Mid-year shopping festival shows China’s huge potential in consumption
By Chi
Jingyi
June 18
or 618, another online shopping gala like the double 11, ended on Tuesday for
2019, June 18. Analysts say massive orders show great potential in China’s
consumption market.
The
accumulated order amount of JD.com, an online shopping platform, had reached
179.5 billion yuan ($25.9 billion) by 2 pm Beijing time Tuesday. In the first
hour of Tuesday, the transaction amount increased by 65 percent year-on-year,
according to data released on JD’s official account on Sina Weibo.
Its
rival Tmall, online B2C platform of the giant Alibaba Group, said trading
volumes of hundreds of brands had surpassed that of double 11 last year, with
the highest increase being more than 40 times, according to news released by
Alibaba Group.
“The
huge number of online orders shows that China has great potential as a
consumption market,” an industry insider who asked to remain anonymous told Global Times. “A lot of international
brands participated in the shopping feast this year. They are optimistic about
Chinese market.”
The 618
mid-year campaign is another big online shopping festival initiated by JD since
its competitor Alibaba founded the Double 11, or Singles’ Day, which is the
largest online shopping festival in China.
Retailers
are doing everything to compete in the campaign. JD offers discount and Tmall
offers payment by installments with zero interest. Pinduoduo, a newcomer gives
subsidies worth billions of yuan.
It’s
worth noting that Apple flagship store on Tmall joined the 618 e-commerce
festival for the first time.
The
ranking list of sales of the 618 shows that mobile phones, digital and 3C
products are in the lead with mobile phone at the top.
A
middle-aged engineer told Global Times
that his wife bought televisions, intelligent speakers and other intelligent
home appliances during the shopping spree.
“Pinduoduo
offers group purchases and I can make orders with friends at a very low price,”
a 64-year-old retired woman surnamed Li told Global Times Tuesday. “I like dancing after retirement. I often buy
dance dresses on Pinduoduo with other ladies in the dance group. And then the
group buying expands to daily consumption like fruits, oil, etc.”
“I want
to see if I’m lucky enough to snag Tmall’s offer on the iPhone XR at 618 yuan,
90 percent off,” 27-year-old office lady Cai who works for private equity told the Global Times.
“China
is seeing an increase in the consumption market and people’s purchasing power,”
said the industry insider.
Retail
sales of consumer goods reached 3.3 trillion yuan in May, up 8.6 percent
year-on-year, according to data from the Ministry of Commerce (MOC).
China’s
consumer market still has huge potential, said an official from the Department
of Market Operation of MOC on June 17. “With the implementation of policies for
5G commercial license issuances and the promotion of automobile purchases,
consumption growth will continue and the consumer market will maintain steady
and healthy development.”
Sales of
retail enterprises in May increased by 2.8 percent year-on-year, up 0.6 percent
from the previous month, according to MOC. The retail sales of cars reached
322.3 billion yuan, up 2.1 percent year-on-year and 4.2 percent from April.
“Middle
class consumption is increasing. Online retailers see rising demand on
intelligent products and automobiles,” said the analyst.
Source:
Global Times
On June 15th, 2019, with the
approach of the “618”
e-commerce promotion, Jiangsu Nanjing Yuhua Logistics Base has prepared over 20
million stocks, including 3C home appliances, as well as maternal and child, department
stores, and fresh food commodity. (Photo by Fang Dongxu from People’s Daily
Online)
Mid-year shopping festival shows China’s huge potential in consumption
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