Online shoppers in China were recently treated to a variety of exciting offers and incentives during the country’s first major online shopping festival following the easing of zero-COVID policies. As the 618 shopping festival came to a close on Sunday, e-commerce retailer JD.com surprisingly did not release the festival’s results, making it difficult to determine the total amount spent. It is worth mentioning that the Singles’ Day shopping festival, which takes place every year on November 11, generates billions of dollars in sales. According to analysts, consumers have become more price-conscious and hesitant to spend due to the sluggish economy and the ongoing effects of COVID-19.
Shaun Rein, an expert at the China Market Research Group in Shanghai, pointed out that Chinese consumer confidence remains weak due to a combination of geopolitics, the lingering impact of COVID-19, and domestic political factors. Rein believes that consumers likely spent less during the 618 shopping festival as online retailers were already offering significant discounts as a result of the pandemic, which made the additional deals less appealing. Retail sales, a crucial indicator of consumer spending, fell short of growth forecasts in May, rising by 12.7% compared to the previous year and slowing down from an 18.4% surge in April, as reported by the National Bureau of Statistics.
Over the years, Chinese leaders have been striving to transition the country’s economy from one driven by construction and investments to one fueled by consumer spending, akin to the US and other advanced economies. However, with the recovery from pandemic-related disruptions already faltering, consumers have not yet resumed spending as freely as before. To encourage customers and stimulate spending, e-commerce platforms have been investing billions of yuan in incentives and subsidies for both customers and merchants. Preliminary results from the 618 shopping festival showed strong sales of luxury brands such as Bulgari and Celine.
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