China's Biggest Online Shopping Festival A Huge Flop

China's first major online shopping festival since lifting its strict COVID restrictions at the end of last year was a big flop despite household savings hitting a record high, Nikkei Asia's Cissy Zhou wrote.

Photo Insert: Online retailer giant JD.com's delivery robots in its smart logistics center in Shenyang.

The muted results for 618, named for the date it originally started on, were not only a blow to the momentum of e-commerce giants JD.com and Alibaba Group Holding. More important, economists said, they underscored China's economic woes.

Weak consumer spending continues to stand in the way of a robust economic recovery, even as Beijing tries to shift from the country's growth model from one driven by exports and property to one led by consumption.

The paradox is that many shoppers have more money in their bank accounts, but they still aren't spending as uncertainty about the job market and the overall economy saps consumer confidence.

Some are warning that the old golden era of online extravaganzas may be gone for good.

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