China's Biggest Shopping Festival Sees Sales Drop As Shoppers Tighten Budgets

(MENAFN- The Rio Times) China's biggest mid-year shopping event, known as the 618 Festival, finished this week with little excitement from shoppers. The festival, which started as a one-day sale by JD, now lasts over a month and includes all major online shopping platforms in China.

This year, official figures show that total sales during the festival dropped by 7% compared to last year, reaching $103.31 billion. This is the first time sales have fallen for this event.

Even though companies offered bigger discounts and the government gave out subsidies to encourage spending, many people chose not to buy more Chinese families worry about job security, slow wage growth, and problems in the housing market.

Because of these concerns, they now spend less on things they do not need. Shoppers say they only buy what is necessary, even when there are big sales.

The long festival and frequent discounts throughout the year mean people no longer feel pressure to buy during these special events. JD said the number of people placing orders more than doubled from last year, with over 2.2 billion orders.



However, this did not lead to more money spent overall. Alibaba reported that 453 brands made over 100 million yuan (about $13.91 million) each during the festival.
Robust Retail Growth Meets Consumer Caution
Top brands like Apple, Xiaomi, Huawei , Nike, Adidas, L'Oréal, and Lululemon each sold over $139 million worth of goods the slow festival, China's official data shows that retail sales in May grew by 6.4% compared to last year.

This is the fastest growth since December 2023. Analysts say this happened because the 618 sales started earlier and government subsidies helped boost purchases of electronics and home appliances.

For example, sales of smartphones between 4,000 and 6,000 yuan rose by 50%, and sales of AI-powered laptops increased by 151%.This year's 618 Festival shows that Chinese consumers have become more careful with their money.

They are less interested in big sales events and more focused on buying only what they need. This change is important because China 's shoppers influence global brands and supply chains.

When people in China spend less, it affects businesses around the world. The quiet end to this year's festival shows that retailers must find new ways to attract careful shoppers in a changing economy.

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