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Fashion Network
21 hours ago
- Business
- Fashion Network
China's 618 shopping festival sees slower momentum despite extended run
China's retail sector continues to struggle amid concerns over job stability, stagnant wage growth and the ongoing property crisis, leaving shoppers hesitant to splurge. Retailers and the government have attempted to revive muted consumer spending through deeper discounts and broader consumer subsidies. Although extending the sales period may support overall sales growth during this year's 618 period, analysts say that prolonged festivals and year-round promotions on e-commerce platforms have diminished enthusiasm for these 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, for 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 opt for more affordable alternatives, making discounts less of a factor. "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. However, according to data provider Syntun, sales during the mid-year festival last year declined for the first time in 2024, down 7% to 742.8 billion yuan ($103.31 billion) compared to the previous year. This year, reported that the number of users placing orders during the 618 event more than doubled compared to the previous year, totaling over 2.2 billion orders across its online, offline and food delivery platforms. Alibaba stated that 453 brands surpassed 100 million yuan ($13.91 million) in gross merchandise volume (GMV) over the 618 period. Brands that exceeded 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 that is roughly analogous to sales revenue.
Fashion Network
a day ago
- Business
- Fashion Network
China's 618 shopping festival sees slower momentum despite extended run
China's retail sector continues to struggle amid concerns over job stability, stagnant wage growth and the ongoing property crisis, leaving shoppers hesitant to splurge. Retailers and the government have attempted to revive muted consumer spending through deeper discounts and broader consumer subsidies. Although extending the sales period may support overall sales growth during this year's 618 period, analysts say that prolonged festivals and year-round promotions on e-commerce platforms have diminished enthusiasm for these 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, for 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 opt for more affordable alternatives, making discounts less of a factor. "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. However, according to data provider Syntun, sales during the mid-year festival last year declined for the first time in 2024, down 7% to 742.8 billion yuan ($103.31 billion) compared to the previous year. This year, reported that the number of users placing orders during the 618 event more than doubled compared to the previous year, totaling over 2.2 billion orders across its online, offline and food delivery platforms. Alibaba stated that 453 brands surpassed 100 million yuan ($13.91 million) in gross merchandise volume (GMV) over the 618 period. Brands that exceeded 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 that is roughly analogous to sales revenue.
Business of Fashion
a day ago
- Business
- Business of Fashion
China's Extended 618 Shopping Festival Fails to Stir Excitement
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 percent 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 percent 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.' By Sophie Yu, Casey Hall, Liangping Gao; Editor: Jacqueline Wong Learn more: China's Beats Quarterly Revenue Estimates E-commerce retailers like and Alibaba have begun discounting goods and cutting product prices to retain customers.
Business Times
a day ago
- Business
- Business Times
China's 618 shopping fest sets record, but daily spending slips
[BEIJING] China's largest mid-year shopping festival, 618, ended on Wednesday (Jun 19) with record sales, though daily spending dropped amid an extended sales period aimed at enticing consumers to part with more of their hard-earned money. The longer sales period helped the combined gross merchandise value (GMV), a business metric commonly used in e-commerce, reach an all-time high of 855.6 billion yuan (S$153.3 billion), according to retail data provider Syntun. That was 15.2 per cent higher than the prior year's 742.8 billion yuan. The festival, originally a single-day event celebrating founding on Jun 18, has evolved into a month-long affair spanning all major e-commerce platforms. This year's pre-sales began on May 13, a week longer than in 2024, leading to lower average daily spending of 2.31 billion yuan, compared with 2.48 billion yuan last year, according to Reuters calculations. Alibaba Group's Tmall kept its top position on sales, the data showed, followed by ByteDance's Douyin and Pinduoduo Holdings' Pinduoduo. Syntun did not provide sales figures for each platform. Despite the upbeat figures, the world's second-largest economy's retail sector continues to struggle due to concerns over employment stability, stalled wage growth and the ongoing property crisis. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Retailers and the government have sought to lift subdued spending by deepening discounts and expanding consumer subsidies but analysts say longer festivals and year-round discounts 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 .'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. This year, said the number of users placing orders for the 618 event 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 in GMV over the 618 period. Brands that surpassed one billion yuan in GMV included Apple, Xiaomi, Huawei, Nike, Adidas, L'Oréal and Lululemon, Alibaba added. 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 per cent 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. 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.' REUTERS
Economic Times
a day ago
- Business
- Economic Times
Daily spending dips, but China's 618 shopping fest sets record with all-time high sales
Reuters A advertisement for the "618" shopping festival displayed at a shopping mall in Beijing, China (File Photo) China's largest mid-year shopping festival, 618, ended on Wednesday with record sales, though daily spending dropped amid an extended sales period aimed at enticing consumers to part with more of their hard-earned money. The longer sales period helped the combined gross merchandise value (GMV), a business metric commonly used in e-commerce, reach an all-time high of 855.6 billion yuan ($119 billion), according to retail data provider Syntun. That was 15.2% higher than the prior year's 742.8 billion yuan. The festival, originally a single-day event celebrating founding on June 18, has evolved into a month-long affair spanning all major e-commerce platforms. This year's pre-sales began on May 13, a week longer than in 2024, leading to lower average daily spending of 2.31 billion yuan, compared with 2.48 billion yuan last year, according to Reuters calculations. Alibaba Group's Tmall kept its top position on sales, the data showed, followed by ByteDance's Douyin and Pinduoduo Holdings' Pinduoduo. Syntun did not provide sales figures for each platform. Despite the upbeat figures, the world's second-largest economy's retail sector continues to struggle due to concerns over employment stability, stalled wage growth and the ongoing property crisis. Retailers and the government have sought to lift subdued spending by deepening discounts and expanding consumer subsidies but analysts say longer festivals and year-round discounts 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. This year, said the number of users placing orders for the 618 event 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 in GMV over the 618 period. Brands that surpassed 1 billion yuan in GMV included Apple , Xiaomi, Huawei, Nike, Adidas, L'Oreal and Lululemon, Alibaba added. 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. 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." ($1 = 7.1910 Chinese yuan)
