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Taobao and Tmall of the Chinese electronic commerce giant Alibaba have declared solid sales in categories eligible for government subsidies.
Serene Lee | Sopa images | Lightrocket | Getty images
The latest Chinese shopping festival, which ended on Wednesday, underlined a consumption collection, because electronic trade companies have declared solid sales of consumer electronics, as well as pets and pet care.
Festival 618 is one of the largest promotional periods of the year in China Alibaba,, Jd.com And other main Chinese electronic commerce platforms are deploying discounts.
This year, the gross value of festival goods, a sales measure over time, jumped from 15.2% from last year to around 855.6 billion yuan (119 billion dollars), according to Synun of the retail data supplier.
This indicates a certain resumption of consumption, after Sytun’s data for the 618 festival from last year, revealed a drop in annual shift sales For the first time in eight years. However, as was the case with other annual purchase events, the retailers widened the promotional period to start on May 13, a week earlier than in 2024, before ending on June 18.
However, JD.com said that the number of participating buyers has reached a record, more than doubling from year to year between May 30 and June 18 to an unrecognized figure. More than 2.2 billion orders were recorded on JD channels, which include online and offline stores, food delivery and fast trade, According to the retailer.
Investors were surprised Monday by an increase of 6.4% better than expected of 6.4% of national retail sales in May a year ago – the fastest increase since December 2023, according to official data accessible via wind information.
Chinese consumers spend a lot of money on outdoor clothes. Cosmetics and beauty are doing very well, “Jacob Cooke, co-founder and CEO of WPIC Marketing + Technologies, CNBC said Friday. The company helps foreign brands – such as Vitamix and is clinical – for sale online in China and other parts of Asia.
His company believes that the gross value of goods in 618 increased by around 14.1% compared to a year ago, indicating a slightly slower increase than Sytun reported.
He also underlined Increasing number of customers outside the well -known cities of ChinaBased on the packages he saw the warehouse of his business.
Impact of subsidy
The Beijing Commercial Program to subsidize certain consumer products such as Consumer Electronics has helped stimulate sales.
The household appliances have emerged champion among the categories, producing 110.1 billion yuan sales, while beauty and skin care products timed 43.2 billion sales yuan, according to Synun.
In the same way, Chinese electronic commerce giant AlibabaTaobao and Tmall have said that solid sales in categories eligible for government grants – with initial sales more than triple compared to the same period around the November 11 shopping festival, indicating increased interest in consumers in the most recent share of subsidies.
The generative tools of Taobao’s artificial intelligence have also increased sales. Its video image function and an advanced marketing sales model has increased the campaign’s return on investment on average by 12%, the company said earlier this month. This echoes the way Alibaba and other large Chinese companies declared to improve consumer sales in the first quarter, Partly rendered by marketing tools powered by AI.
Buyers also make follies on their pets. Taobao and Tmall noted an increase in the demand for pet care products, because total sales in the first 100 minutes exceeded the total sales of the first four hours of the same period last year.
But despite solid sales, the mid-year electronic commerce festival has lost a little steam towards the end after certain Chinese provincial governments lacked money to continue to offer grants to exchanges, Chinese media Yicai reported Thursday.
“We believe that the promotion of June 18 of this year could have been stronger, if the trade subsidy program had remained intact,” Nomura analysts said in a note on Thursday.
Analysts added that in 32 regions of continental China, a dozen programs suspended the commercial programs. Friday, press agency published by the State, Xinhua Refused allegations according to which the regions had canceled the subsidies.
On Friday, Xinhua also reported that Chinese consumers could expect More grants to consumer goods of the government in July.
Too much of a good thing?
The 618 festival of this year lasted more than a month, from May 13 to June 18. Although retail sales have improved during this period, experts warn that the prolonged duration of these festivals could reduce consumption incentive.
“If you have these festivals, and it becomes a more regular characteristic of these online platforms than these discounts, discounts and special offers continue throughout the year in different forms, then it becomes difficult for the average consumer to continue to participate,” said Manishi Raychaudhuri, CEG to emmer Capital Partners, on CNBC “Chinese connection” Friday.
Instead, the government and companies will have to think about more innovative means to stimulate domestic consumption, he added.
Beijing has chosen not to distribute money to consumers, rather focusing on subsidies for specific products and additional measures to support employment.
– Evelyn Cheng de CNBC contributed to this report.
