618 shopping gala stimulates consumption

It is noteworthy that an increasing number of brands are moving toward starting their own normalized livestreaming sessions, reducing over-dependence on top livestreamers and nurturing new anchors, Yu said.

Furthermore, he added that domestic brands have stepped up investments in technological innovation, research and development while improving the quality of products to cater to demand from value-conscious consumers.

“Consumption has become the main driving force boosting China”s economic growth, and the June 18 shopping festival is pivotal to unleashing consumers’ purchasing potential and promoting the recovery of the economy,” said Wang Yun, a researcher at the Academy of Macroeconomic Research, which is affiliated with the National Development and Reform Commission, the country’s top economic regulator.

Wang said that domestic brands are increasingly gaining popularity among Chinese consumers, especially the post-90s and post-00s generations, who have a growing sense of national pride and confidence in Chinese culture.

China’s consumer market has witnessed a sustained recovery. Retail sales, a significant indicator of consumption strength, grew 4.1 percent year-on-year in the first five months, said the National Bureau of Statistics. Online retail sales jumped 12.4 percent year-on-year during the January-May period.

The country has rolled out a raft of measures to spur the consumption of products and services such as automobiles, electronics, housing and home decor amid its broader push to boost momentum and stabilize the economy.

More efforts should be made to stabilize and expand employment, improve household incomes, boost people’s ability and willingness to spend and propel the country’s economic growth, said Pan Helin, a member of the Ministry of Industry and Information Technology’s Expert Committee for Information and Communication Economy.

Industry insiders said chasing high gross merchandise volume, or GMV, is no longer the focus of the June 18 shopping carnival, while consumers are increasingly looking for cost-effective local alternatives as Chinese brands’ product quality and safety improve.

They added that Chinese consumer enthusiasm for the online shopping festival will not wane, but what e-commerce platforms should do is to improve supply chains, and optimize business and operational models in accordance with shoppers’ buying habits and preferences.

Mo Daiqing, a senior analyst at the Internet Economy Institute, a domestic consultancy, said it is of great significance for e-commerce platforms to adopt low-price strategies and offer cost-effective commodities, so as to attract a new breed of users and rev up sales.

Noting that Chinese consumers are more rational now and carefully review their needs, with an emphasis on quality and product value, Mo said online retailers have made promotional methods simpler this time, with direct price cuts being a preferred strategy, which is conducive to improving user loyalty and repurchase rates.

Moreover, both JD and Tmall are facing intensified competition from video-sharing and livestreaming platforms, including Douyin and Kuaishou, which are betting big on e-commerce in livestreaming formats, Mo added.

“Major Chinese e-commerce platforms have canceled presales for this year’s June 18 shopping extravaganza, simplifying the online shopping process and optimizing consumer shopping experiences and services,” said Dong Puyu, a researcher at CIO Manage, a Beijing-based digital economy market consultancy.

Dong said simplified promotional events and direct price cuts will help promote the healthy development of e-commerce and better protect the rights and interests of consumers over the long term.

However, the move may lead to intensified competition among e-commerce players and merchants need to adopt new sales strategies and adjust their inventory management models, he added.

Zhao Ping, deputy head of the Beijing-based Academy of China Council for the Promotion of International Trade, said China’s consumer market is expected to see a recovery of growth this year. He called for efforts to further cut taxes and fees for micro, small and medium-sized enterprises, expand employment and increase household disposable incomes to further perk up consumption.