(Yicai) June 21 -- Sales on Chinese e-commerce platforms slumped during the 618 online shopping bonanza this month, as intense rivalry squeezes profits and forces companies to seek new strategies in order to stand out.

The gross merchandise volume on Chinese e-marketplaces tumbled 7 percent during the festival, which ran from May 20 to June 18, from a year ago to CNY742.8 billion (USD102.3 billion), according to statistics from Big Data service provider Syntun.

Sales at the biggest e-commerce platforms Tmall, JD.com and Pinduoduo sank 6.9 percent year on year to CNY571.7 billion (USD78.7 billion). But that of livestreamed e-commerce platforms Douyin, Kuaishou and Diantao jumped 12 percent to CNY206.8 billion (USD28.4 billion).

The disappointing sales were largely due to cheap prices already being available online before the gala began. This meant that to lure buyers, platforms had to slash prices even more and aggressively offer discounts. This led to conflicts between merchants and platforms.

JD.com was accused by Xiron Group and other book publishers on May 31 of disrupting market order with overly low prices. And Fang Jianhua, founder of a top women’s clothing brand on Taobao, called on government authorities on June 13 to crack down on the e-retailer’s “mandatory delivery insurance.”

Some companies decided not to take part in the shopping festival. A food producer chose to scale down its presence on Pinduoduo and Douyin after the two e-retailers unveiled a price comparison function this year, squeezing profit margins even further.

But there were newcomers that found ways to make money. Bag maker Kalayang logged a 76 percent jump in turnover this year from the year before thanks to its tactic of selling school bags before the peak season of July and August. By marketing its bags as gifts in June, Kalayang was able to warm up demand and avoid the logistics crush in July and August.

Editor: Kim Taylor