Latest news with #618festival
Yahoo
5 days ago
- Business
- Yahoo
China's JD.com tops quarterly revenue estimates on steady e-commerce demand
(Reuters) -Chinese e-commerce giant beat market estimates for quarterly revenue on Thursday, signaling resilient consumer spending on its platform, fueled by price cuts and government subsidies. U.S.-listed shares of the company rose about 3% in premarket trading. Consumer demand in China has remained muted amid persistent economic pressures and trade uncertainty, but retailers like have leaned on deep discounts, promotions and government stimulus to spur sales. also benefited from record sales logged during the 618 festival - China's largest mid-year shopping bonanza. Total gross merchandise value, a measure of sales, jumped 15.2% to reached an all-time high of 855.6 billion yuan, according to retail data provider Syntun. Total revenue rose 22.4% to 356.66 billion yuan ($49.73 billion) during the second quarter ended June, compared with analysts' average estimate of 331.63 billion yuan, according to data compiled by LSEG. Net income attributable to ordinary shareholders was 6.2 billion yuan for the quarter, compared to 12.6 billion yuan a year earlier. ($1 = 7.1714 Chinese yuan renminbi) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
5 days ago
- Business
- Reuters
China's JD.com tops quarterly revenue estimates on steady e-commerce demand
Aug 14 (Reuters) - Chinese e-commerce giant ( opens new tab beat market estimates for quarterly revenue on Thursday, signaling resilient consumer spending on its platform, fueled by price cuts and government subsidies. U.S.-listed shares of the company rose about 3% in premarket trading. Consumer demand in China has remained muted amid persistent economic pressures and trade uncertainty, but retailers like have leaned on deep discounts, promotions and government stimulus to spur sales. also benefited from record sales logged during the 618 festival - China's largest mid-year shopping bonanza. Total gross merchandise value, a measure of sales, jumped 15.2% to reached an all-time high of 855.6 billion yuan, according to retail data provider Syntun. Total revenue rose 22.4% to 356.66 billion yuan ($49.73 billion) during the second quarter ended June, compared with analysts' average estimate of 331.63 billion yuan, according to data compiled by LSEG. Net income attributable to ordinary shareholders was 6.2 billion yuan for the quarter, compared to 12.6 billion yuan a year earlier. ($1 = 7.1714 Chinese yuan renminbi)
CNBC
20-06-2025
- Business
- CNBC
Is China going through a consumption revival? Its 618 festival is one sign of it
China's latest shopping festival, which wrapped up Wednesday, pointed to a pickup in consumption, as e-commerce companies reported strong sales of consumer electronics, as well as beauty and pet care products. The 618 festival is one of the biggest promotional periods of the year in China as Alibaba, and other major Chinese e-commerce platforms roll out discounts. This year, the festival's gross merchandise value, a measure of sales over time, surged by 15.2% from last year to an estimated to 855.6 billion yuan ($119 billion), according to retail data provider Syntun. That points to some recovery in consumption, after Syntun data for last year's 618 festival revealed a year-on-year decline in sales for the first time in eight years. However, as has been the case with other annual shopping events, retailers expanded the promotional period to start May 13, a week earlier than in 2024, before ending June 18. Still, said the number of shoppers participating hit a record high, more than doubling year on year between May 30 and June 18 to an unspecified figure. More than 2.2 billion orders were recorded across JD's channels, which include online and offline stores, food delivery and quick commerce, according to the retailer. Investors were surprised Monday by a better-than-expected 6.4% increase in national retail sales in May from a year ago — the fastest increase since December 2023, according to official data accessed via Wind Information. Chinese consumers are spending "a lot of money on outerwear. Cosmetics and beauty doing really well," Jacob Cooke, co-founder and CEO of WPIC Marketing + Technologies, told CNBC on Friday. The company helps foreign brands — such as Vitamix and iS Clinical — sell online in China and other parts of Asia. His firm estimates that gross merchandise value during 618 grew by around 14.1% from a year ago, pointing to a slightly slower increase than what Syntun reported. He also pointed to growing numbers of customers outside of China's big, well-known cities, based on the packages he's seen leaving his company's warehouse. Beijing's trade-in program to subsidize certain consumer products such as consumer electronics helped boost sales. Household appliances emerged champion among the categories, bringing in 110.1 billion yuan in sales, while beauty and skin care products clocked in 43.2 billion yuan in sales, according to Syntun. Similarly, Chinese e-commerce giant Alibaba's Taobao and Tmall reported strong sales in categories eligible for government subsidies — with initial sales more than tripling from the same period around the Nov. 11 Singles' Day shopping festival, indicating increased consumer interest in the newest batch of subsidies. Taobao's generative artificial intelligence tools also boosted sales. Its image-to-video feature and an advanced