China's extended 618 shopping fest fails to stir excitement
While the retail environment in China remains difficult, there are signs 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, with government consumer subsidies for goods such as home appliances and cellphones, 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 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 May have 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 such as 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.'
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TimesLIVE
2 days ago
- TimesLIVE
China's extended 618 shopping fest fails to stir excitement
While the retail environment in China remains difficult, there are signs 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, with government consumer subsidies for goods such as home appliances and cellphones, 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 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 May have 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 such as 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.'
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