| The second half of mega-sales is about product launches, not discounting
During the first phase of the 618 festival, over 40,000 brands doubled their transaction volumes on Tmall, and the number of new products surpassing 10 million yuan in sales grew 60% year-on-year. More critically, new products claimed one-third of the top 100 best-selling items. Discount promotions and new product launches are two sides of the same 618 coin. This signals an irreversible shift: the core value of mega-sales events is moving from inventory clearance to momentum building. Brands still treating 618 as a dumping ground are falling behind those using it as a launchpad.
| 62.5 billion yuan in national subsidies reshapes the price battlefield
The 2026 618 features 62.5 billion yuan in national trade-in subsidies stacked on top of platform red packets, with single-item savings up to 1,500 yuan. The price war has escalated from platforms subsidizing out of pocket to government-level stimulus. For brands, this means lower customer acquisition costs but fiercer competition — every category has national subsidy support, and consumer choice logic has shifted from which is cheaper to which has the bigger subsidy.
| Rational consumption forces brands from promotion-driven to product-driven strategies
China discount retail market has surpassed 1.5 trillion yuan with annual growth exceeding 12%, yet penetration stands at just 3.5%. Some 86.9% of consumers have purchased discount or near-expiry products, and 49.8% do so proactively. This is not downtrading — it is a structural upgrade in consumption rationality. Brands must confront an uncomfortable truth: when discount retail becomes the norm, what makes your full-price product worth buying? The answer is newness, exclusivity, and experience — not discounts.
| Action items for brands
First, redefine 618 from discount season to new product season — new launches should command at least 50% of campaign resources. Second, deeply understand national subsidy rules: electronics and home appliances get up to 1,500 yuan per item, a policy window that will not last forever. Third, full-price products must have differentiated narratives — in an environment of rising discount retail penetration, brands without uniqueness will be dragged into price spirals.
Data Credibility
Sources: Tmall official 618 report, JD 618 campaign rules, discount retail industry analysis
Period: June 2026
Method: Platform official data + cross-verification
FAQ
What does the rising share of new products in 618 mean for brands?
The core value of mega-sales has shifted from inventory clearance to momentum building — brands must make new product launches the strategic center of their campaigns.
How does the 62.5 billion yuan national subsidy affect brands?
It lowers purchase barriers but homogenizes price competition, pushing brands toward differentiation rather than low-price strategies.
How should brands price products amid consumption rationalization?
Full-price products need irreplaceable differentiated value, while discount products must maintain sufficient margin to sustain channel operations.
Why is 618 entering its second half?
New products now occupy one-third of top items — the competitive logic has upgraded from price wars to product power battles.
How can brands maintain full-price sales as discount retail penetration rises?
Through exclusive new products, differentiated experiences, and brand narratives that justify premium pricing, while accepting discount channels as a strategic tool for volume-price separation.
Sources
- The Other Side of 618: New Products Seize Attention
- JD and Tmall 618 Final Push
- 2026 Discount Retail Industry Deep Analysis
