Alibaba, JD Lead 618 Festival to Record Highs, Yet Consumer Spending Per Day Declines

Record Gross Merchandise Value (GMV): The festival generated a combined GMV of 855.6 billion yuan (approximately $119 billion), marking a 15% increase compared to the previous year. This growth was partly attributed to an extended sale period, which lasted an additional week, according to data from retail analytics firm Syntun cited in the report.

Reduced Daily Spending: Despite the overall sales increase, Reuters' calculations show that the average daily spending during the festival dropped to 23.1 billion yuan, down from 24.8 billion yuan in the prior year. This decline points to a potential weakening of consumer confidence or purchasing power.

Government Intervention: In an effort to revitalize sales amidst a prolonged economic downturn, the Chinese government has recently implemented subsidies across various consumer products and encouraged e-commerce platforms to maintain low fees.

Evolution of 618: Originating as a single-day event commemorating JD.com's founding on June 18th, the "618" festival has expanded into a month-long shopping extravaganza, now widely adopted by all major e-commerce platforms in China.

Platform Performance: Alibaba's Tmall led in sales performance during this year's event, followed by JD.com, ByteDance's Douyin, and PDD's Pinduoduo. Specific absolute sales figures for individual platforms were not detailed in the report.

Brand Success and User Engagement: JD.com reported a more than twofold increase in the number of users placing orders during the 618 event. Alibaba noted that 453 brands each surpassed 100 million yuan in GMV over the sales period. Prominent brands that garnered significant consumer interest included Apple, Xiaomi, Huawei, Nike, Adidas, L'Oréal, and Lululemon. The mixed results of the "618" festival, characterized by record overall sales but a dip in daily spending, underscore the ongoing challenges in stimulating robust consumer demand within the Chinese economy.