Mid-year sales festival
Enhances post-lockdown recovery
Hi g h - e n d home appliances and camping gear were among Chinese shoppers’ most sought-after buys during the “618” shopping festival, according to e-commerce platforms — a sign of how China’s COVID-19 curbs are driving lifestyle changes.
The event was the first major shopping festival to take place since several Chinese cities, including Shanghai, were hit by a series of lockdowns to halt the spread of COVID-19.
Online retailers, restaurants and service providers offered an array of incentives as shoppers looked for bargains during the mid-year sales event, which wrapped up over the weekend.
Major online retailers posted strong sales, indicating that a post-lockdown recovery is under way.
Local shoppers have resumed spending, outranking other Chinese city except Beijing during JD.com’s promotional period.
JD.com, which created the shopping frenzy in 2004, posted combined sales of almost 380 billion yuan (US$58 billion) from June 1 to June 18, more than 10 percent higher than last year.
Around 400 million yuan in digital currency was spent on the heels of a May trial program. Virtual coupons in the form of digital yuan worth tens of millions of yuan were issued in 23 cities across China.
JD.com said its sales of gaming projectors and 4K high-definition projectors increased 10 times during the event, while air fryers jumped five times. Slim fridges — favored by shoppers with small homes — saw sales triple from the previous year.
“Due to the pandemic, some consumers saw their living space become smaller and this led them to give some thought to adding some ‘spark’ to their lives,” JD.com said in a post on its WeChat account on Sunday.
Alibaba Group said that Italian luxury coffee machine brand La Marzocco saw a sixfold rise in sales on the first day of its Tmall marketplace’s 618 event compared with the previous year.
The platforms also reported a surge in sales for camping gear and outdoor equipment, fuelled by the growing popularity of outdoor activities, especially among citydwellers.
Camping-related products more than tripled in terms of sales on Tmall during its first round of 618 sales from the evening of May 31 to June 3, Alibaba said, with a new 2022 series of fishing reel by Japanese high-end fishing gear brand Daiwa, priced at more than 5,000 yuan, selling out within seconds.
In addition, rising health awareness during the pandemic also pushed people to stockpile health products, JD.com said, citing surging sales of organic milk, highend teas and fitness drinks.
Local shoppers placed the most orders at online discount retailer Vipshop, followed by Beijing and Shenzhen. Apparel and outdoor gadgets were especially popular.
Vipshop has enhanced its support and logistics facility, boosting sales of local sports brands such as Warrior and Xtep as consumers embrace home-grown fashion.
Shanghai financial consultant Jasmine Hu said she has been comparing prices from various online channels since May, and has been looking forward to discounts on major digital platforms and online stores operated by department stores.
“It’s an ideal time to look for new summer outfits and cooking materials. I also bought daily necessities for my family,” she revealed.
JD.com launched the promotional event several years ago to mark the online store’s anniversary. It has become the second-largest annual discount-shopping event after Singles Day that falls on November 11.
Online sales have been under pressure due to logistics disruptions amid the lockdowns.
Kantar Worldpanel figures show that FMCG (fast-moving consumer goods) market saw a 1 percent year-on-year contraction over the 12 weeks to the end of April, and e-commerce sales grew by a mere 1.2 percent due to strict restrictions on warehousing and transportation. The figures also indicate that JD continued its advance in penetration from a year ago while Alibaba experienced a decline in buyer base over this period.
JD Daojia teamed up with 150,000 physical stores during the promotion, offering one-hour deliveries. The JD Shop Now service and JD Daojia posted 600 million yuan in sales on June 18.
Home appliance sales surged 10 times from a year earlier, while sports apparel, cosmetics and menswear were three times higher.
The number of shoppers placing orders through JD’s Shop Now was four times higher from the same period last year.
Hong Kong-listed Jiumaojiu International Holdings said its 40 local Tai’er fish restaurants have been serving up its signature pickled cabbage fish dish since June 3 with 22 percent more fish than usual in a three-week promotion period.
Local retailer Bailian Group started a threemonth promotion period until September with a total of 1.8 billion yuan in coupons to be provided to use at its department stores, supermarkets and online channels.
In the first stage of its pre-sale promotion in late May, Alibaba’s logistics affiliate Cainiao said the number of fast-track delivery orders was up 10 percent over last year. Cainiao has enhanced its cold-chain logistics service, offering 24- to 48-hour deliveries in over 1,200 cities.