Latest news with #JacobCooke
CNBC
5 hours ago
- 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.
CNBC
10 hours ago
- Business
- CNBC
Labubu-maker Pop Mart's shares extend slide as Morgan Stanley removes it from China focus list
BEIJING — Shares in Pop Mart, the Chinese toy company behind the recent Labubu craze, continued to tumble Friday, after Morgan Stanley removed the stock from a focus list. Pop Mart's Hong Kong-listed shares were last down more than 5%, extending their slide from the previous session when they had slumped 5.3%. That's put the high-flying stock on track for its first negative week since early May — with losses of more than 13% so far. Its year-to-date gains stand at over 160%. Morgan Stanley said in a note late Wednesday it was replacing Pop Mart with insurance company PICC P&C in the firm's China and Hong Kong focus list. The investment bank did not elaborate on why it removed Pop Mart shares. The firm on June 10 had raised its price target on the toy company to 302 Hong Kong dollars ($38.47), up from 224 HKD, on expectations that Pop Mart still had room to grow in the long term. "We think the market has fully factored in Pop Mart's exponential growth in 2025 but may not have strong conviction on the long-term outlook," equity analyst Dustin Wei and a team said in the June 10 report. "That said, in view of its lofty valuation, we do not expect this level of outperformance to continue in the next few quarters," the report said. Pop Mart shares hit a record intra-day high of 283.40 HKD on June 12. The Beijing-based toy company has rapidly expanded overseas with online sales platforms and physical stores, including in the U.S. and U.K. Pop Mart first gained popularity with its "blind box" concept, in which consumers buy unmarked boxes — which can cost from about $5 to $10 each — for a chance at getting a unique figurine and building a collection. In the last few months, the company's "Labubu" series of toys featuring an elf-like character have become a global phenomenon, even drawing the attention of fashion and culture-focused New York Magazine and The New York Times. Pop Mart has also released Labubu stuffed toys, pillows and related merchandise to capture demand. A 4-foot-tall Labubu sold for the equivalent of $170,000 at an auction in Beijing earlier this month. Many of the more affordable versions of the figurine subsequently went out of stock in mainland China. "We've seen certain trends like that before ... There seems to always be some cute thing that people have to have," 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. He pointed to interest last year in capybara stuffed toys. Chinese retailer Miniso, which also has stores in the U.S. and other countries, was one of the main sellers of the stuffed animal. Cooke saw Pop Mart as "more lucky than anything," although he pointed out it reflects growing interest in toys not just for children but also adults. Indicating the soaring popularity of its toys, Pop Mart's overseas sales in 2024 have already surpassed the company's overall sales in 2021. The company reported total sales, primarily domestic, of 4.49 billion yuan ($624.6 million) in 2021. In 2024, overseas sales alone surpassed that to hit 5.1 billion yuan, up 373% from a year ago, while mainland China sales climbed to 7.97 billion yuan.
TimesLIVE
a day ago
- Business
- 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.'
Fashion Network
14-05-2025
- Business
- Fashion Network
China's JD.com tops quarterly revenue estimates as consumer demand holds up
Chinese e-commerce retailer topped market estimates for quarterly revenue on Tuesday, in a sign of steady demand even as U.S. tariffs and prolonged economic weakness weighed on consumer sentiment. Consumer demand in China has faced a series of hurdles in recent years, with a prolonged property sector crisis and high unemployment rates never allowing for a full recovery from the impact of the Covid-19 pandemic. But e-commerce players such as and Alibaba, which reports quarterly results on Thursday, have resorted to slapping heavy discounts and cutting product prices to lure shoppers, while also leaning on government subsidies to drive consumption. That has helped a major retailer of home appliances in China, even as consumer sentiment took a hit from U.S.-China trade tensions. China's retail sales growth also quickened in January and February. reported total revenue of 301.08 billion yuan ($41.82 billion) for the quarter ended March 31, up 15.8% from a year earlier. Analysts' estimate was 289.22 billion yuan, according to data compiled by LSEG. U.S.-listed shares of the company jumped nearly 3% in early trading. The upcoming shopping festival, dubbed as 618 as it falls on June 18, will be a barometer to gauge to what extent consumer demand in the country has recovered. The online shopping event, initiated by is becoming longer and longer. This year, Taobao already started the 618 pre-sale on Tuesday, while whose official start date of 618 is May 31, announced an event called the "Heartbeat Shopping Festival" which began on Tuesday. Jacob Cooke, CEO of e-commerce consultancy WPIC Marketing + Technologies, said he expects sales growth during this year's 618. "China's consumer confidence has shown greenshoots in 2025, with healthy retail growth the last few months and strong travel numbers on May Day and the Qingming Festival," he said. On Tuesday, the State Administration for Market Regulation, China's top market regulator, said it has summoned e-commerce platforms such as Meituan, and Alibaba's and requested they abide by laws and regulations and compete fairly and in an orderly manner.
Fashion Network
14-05-2025
- Business
- Fashion Network
China's JD.com tops quarterly revenue estimates as consumer demand holds up
That has helped a major retailer of home appliances in China, even as consumer sentiment took a hit from U.S.-China trade tensions. China's retail sales growth also quickened in January and February. reported total revenue of 301.08 billion yuan ($41.82 billion) for the quarter ended March 31, up 15.8% from a year earlier. Analysts' estimate was 289.22 billion yuan, according to data compiled by LSEG. U.S.-listed shares of the company jumped nearly 3% in early trading. The upcoming shopping festival, dubbed as 618 as it falls on June 18, will be a barometer to gauge to what extent consumer demand in the country has recovered. The online shopping event, initiated by is becoming longer and longer. This year, Taobao already started the 618 pre-sale on Tuesday, while whose official start date of 618 is May 31, announced an event called the "Heartbeat Shopping Festival" which began on Tuesday. Jacob Cooke, CEO of e-commerce consultancy WPIC Marketing + Technologies, said he expects sales growth during this year's 618. "China's consumer confidence has shown greenshoots in 2025, with healthy retail growth the last few months and strong travel numbers on May Day and the Qingming Festival," he said. On Tuesday, the State Administration for Market Regulation, China's top market regulator, said it has summoned e-commerce platforms such as Meituan, and Alibaba's and requested they abide by laws and regulations and compete fairly and in an orderly manner. Food delivery in China is dominated by Meituan and but high-profile entry into the field in February has intensified the competition.
