More worries for China, sales at big e-commerce festival drop for first time
"618" festival sales period have grown, now lasts for weeks
Second-biggest annual China discount event after Singles Day
JD.com reports turnover, sales volumes hit 618 record this year
Consumer demand remains sluggish on worries over economy, jobs
Revises with third party sales data in paragraphs 1-3
By Casey Hall and Sophie Yu
SHANGHAI, June 19 (Reuters) -Sales fell for the first time ever atChina's blowoutmid-year e-commerce sales festival as consumers remain cautious about spending as the economy sputters, according to third-party data estimates released on Wednesday.
Combined gross merchandise volume (GMV), a widely used proxy for e-commerce sales, reached 742.8 billion yuan ($102.36 billion) across China's major online platforms during the so called "618" shopping event, 7% lower than the same period last year, digital retail data provider Syntun said.
Sales in 618 had grown even during the pandemic, according to Syntun, and peaked in 2023 at nearly 800 billion yuan.
This year the shopping festival failedto stir up much excitement among shoppers, industry experts said, even as major platforms extended offers to a weeks-long period to woo consumers who have been tightening their belts amid a gloomy economic outlook.
The festival, named after the June 18 founding date of e-commerce provider JD.com 9618.HK but embraced by all platforms, is China's second-biggest annual sales event after Singles Day in November and is seen as akey test of household consumption.
The world's second-biggest economy is being weighed down by a prolonged property crisis and high unemployment, weighing heavily on consumer confidence.
"With discounts available year-round, buzz around 618 has diminished," said Jacob Cooke, CEO of e-commerce consultancy WPIC Marketing + Technologies.
JD.com said on Wednesday its turnover and order volumes reached a new high over the festival period, which ran from the end of May to June 18 this year. It did not elaborate on the exact growth rate of its orders or sales during the festival, which was first launched in 2010 as just a one-day sale.
Major players such as JD.com and Alibaba's 9988.HK Tmall and Taobao platforms this year cancelled a traditional pre-sale period in which shoppers could place deposits on products and complete their purchases later. Instead, the sales period itself was extended.
Sluggish demand alsois pushing retailers to constantly focus on low prices and lower profit margins, analysts said, adding to disinflationary pressures.
An analysis by consultancy Re-Hub of luxury brands' discounting strategies during this year's 618 festival found nearly half of the brands they tracked either maintained or reduced their average discounts from the previous year, while 20% increased their average discounts.
HOME APPLIANCES AND BEAUTY PRODUCTS
Alibaba had previously flagged in a mid-618 season update that sectors such as home appliances were outperforming on its platforms, led by brands such as Haier and Xiaomi 1810.HK.
The e-commerce giant said on Wednesday that sales of internationalbrands including Nike NKE.N, L'Oreal OREP.PA, Lancome and Adidas surpassed 1 billion yuan ($137.82 million) on Tmall during the period.
Apple AAPL.O offered discounts of up to 2,300 yuan ($318) on select iPhone models via its Tmall flagship store in a bid to keep pace with domestic competitor Huawei HWT.UL.
Within the first hours of sales, Alibaba said Apple had sold more than 200 million yuan of merchandise.
Rival PDD Holdings' PDD.O Pinduoduo, which does not traditionally disclose 618 sales data, did not respond immediately to a request for information.
Given low prices are now such a common feature of China's consumer landscape, it is becoming more difficult for e-commerce platforms to keep customers engaged - even with traditionally successful sales festivals.
"I haven't been paying constant attention to 618, to be honest, because there are just so many (shopping festivals)," said Anita Meng, a university student from Hangzhou.
"Even if these festivals are still going strong, my wallet is already exhausted," she said, adding she only made one purchase this 618 - a gaming chair for her older brother that was reduced from more than 1,200 yuan to 1,000 yuan.
($1 = 7.2570 Chinese yuan renminbi)
Reporting by Casey Hall in Shanghai and Sophie Yu in Beijing; Editing by Miyoung Kim, Jamie Freed and Kim Coghill
면책조항: XM Group 회사는 체결 전용 서비스와 온라인 거래 플랫폼에 대한 접근을 제공하여, 개인이 웹사이트에서 또는 웹사이트를 통해 이용 가능한 콘텐츠를 보거나 사용할 수 있도록 허용합니다. 이에 대해 변경하거나 확장할 의도는 없습니다. 이러한 접근 및 사용에는 다음 사항이 항상 적용됩니다: (i) 이용 약관, (ii) 위험 경고, (iii) 완전 면책조항. 따라서, 이러한 콘텐츠는 일반적인 정보에 불과합니다. 특히, 온라인 거래 플랫폼의 콘텐츠는 금융 시장에서의 거래에 대한 권유나 제안이 아닙니다. 금융 시장에서의 거래는 자본에 상당한 위험을 수반합니다.
온라인 거래 플랫폼에 공개된 모든 자료는 교육/정보 목적으로만 제공되며, 금융, 투자세 또는 거래 조언 및 권고, 거래 가격 기록, 금융 상품 또는 원치 않는 금융 프로모션의 거래 제안 또는 권유를 포함하지 않으며, 포함해서도 안됩니다.
이 웹사이트에 포함된 모든 의견, 뉴스, 리서치, 분석, 가격, 기타 정보 또는 제3자 사이트에 대한 링크와 같이 XM이 준비하는 콘텐츠 뿐만 아니라, 제3자 콘텐츠는 일반 시장 논평으로서 "현재" 기준으로 제공되며, 투자 조언으로 여겨지지 않습니다. 모든 콘텐츠가 투자 리서치로 해석되는 경우, 투자 리서치의 독립성을 촉진하기 위해 고안된 법적 요건에 따라 콘텐츠가 의도되지 않았으며, 준비되지 않았다는 점을 인지하고 동의해야 합니다. 따라서, 관련 법률 및 규정에 따른 마케팅 커뮤니케이션이라고 간주됩니다. 여기에서 접근할 수 있는 앞서 언급한 정보에 대한 비독립 투자 리서치 및 위험 경고 알림을 읽고, 이해하시기 바랍니다.
