Is China to revive consumption? 618 festival suggests this

The latest shopping festival in China, which concluded on Wednesday, pointed to a receipt in consumption, as e -commerce companies reported strong sales of consumer electronics, in addition to beauty products and pets.

The 618 festival is one of the largest promotional year in China Ali Babaand JD.com And other major Chinese e -commerce platforms spread discounts.

This year, the value of the total goods of the festival, a measure of sales over time, increased by 15.2 % from last year to an estimated 855.6 billion yuan ($ 119 billion), according to what he said. SYNTUN Retail.

This indicates some recovery in consumption, after the SYNTUN data for the 618 festival last year revealed a decrease on an annual basis in sales For the first time in eight years. However, as was the case with other annual shopping events, retailers expanded the promotional period to start May 13, a week before 2024, before the end of June 18.

However, JD.com said that the number of participating shoppers has reached a record height, and more than twice on an annual basis between May 30 and June 18 to an unspecified number. More than 2.2 billion requests have been registered via JD channels, which include online and connected stores, food delivery and fast trade, According to retail stores.

Investors were surprised on Monday, a better increase than expected by 6.4 % in national retail sales in May since last year-the fastest increase since December 2023, according to official data accessed through wind information.

“A lot of money on outer clothes. The company helps foreign brands – such as Vitamix which is clinical – online sale in China and other parts of Asia.

His company estimates that the value of the total goods during 618 grew by about 14.1 % from last year, noting a slightly slower increase than the Syntun mentioned.

He also referred to Increasing numbers of customers outside the major cities known in ChinaBased on the packages he saw leaving his company’s warehouse.

Similarly, Chinese e -commerce giant Ali BabaT Atobao and TMAL reported strong sales in qualified categories to obtain government subsidies – with initial sales more than three times from the same period at the shopping festival on November 11, indicating an increase in the consumer’s interest in the latest batch of subsidies.

Tawoboo Tobu Tobo Tobo has also strengthened sales. The company said earlier this month that the image feature to the video and an advanced marketing bidding model has strengthened the return on investment in the campaign by 12 % on average. This repeats how Ali Baba and other major Chinese companies Consumer sales were improved in the first quarter, Partly reinforced by the AI’s market marketing tools.

Shoppers also explode their pets. Taobao and Tmall noticed an increase in demand for pet welfare products, as the total sales in the first hundred minutes exceeded the total sales from the first four hours of the same period last year.

But despite strong sales, the e -commerce festival in the middle of the year lost some steam in the end after some Chinese regional governments have exiled money to continue to provide commercial subsidies, Chinese media reported Thursday.

“We believe that the upgrade of June 18 this year could have been stronger, if the commercial support program remained intact,” Numora analysts said in a memorandum on Thursday.

Analysts added that among the 32 Chinese regions, about ten programs suspended the programs. State Green News Agency on Friday The claims were refuted that the regions have canceled the subsidies.

As Xinhua said on Friday that Chinese consumers can expect More consumer goods subsidies From the government early in July.

“If you have these festivals, and this feature becomes more regular to these online platforms that characterize these discounts, discounts and special shows throughout the year in various forms, it becomes difficult for the normal consumer to continue to participate in,” said Maneshi Richudhore, CEO of EMMER CAPITAL.China’s connectionFriday.

Instead, the government and companies will have to think about more creative ways to enhance local consumption.

Beijing chose not to distribute money to consumers, instead of focusing on the benefits of specific products and gradual measures to support employment.

Evelyn Cheng of CNBC contributed to this report.