'618' festival rings up strong sales at home and abroad

Top priority

This year's Government Work Report listed boosting consumption and expanding domestic demand as a top priority for 2025.

In January, a raft of measures was announced to expand the scope of the consumer goods trade-in program. They included increasing funding from 150 billion yuan last year to 300 billion yuan this year, and expanding government subsidies for categories of home appliances and electronic products such as smartphones, tablets, smartwatches and wristbands.

Denis Cheng, consumer sector leader of EY Greater China, said the trade-in program had reduced costs for consumers purchasing new products of better quality and higher performance.

This updated program will also help improve the service quality of e-commerce platforms and boost the development of related industrial chains, including those involved in the recycling, dismantling and reusing of products, Cheng said.

Jason Yu, general manager of CTR Market Research, said the expansion of the trade-in program had motivated consumers to shop, and pushed up the sales of electronic devices and home appliances on online marketplaces.

The popularity of high-end, intelligent and energy-saving commodities had not only increased, but also boosted people's quality of life, he said.

Online retailers simplified promotional methods during the 618 festival to improve consumers' shopping experience. Chinese shoppers attach great importance to the quality of a product as well as its value, and are inclined to purchase premium items that are cost-effective, Yu said.

"It is noteworthy that e-commerce players have stepped up support for small and medium-sized merchants during the online shopping festival," he added.

Against the backdrop of tariff increases from the United States, steps have been taken to help the country's exporters sell their products at home to relieve pressure on exports, Yu added.

Wang Yun, a researcher at the Chinese Academy of Macroeconomic Research, said consumption has become the main driving force of China's economic growth.

"The 618 online shopping extravaganza is vital for unleashing consumers' purchasing potential, bolstering domestic demand and shoring up the economy amid external uncertainties," Wang said.

Mo Daiqing, a senior analyst at the Internet Economy Institute, a domestic consultancy, said while Chinese consumers' enthusiasm for the 618 festival is unlikely to wane, work still needs to be done by e-commerce platforms. Mo suggested they improve supply chains and logistics networks, optimize operational models, and offer customized goods and services in accordance with different groups' demands, while undertaking brand upgrading and product innovation.

China's retail sales, a significant indicator of consumption strength, rose 4.7 percent year-on-year during the January to April period, accelerating from 4.6 percent growth recorded in the first quarter, according to National Bureau of Statistics data. Online sales remained a bright spot, rising 7.7 percent year-on-year in the first four months.

Last year, the final consumption expenditure contributed 44.5 percent to the nation's GDP growth — surpassing investment and exports — and drove a 2.2 percentage point increase in GDP, said the NBS.

Yu, from CTR Market Research, said he is confident that the country's consumer market is poised for steady growth this year, driven by supportive measures to boost consumption.