618 shopping gala stimulates consumption

Workers sort packages at a logistics center in Suqian, Jiangsu province, on June 14. "Consumption has become the main driving force boosting China's economic growth, and the June 18 shopping festival is pivotal to unleashing consumers' purchasing potential and promoting the recovery of the economy," said Wang Yun, a researcher at the Academy of Macroeconomic Research, which is affiliated with the National Development and Reform Commission, the country's top economic regulator. Industry insiders said chasing high gross merchandise volume, or GMV, is no longer the focus of the June 18 shopping carnival, while consumers are increasingly looking for cost-effective local alternatives as Chinese brands' product quality and safety improve. Noting that Chinese consumers are more rational now and carefully review their needs, with an emphasis on quality and product value, Mo said online retailers have made promotional methods simpler this time, with direct price cuts being a preferred strategy, which is conducive to improving user loyalty and repurchase rates. "Major Chinese e-commerce platforms have canceled presales for this year's June 18 shopping extravaganza, simplifying the online shopping process and optimizing consumer shopping experiences and services," said Dong Puyu, a researcher at CIO Manage, a Beijing-based digital economy market consultancy.