China's 618 Festival: Shoppers' Apathy Amid Growing Challenges
China's 618 shopping festival lacks enthusiasm as consumer concerns persist despite extended sales periods. E-commerce giants tried to boost retail growth with discounts and subsidies, but many consumers remain cautious, opting for essential purchases. Analysts warn subsidy pauses could further impact sales and retail performance in coming months.
China's largest mid-year shopping festival, known as 618, drew to a close with muted enthusiasm, following more than a month of promotions attempting to entice consumers into spending more.
The festival, initially a one-day event celebrating JD.com's founding, has now become an extended sales period across all e-commerce platforms, beginning on May 13 this year. Challenges such as employment stability issues, stalled wage growth, and the property crisis have left consumers hesitant to splurge, despite attempts by retailers and the government to bolster spending with deeper discounts and consumer subsidies.
Though major e-commerce platforms have doubled their user orders, and brands like Apple and Xiaomi surpassed significant sales milestones, analysts caution that reduced subsidies may hinder growth. As retail sales see unexpected gains, the ongoing pause in subsidies may dampen consumer enthusiasm in coming months.
(With inputs from agencies.)
Google News