and the ability to respond flexibly to market changes.

As the 618 Shopping Festival approaches, how should merchants prepare in advance? It is crucial to ensure sufficient preparation for product stock and transport capacity. For product inventory, merchants should rely heavily on data-driven predictions to stock up sufficiently in advance.

This preparation should not only be adequate in terms of quantity but also detailed in terms of warehouse distribution and logistics delivery.

At the end of 2022, during the Double 12 shopping festival, some users received their goods only after a month, leaving a bitter taste about the “express” delivery.

Most major platforms have deployed highly automated and intelligent warehouse logistics systems in key consumer markets. Barring uncontrollable factors such as adverse weather, delivery delays should be less frequent.

The issue during the 2022 Double 12 festival was partly due to the widespread transmission of the pandemic. Given the current state of pandemic transmission, a similar situation is unlikely to occur.

Nevertheless, express delivery companies should prepare and plan equipment maintenance, debugging, and personnel deployment. Platforms and merchants should prepare and plan sufficiently for sales predictions and stock-up.

618 Sales

This year no specific GMV or sales data are released from any major e-commerce platforms in China.

Alibaba Group’s Taobao and Tmall Business Group recorded an unprecedented level of merchant participation in China’s mid-year shopping festival, the 6.18, held from May 26 to June 20, spotlighting positive signs of Chinese consumers’ post-pandemic spending prowess.

Data released by Taobao & Tmall on Monday exhibited a paradigm shift in consumer behavior, particularly a surge in livestreaming viewership and short video consumption.

During the 6.18 festival, the daily average of short video views on Taobao, a consumer-to-consumer marketplace, increased by 113% from the previous year. Daily short-form video releases from influencers and Taobao merchants have increased by 200% and 55%, respectively, year over year.

Moreover, the festival witnessed a 139% year-over-year increase in content creators initiating livestreaming on Taobao. Consumers’ viewing time on the app doubled, demonstrating the growing influence of digital content in the e-commerce landscape.

The Gross Merchandise Value (GMV) of merchants reportedly swelled two to three-fold year-over-year. A total of 305 brands achieved sales above RMB 100 million ($13.99 million) just after the stroke of midnight on June 18.

Additionally, over 2.56 million small- and medium-sized enterprises (SMEs) outperformed last year’s festival, with 1.18 million SMEs each surpassing a GMV of RMB 10,000.

The festival also shed light on new consumer trends, with items like watersports shoes, suitcases, and sunscreen masks being the hot favorites. Around 180,000 customers purchased watersports shoes, while suitcases and sunscreen masks were snapped up by 1.65 million and 930,000 people, respectively.

Apple, which held a rare livestream and offered discounts on its products, including the iPhone 14 Pro and Apple Watch Series 8, saw their broadcast attract 1.3 million viewers and collect 300,000 likes within the first hour.

In this year’s 6.18 shopping festival, video-sharing platform Bilibili saw a surge in its e-commerce advertising revenue, which jumped by more than 400% year-on-year.

Product promotion is becoming a new revenue growth engine for both Bilibili and its content creators, with the number of promoters more than tripling compared to last year’s 6.18.

As the consumption and transaction ecosystem thrives, the number of promotional videos on the site has increased nearly eightfold year-on-year, while the number of promotional livestreams has grown almost 7.5 times over the same period.

During the 6.18 period on Bilibili, the number of content creators who received orders from advertisers through Huahuo increased by over 40% year-on-year.

According to data from the “Spark Program,” which is linked to the Taobao Union (Taobao’s affiliate program), in industries such as home decor and cosmetics, Bilibili accounted for more than 70% of new customers for merchant shops.

Zhihu, a Chinese question-and-answer website, saw a 155.1% year-on-year increase in queries related to “how to choose products.” By the end of May, the volume of content related to “618” on Zhihu had increased by 272% month-on-month, while search volume had risen by 240% over the same period.

Alibaba Tmall Double 11 Shopping Festival

Alibaba Group kicked off its Tmall Double 11 Shopping Festival 2021 on 20 October 2021. This is Alibaba’s 13th annual Double Eleven shopping festival in China with an emphasis on sustainability and inclusiveness.

This year marks the largest Double 11 Festival to date, with a record 290,000 brands participating. Alibaba Tmall is offering more than 14 million deals to over 900 million consumers in China. Double 11 2021 will once again have two sales windows – the first will be from November 1 to 3, and the second will be on November 11, on the day of the main event.

Livestreaming will be a key consumer engagement mechanism for brands and merchants to build awareness and drive sales. Starting on October 20 throughout the Festival, Taobao Live will feature 700 leading KOLs, celebrities and brand representatives in livestream sessions.

In addition, Taobao will roll out a new feature for users to share their “shopping cart” items with friends and family, creating a more social shopping experience.

Taobao app introduced an option for “senior mode“, a new feature designed to make the user interface more accessible for senior citizens.

It offers voice-assisted technology, simplified navigation, larger font size and icons. The app homepage also offers games for elderly users to unlock special discounts for groceries, making the experience more engaging for the silver generation.

Consumers are encouraged to share their “Goods for Good” purchases with their friends and family, and Alibaba will make a RMB1 donation for every successful social media share.

Launched in 2006, Alibaba’s “Goods for Good” program enables merchants to donate a portion of their sales to charitable organizations of their choice, while consumers can support their favorite charitable causes through their purchases.

