Oct 27, 2020|
Super Buyers Drive Up Big-Ticket Auctions on JD during Singles Day Promotion
by Vivian Yang
Over 200 million items have been sold on the legal auction section of JD Auction since October 21st, when the pre-sales of this year’s Singles Day grand promotion kicked off. So-called “super buyers” bid huge on big-ticket auction items, refreshing the common understanding of what an online shopping festival can offer.
On Oct 22nd, the court of Longhua district of Shenzhen city auctioned factory buildings of a local company for RMB 59 million yuan. After 195 rounds of bidding, the auction concluded at RMB 160 million yuan, which amounted to a 180% premium rate.
The next day, the Intermediate Court of Zhuhai city in Guangdong province listed 49% stock rights of a local company for auction. Because of its popularity, the bidding process was prolonged for 2 hours and eventually concluded at RMB 260 million yuan, an extra RMB 100 million yuan raised above the starting price.
Similar auction spectacles are becoming more common on JD Auction. The platform has also facilitated the auction of China’s first civil airline LJ Air at RMB 800 million yuan, and the auction of Huihe Highway in Henan province at RMB 380 million yuan.
JD Auction has now established direct connections with near 2,000 courts at different levels in China as well as 35 customs for legal auction facilitation.
The courts and customs‘ favor towards JD’s online auction platform is mainly attributed to their rising needs for more diversified channels to handle legal cases involving assets, as COVID-19 has affected the traditional offline channels this year, especially for big-ticket items such as commercial buildings and stock rights. At the same time, JD Auction created an effective and fair auction environment for all the parties involved, with upgraded services such as legal consultations. All these helped to attract more bidders to take part in online activities, making legal assets execution easier for the courts.