marketing bidding model boosted campaign return on investment by an average of 12%, the company said earlier this month. That echoes how Alibaba and other major Chinese companies reported improved first-quarter consumer sales, bolstered in part by AI-powered marketing tools. Shoppers are also splurging on their pets. Taobao and Tmall noted a surge in demand for pet care products, as total sales in the first 100 minutes surpassed the total sales from the first four hours of the same period last year. But despite strong sales, the mid-year e-commerce festival lost some steam toward the end after some Chinese provincial governments ran out of money to keep offering trade-in subsidies, Chinese media Yicai reported Thursday. "We believe the June 18 promotion this year could have been stronger, had the trade-in subsidy program remained intact," Nomura analysts said in a note Thursday. The analysts added that of 32 mainland China regions, around a dozen have suspended trade-in programs. State-run news agency Xinhua on Friday refuted claims that regions had canceled the subsidies. Xinhua on Friday also reported that Chinese consumers can expect more consumer goods subsidies from the government as early as July. This year's 618 festival lasted over a month, running from May 13 to June 18. While retail sales have improved in that period, experts warn that the prolonged duration of such festivals could reduce the incentive for consumption. "If you do have these festivals, and that's becoming more regular feature of these online platforms that these discounts, rebates and special offers, they continue all throughout the year in different guises, then it becomes difficult for the average consumer to keep on participating in them," said Manishi Raychaudhuri, CEO of Emmer Capital Partners, on CNBC's "The China Connection" on Friday. Instead, the government and companies will have to think of more innovative ways to boost domestic consumption, he added. Beijing has opted not to hand out cash to consumers, instead focusing on subsidies for specific products and incremental measures to support employment.
Yahoo
19-06-2025
- Business
- Yahoo
China's extended 618 shopping fest fails to stir excitement
By Sophie Yu and Casey Hall BEIJING (Reuters) -China's biggest mid-year shopping festival, 618, ended on Wednesday evening without much fanfare after more than a month of promotional events aimed at enticing consumers to part with more of their hard-earned money. Originally a single-day celebration marking the founding of e-commerce giant on June 18, the festival has expanded to include all e-commerce platforms with ever-lengthening sales periods. This year, presale for (JD) and Alibaba (BABA) kicked off on May 13, making the shopping festival longer than a month. China's retail sector continues to struggle due to concerns over employment stability, stalled wage growth and the ongoing property crisis, leaving shoppers in no mood to splurge. Retailers and the government have sought to lift subdued spending by deepening discounts and expanding consumer subsidies. Though extending the sales period is likely to help overall sales growth for this year's 618 period, analysts say, longer festivals and year-round discounts on e-commerce platforms have dampened excitement for these kinds of events. "I don't have anything special to buy during the 618 shopping festival. Because there are always great deals, I can buy whatever I need whenever," said Xu Binqi, who works in Beijing's film industry. "Take skincare products as an example, I buy them whenever I run out, and the prices are no higher than during the 618 festival." Rachel Lee, general manager of market research firm Worldpanel China and co-author of Bain & Co.'s recent China Shopper Report, said that when consumers are budget-conscious, they seek affordable alternatives, and discounts play a lesser role. "Standalone promotional discounts will find it increasingly difficult to drive volume growth," she said. Major e-commerce platforms have not disclosed overall sales figures for 618 in recent years, but according to data provider Syntun, sales during the mid-year festival last year fell for the first time in 2024, down 7% at 742.8 billion yuan ($103.31 billion) from the year before. This year, said the number of users placing orders for the 618 event has more than doubled year-on-year, with over 2.2 billion orders across its online, offline and food delivery platforms. Alibaba said that 453 brands surpassed 100 million yuan ($13.91 million) in gross merchandise volume (GMV) over the 618 period. Brands that surpassed 1 billion yuan in GMV included Apple, Xiaomi, Huawei, Nike, Adidas, L'Oréal and Lululemon, Alibaba added. GMV is a metric used by e-commerce companies roughly analogous to sales revenue. RETAIL GROWTH, SUBSIDY IMPACT While the retail environment in China remains difficult, there are signs that consumption overall has picked up in recent months. Retail sales growth surpassed expectations in May, with official data showing a 6.4% increase, the fastest growth since December 2023. Analysts pointed to the earlier start of 618, along with government consumer subsidies for goods such as home appliances and mobile phones, as twin drivers. Jacob Cooke, co-founder and CEO of WPIC Marketing + Technologies, said the extended 618 festival front-loaded consumer demand, encouraging earlier spending and smoothing consumption trends into May. "A longer 618 