China's Retail Outlook Dims As Mid-Year Shopping Fest Flops

Retailers in China face a challenging near-term future after the mid-year online shopping 618 festival underperformed, dimming recovery prospects of the world's second-largest economy, Casey Hall reported for Reuters.

The event once showcased the rise of Chinese consumerism, providing a reliable bump in sales for platforms and brands alike. I Photo: Hal 0005 Wikimedia Commons

The festival, named after the June 18 founding date of e-commerce provider JD.com but embraced by all platforms, is China's second-biggest annual sales event after “Singles Day” in November and is seen as a key indicator of household consumption.

The event once showcased the rise of Chinese consumerism, providing a reliable bump in sales for platforms and brands alike.

However, this year, the 618 festival has shown how hard it is to get consumers to spend.

Alicia Garcia-Herrero, Asia Pacific chief economist at Natixis, commented, "Chinese spending has been basically focused on sales opportunities and coupons. If they're not spending during this (618 sale), when on earth are they going to consume?"