The Last Major Consumer Event of the First Half of the Year in China, 6·18, Begins

Overlapping Discounts with Company Deals and Government Subsidies All-In to Boost Domestic Demand
Concerns Over Growth Limited to Chinese Online Market

[Asia Economy Beijing=Special Correspondent Jo Young-shin] The '6·18 (June 1 to 18)' shopping event has started in China, where domestic consumption has significantly worsened due to lockdown policies amid the resurgence of COVID-19.

Photo by XinhuaNet Capture

The 6·18 event is considered one of China's two major online shopping discount events alongside the Singles' Day (11·11). As it is the last chance to boost consumption in the first half of the year, the Chinese business community is closely watching the results of the 6·18 event.

On the 2nd, Chinese media including Xinhua Net reported that the curtain rose on the 6·18 shopping event the previous day and that the 6·18 event will serve as a stepping stone for economic recovery in the second half of the year.

Led by JD.COM, China's second-largest e-commerce company, this event also involves online platforms such as Taobao, Tmall, Suning.com, and Pinduoduo, all participating to stimulate domestic consumption.

During last year's 6·18 event period, sales reached 578.48 billion yuan (approximately 108 trillion KRW). Consumption exploded in less than three weeks.

This year, the discount rates have increased further. In addition to discount events conducted by each platform company, government subsidies (coupons) are added to reduce prices. During the event period, platform companies offer a 50 yuan discount for every 300 yuan spent. Some platform companies provide additional cash coupons. Unlike previous years, this year's event allows overlapping discounts. Digital and home appliances such as smartphones and computers receive up to a 15% discount through government subsidies.

Consumption ignited from the first day of the event. JD.COM and JD Home Shopping's sales on the 1st increased by 175% compared to the previous year, and orders for home appliances rose by more than 200% year-on-year.

Professor Wang Feng of Renmin University said, "This year's event is unprecedented, combining individual platform company discounts with government-issued consumption coupons for overlapping discounts," and added, "As pent-up (revenge) consumption occurs, the ripple effects on related industries will be significant."

In fact, ZTO Express announced that as of 7:38 PM on the 1st, the number of parcels to be delivered exceeded 100 million.

Chinese media expect retail sales to rebound significantly through this event, despite a sharp decline in consumption in April and May due to lockdowns in major cities amid the resurgence of COVID-19.

Within China, although lockdowns in some cities such as Shanghai have been lifted, concerns remain that consumption may be limited to online channels due to ongoing movement restrictions. The tourism and tertiary industries such as airlines, railways, and hotels remain immobilized, raising concerns that China's economic growth may be abnormal.

This content was produced with the assistance of AI translation services.