Taobao Flash Sale has ignited a consumption surge after launching a 50 billion yuan subsidy program on July 2, with initial results demonstrating robust momentum. Data shows the platform propelled 4,124 restaurant brands to record-breaking sales volumes within the first week, while 2,318 non-restaurant categories doubled their order volumes. Overall non-restaurant orders surged 143% compared to the service’s launch period, signaling a structural shift in consumer demand.
The platform’s diverse inventory and accelerated fulfillment are meeting evolving shopping scenarios. Searches for “air conditioners” jumped 220% as summer temperatures climbed, creating a boom in appliance deliveries. Orders for air coolers and fans multiplied over tenfold since July, with mosquito nets spiking 600% as households placed overnight purchases.
Daily active users (DAU) reached 200 million by early July, translating digital traffic into physical footfall for merchants across China. The subsidy program doubled the number of cities exceeding one million daily orders within seven days, unlocking deep-seated urban spending capacity.
Underpinned by new consumption models, daily orders exceeded 80 million for the first time. This growth catalyzed a 100% expansion of China’s aggregate daily order volume – from 100 million to 200 million orders in two months – accounting for 60% of total market gains. Resource integration and targeted subsidies are rapidly scaling market capacity.
Unleashing Multi-Sector Merchant Growth
Since launching in May 2025, Taobao Flash Sale has merged Taobao, Tmall, Ele.me, and Fliggy’s capabilities to create an omni-channel ecosystem. This infrastructure now delivers tangible benefits: 140,000 new non-restaurant physical stores joined in two months, while over 210,000 existing stores doubled their orders.
Daily orders now surpass 80 million, with non-restaurant counterparts topping 13 million and accounting for 16% of volume. Participating brands are prospering – orders for 3,724 non-restaurant chains doubled from pre-launch volumes.
Market leader Wanchen Group illustrates the acceleration. Its portfolio, including brands like Hao Xiang Lai and Lai You Pin, grew to nearly 2,000 physical stores after joining in June. On July 5, the group’s orders leapt 922% week-on-week, with subsidiary Hao Xiang Lai multiplying orders hundredfold.
Catalyzing Service-Led Consumption
Service consumption is becoming China’s critical economic driver. Taobao Flash Sale leverages e-commerce traffic density and Ele.me’s logistics to expand merchants’ service radius, creating novel revenue streams. Restaurant chains achieved 190% weekly order growth post-subsidy, while SMEs grew 120%.
Quanzhou braised-soup chain Xun Tang recorded 111% weekly order growth following the subsidies. “This acceleration fundamentally advances our brand development,” stated its manager. “We’re raising our 2025 franchise target from 60 to 100 locations.”
“Service consumption already generates more jobs than consumer goods manufacturing,” noted Li Daokui, Director of Tsinghua University’s China Economic Practice and Thinking Center. “This 50 billion yuan initiative could catalyze at least 100 billion yuan in incremental spending.”
The platform also amplifies event-driven consumption. During Jiangsu province’s July 5 soccer matches, evening snack orders doubled across 10 cities. “Platform innovation creates multiplier effects,” said Peng Lihui, Vice Chairman of China Electronic Chamber of Commerce. “By absorbing costs instead of pressuring merchants, Taobao establishes a ‘rising tide lifts all boats’ mechanism that may ignite broader consumption – genuine subsidies without complex conditions show clear efficacy.”
Original article, Author: Tobias. If you wish to reprint this article, please indicate the source:https://aicnbc.com/4305.html
