Chinese consumers snapped up billions worth of items in China's first major online shopping festival after emerging from the pandemic as merchants slashed prices, but analysts say that consumer confidence still remains weak.
Chinese merchants offered customers steep discounts during the 618 shopping festival, which ran on China's major shopping platforms from the end of May until June 18, in the hopes of shoring up sales amid a weaker-than-expected recovery in consumption.
Major shopping festivals, like e-commerce retailer JD.com's 618 and Alibaba's Singles' Day, are typically barometers of consumption in China, and Chinese e-commerce platforms often participate by offering discounts and incentives to consumers.
Analysts say that consumption remains soft this year as China emerges from the pandemic, even as platforms including JD.com, Tmall, Taobao and Pinduoduo offered billions in subsidies.
"For months, Chinese consumers have been price-conscious, looking for deals and trading down across most product categories," Rein said.
Persons:
JD.com, Pinduoduo, Shaun Rein, Rein, Trudy Dai, Jacob Cooke, Lemaire, Chloe, Miu, Cooke
Organizations:
Analysts, China Market Research Group, WPIC, Brands, Burberry
Locations:
China, Shanghai, Alibaba's, Covid