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20 June 2022
What 618 can tell us about today’s China
Purchase behaviourEvent tie-insE-commerce & mobile retail
Online retailer JD.com reported a 10% increase in sales during the 618 shopping festival that ended last weekend; at 379.3 billion yuan ($57bn), that accounted for over half of the total GMV generated during the festival.
Why it matters
The 618 festival created by JD.com can be seen as an indicator of consumer confidence and behaviour as the government continues to pursue a zero-COVID policy. The picture that emerges is mixed.
Sales are up at JD.com at least but growth overall is flat; more significant, perhaps, is the performance of non-traditional e-commerce platforms: livestreaming platforms performed “brilliantly”, according to Syntun, a digital retail data service provider, while new retail platforms and community group buying platforms have also taken a small slice of the 618 pie.
The GMV of traditional online e-commerce platforms (including Tmall, JD.com and Pinduoduo) was 582.6 billion yuan (compared to 578.5 billion yuan in 2021).
GMV at livestreaming e-commerce platforms (top three: TikTok, Kuaishou, Diantao) hit 144.5 billion yuan.
GMV at new retail platforms (top three: JDtohome, Meituanshangou and Tao Xian DA) and community group buying platforms reached 22.4 billion yuan and 15.3 billion yuan respectively.
Lockdown-hit Shanghai ranked second only to Beijing in spending power among all mainland Chinese cities.
What were people buying?
High-end home appliances and camping gear were among Chinese shoppers' most sought-after, Reuters reports – a sign of how China's COVID-19 curbs are driving lifestyle changes.
Sourced from China Daily, Syntun, South China Morning Post, Reuters