festival with low prices helps sustain engagement across weeks and has contributed materially to May's strong retail performance," Cooke said. Analysts warn that a pause in subsidy programmes in several regions, as central government allocations dry up, could weigh on 618 sales and overall consumption this month, though more funds are likely to be allocated for those programmes in July. "Rapid sales growth of key subsidy categories (such as home appliances) driven by the 618 shopping festival starting from quickly depleted funds," HSBC analysts wrote in a note. "Suspension of national subsidies in selected regions may affect 618 sales and June retail sales" the analysts added. Eve Wang, 32, reflected on the shift in spending habits: "In the past, for example during events like Singles' Day and 618, I used to spend a lot of money on stockpiling goods, but now ... I only buy what I need." Wang didn't participate in this year 618 shopping festival. "I didn't buy anything at all." ($1 = 7.1897 Chinese yuan) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
19-06-2025
- Business
- Yahoo
China's extended 618 shopping fest fails to stir excitement
By Sophie Yu and Casey Hall BEIJING (Reuters) -China's biggest mid-year shopping festival, 618, ended on Wednesday evening without much fanfare after more than a month of promotional events aimed at enticing consumers to part with more of their hard-earned money. Originally a single-day celebration marking the founding of e-commerce giant on June 18, the festival has expanded to include all e-commerce platforms with ever-lengthening sales periods. This year, presale for and Alibaba kicked off on May 13, making the shopping festival longer than a month. China's retail sector continues to struggle due to concerns over employment stability, stalled wage growth and the ongoing property crisis, leaving shoppers in no mood to splurge. Retailers and the government have sought to lift subdued spending by deepening discounts and expanding consumer subsidies. Though extending the sales period is likely to help overall sales growth for this year's 618 period, analysts say, longer festivals and year-round discounts on e-commerce platforms have dampened excitement for these kinds of events. "I don't have anything special to buy during the 618 shopping festival. Because there are always great deals, I can buy whatever I need whenever," said Xu Binqi, who works in Beijing's film industry. "Take skincare products as an example, I buy them whenever I run out, and the prices are no higher than during the 618 festival." Rachel Lee, general manager of market research firm Worldpanel China and co-author of Bain & Co.'s recent China Shopper Report, said that when consumers are budget-conscious, they seek affordable alternatives, and discounts play a lesser role. "Standalone promotional discounts will find it increasingly difficult to drive volume growth," she said. Major e-commerce platforms have not disclosed overall sales figures for 618 in recent years, but according to data provider Syntun, sales during the mid-year festival last year fell for the first time in 2024, down 7% at 742.8 billion yuan ($103.31 billion) from the year before. This year, said the number of users placing orders for the 618 event has more than doubled year-on-year, with over 2.2 billion orders across its online, offline and food delivery platforms. Alibaba said that 453 brands surpassed 100 million yuan ($13.91 million) in gross merchandise volume (GMV) over the 618 period. Brands that surpassed 1 billion yuan in GMV included Apple, Xiaomi, Huawei, Nike, Adidas, L'Oréal and Lululemon, Alibaba added. GMV is a metric used by e-commerce companies roughly analogous to sales revenue. RETAIL GROWTH, SUBSIDY IMPACT While the retail environment in China remains difficult, there are signs that consumption overall has picked up in recent months. Retail sales growth surpassed expectations in May, with official data showing a 6.4% increase, the fastest growth since December 2023. Analysts pointed to the earlier start of 618, along with government consumer subsidies for goods such as home appliances and mobile phones, as twin drivers. Jacob Cooke, co-founder and CEO of WPIC Marketing + Technologies, said the extended 618 festival front-loaded consumer demand, encouraging earlier spending and smoothing consumption trends into May. "A longer 618 festival with low prices helps sustain engagement across weeks and has contributed materially to May's strong retail performance," Cooke said. Analysts warn that a pause in subsidy programmes in several regions, as central government allocations dry up, could weigh on 618 sales and overall consumption this month, though more funds are likely to be allocated for those programmes in July. "Rapid sales growth of key subsidy categories (such as home appliances) driven by the 618 shopping festival starting from quickly depleted funds," HSBC analysts wrote in a note. "Suspension of national subsidies in selected regions may affect 618 sales and June retail sales" the analysts added. Eve Wang, 32, reflected on the shift in spending habits: "In the past, for example during events like Singles' Day and 618, I used to spend a lot of money on stockpiling goods, but now ... I only buy what I need." Wang didn't participate in this year 618 shopping festival. "I didn't buy anything at all." ($1 = 7.1897 Chinese yuan) Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
