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Chinese e -commerce giant Alibaba Taobao and Tmall reported strong sales in categories entitled to state subsidies.
Serin Lee | Images Sopa | LightRockket | Gets the image
The latest Chinese shopping festival, which ended on Wednesday, pointed to a pickup in consumption, as e -commerce companies reported large sales of consumer electronics, as well as beauty and pets products.
Festival 618 – One of the largest advertising periods of the year in China as Alibaba. Jd.com And other major Chinese e -commerce platforms unfold discounts.
This year’s gross festival price, sales over time, increased by 15.2% from last year to 855.6 billion yuan ($ 119 billion), reports Syntun Retail data provider.
This indicates a certain recovery of consumption, after Syntun data for the last year 618 festival revealed a decrease in sales from year to year For the first time in eight years. However, as it was in the case of other annual trade activities, retailers have expanded the advertising period, starting May 13, a week earlier than 2024, until the end of June 18.
However, JD.com said the number of buyers involved has reached a record high, more than twice as compared to May 18 to an uncertain figure. More than 2.2 billion orders have been recorded through JD channels, which include online stores and offline, food delivery and fast trade, According to the retail seller.
Investors were surprised on Monday more than expected by 6.4% of national retail growth in May as a rapid increase since December 2023, according to the official data obtained through the wind information.
Chinese consumers spend “a lot of money on outerwear. Cosmetics and beauty do really well,”-said on Friday at CNBC Jacob Cooke, co-founder and CEO of WPIC Marketing + Technologies. The company helps foreign brand – for example, Vitamix and is clinical – selling online in China and other parts of Asia.
It estimates that its solid value of goods increased by about 14.1% over the year over the year, pointing to a slightly slower increase than Syntun reports.
He also pointed to increasing number of customers outside the big, famous cities of ChinaBased on the packages he saw, leaving his company.
Influence on the subsidy
The Beijing Trade Program for subsidizing some consumer products, such as consumer electronics, has helped increase sales.
According to Syntun, it became part of the categories, joined the categories, bringing 110.1 billion yuan, while beauty and skin care products of 43.2 billion Yuan, Syntun reports.
Exactly the same Chinese e -commerce giant Alibaba“Taobao and Tmall” reported large sales in categories that are entitled to state subsidies – at the initial sale more than three times from the same period of November 2, during the Singles Festival, which indicates the increase in consumer interest in the newest party subsidies.
Taobao generative artificial intelligence tools have also increased sales. The company said that earlier this month the company and model of marketing trading increased the company’s profitability by an average of 12%. It repeats like alibaba and other major Chinese companies It was reported to improve consumer sales in the first place Partially backed up by AI marketing tools.
Buyers also spend on their pets. Taobao and Tmall noted the surge of demand for pet care products, as the total sales volume in the first 100 minutes exceeded the total sales in the first four hours of the same period last year.
But despite the strong sales, the mid -year e -commerce festival lost the couple before the end after some Chinese provincial governments ended money to continue to offer subsidies, Chinese media yicai reported Thursday.
“We believe that the promotion of June 18 this year could be stronger if the program of the trade subsidies remained intact,” Nomura analysts said on Thursday.
Analysts have added that about a dozen programs have been suspended from 32 mainland Chinese regions. State News Agency Xinhua on Friday refuted the statements that regions canceled subsidies.
Xinhua on Friday also reported that Chinese consumers can wait More subsidies for consumer goods From the government already in July.
Too much good?
This year, the 618 festival lasted more than a month, which took place from May 13 to June 18. While retail sales have improved during this period, experts warn that the long duration of such festivals may reduce consumption stimulus.
“If you have these festivals, and it becomes more regular feature of these internet platforms that these discounts, discounts and special offers continue throughout the year in different faces, then the average consumer becomes difficult to continue to participate in them,” said Rychudhur, CEO of Emmer Capital Partners, on CNBC “Chinese connection“Friday.
Instead, the government and the company will have to come up with more innovative ways to increase domestic consumption, he added.
Beijing decided not to hand out cash, but instead of focusing on subsidies for specific products and additional measures to support employment.
– Evelyn Chen to CNBC contributed to this report.
