China's 618 Festival Ends Subdued as May Retail Sales Fall 0.6% and AI Shopping Tools Spread
Updated
Updated · Reuters · Jun 18
China's 618 Festival Ends Subdued as May Retail Sales Fall 0.6% and AI Shopping Tools Spread
3 articles · Updated · Reuters · Jun 18
Summary
China's 618 shopping festival is closing on a muted note after roughly 40 days of promotions, signaling weak consumer appetite despite one of the country's biggest annual online sales events.
May retail sales fell 0.6% year on year—the first decline since December 2022—as drops in autos, home appliances, furniture, jewellery and building materials pointed to pressure from the property slump and job insecurity.
Platforms also faced official pressure to curb cut-throat discounting, with Alibaba saying brands shifted toward protecting margins rather than chasing headline sales during this year's event.
Last year's festival generated 855.6 billion yuan in gross merchandise value, up 15%, but daily spending still fell; analysts expect only single-digit revenue growth this year, with results due next week.
AI became a parallel battleground for 618, with Alibaba's Qwen and rival tools used to test chat-based shopping, comparison and purchasing as platforms look for new ways to lift engagement.