The donations from this year’s Double 11 Festival will provide support to three major beneficiary groups: elderly citizens living in solitude, “left-behind children” in remote areas and low-income workers.

Tmall Double 11 Pre-sale

At 8 p.m. on October 20, Tmall Double 11 officially opened the pre-sale. This year, Tmall’s Double 11 will collectively discount 14 million products, of which all the popular products in 1000 brand flagship stores will be subsidized to 50%.

According to Taobao live streaming data, Li Jiaqi, one of the top anchors, listed 439 products on the evening of October 20. The cumulative transaction value of the live broadcast room is as high as 11.5 billion yuan, and the estimated sales volume is 37.71 million.

In addition, the maximum sales volume of a single product was 1.8777 million yuan, the maximum sales value of a single product was 389 million yuan, the average customer purchase was 306 yuan, and 2.83 million new followers.

Another top influencer Viya started live streaming at 12:55 on October 20, with a cumulative live streaming duration of 14 hours and 28 minutes. The total sales reached 8.533 billion yuan and the average customer purchase was 317 yuan.

There are 499 products listed and the estimated cumulative sales volume is 26.89 million. The maximum sales volume of a single product is 605,600, and the maximum sales value of a single product is 490 million yuan.

Alibaba Tmall Double 11 Sales/GMV

In 2021, Alibaba’s Tmall Double 11 shopping festival achieved a new record of US$84.54 billion in gross merchandise volume.

More than 2.5 million consumers purchased green products on Tmall. Tesla, for example, sold more charging stations for its electric cars within the first minute on November 11 than it had during the entire festival last year.

JD Double 11

Presales

On October 20, the 2021 JD”s Double 11, Singles Day Grand Promotion, began with the pre-sale rolling in at 8 pm. The number of customers who placed orders within the first four hours increased by nearly 40% compared with the first day of the pre-sale in 2020.

The first order delivered by JD’s on-demand “Shop Now” service was swiftly fulfilled within only 10 minutes.

According to JD, an increasing amount of young people joined the pre-sale as consumers aged 18-35 accounted for over 70% during the pre-sale period. Since many brands also opened pre-sales at 8 pm, they swiftly shattered the pre-sale record set on the first entire day of the pre-sale last year.

This shopping enthusiasm was fully ignited across China. Within the first four hours of the pre-sale, Guangdong, Jiangsu, and Beijing took the top 3 in order amounts; and when it comes to the product category, large appliances took the lead, followed by phones, sports shoes and bags, and facial care products.

Haier ranked the most popular brand out of all the large appliances during the pre-sale period, and Siemens came after.

On computers and digital products, hardware devices for education purposes came out strong.

Xiaomi, Huawei, and OPPO were also among some of the highly popular tech products, as the pre-sale order volume for Xiaomi phones in the very first hour exceeded that of the first entire day last year.

Within the first four hours of the pre-sale, order amounts of OPPO phones this year increased by 227% YoY.

This Singles Day, JD provided e-CNY (CBDC) red envelopes for users in 11 cities including Beijing, Shanghai, Shenzhen, Dalian, Xi’an, Chengdu, and more, in collaboration with China Construction Bank (CCB).

Users located in these cities, who have never opened an e-CNY account, can search “e-CNY” on JD’s app to get access to the activity page. The red envelopes can be used on JD’s e-commerce app to purchase first-party products.

JD Double 11 Sales

JD.com reported a record-breaking Singles Day Grand Promotion on November 12, 2021, with transaction volume totaling RMB 349.1 billion yuan at midnight of November 11, ending the 11-day promotion that started from 8 pm on October 31.

The transaction volume of 31 brands surpassed RMB 1 billion yuan with Apple surpassing RMB 10 billion yuan.

Users from lower-tier markets account for 77% of all users for JD’s Singles Day Grand Promotion this year. JD has seen rapid growth of consumption from these markets in the categories of home appliances, medicine, and home decoration.

For example, the transaction volume of dishwashers and sweeping robots increased 2 to 3 times, with some smart home appliances even increasing 5 to 10 times.

Over 100,000 customers used e-CNY on JD’s app during the promotion period.

Xiaomi

During November’s Singles’ Day Shopping Festival, Xiaomi and Redmi brand smartphones together ranked No.1 in sales volume on Tmall.com, JD.com and Suning.com. The Group’s premium smartphones also ranked No.1 among Android smartphones priced above RMB4,000 on Tmall.com and JD.com.

In addition, during the shopping festival, the total sales volume of Xiaomi’s smartphones from its offline channels increased by more than 110% year-over-year.

Dossier: Double 11 (Singles Day)

Net income attributable to HUYA Inc. was RMB524.4 million (US$81.4 million) for the third quarter of 2021, compared with RMB253.0 million for the same period of 2020.

Non-GAAP net income attributable to HUYA Inc. was RMB180.0 million (US$27.9 million) for the third quarter of 2021, compared with RMB361.2 million for the same period of 2020.

The average mobile MAUs of Huya Live in Q3 2021 increased by 14.7% to 85.1 million, from 74.2 million in the same period of 2020. The total number of paying users of Huya Live in the third quarter of 2021 reached 6.0 million, compared with 6.0 million in the same period of 2020.

China eSports market overview and forecast