China is in the middle of the 618 festival, bringing some eCommerce giants to attract the target audience. Some of the eCommerce giants which participate with all their resources are Alibaba and JD.com. They are going to attract shoppers with discounts and many promotions.
The country’s festivals getting affected by China’s connection with Covid-19. The economic fallout is due to the pandemic. The country was worst affected, too, by the lockdown. The financial powerhouse, Shanghai, was one of the affected cities. Consumer buying power is also affected by it. As a result, economists are trying to cut the growth outlook for China.
It was in the first quarter that Chinese eCommerce giant Alibaba showed the slowest revenue acquisition. This was due to the fall of the global economy and increase regulation in the domestic sector.
Sharry WU, EY’s consulting business transformation leader, stated, “As cities reopen, we should expect a huge boost in online consumption, in addition to footfall returning to stores. Although we are seeing a clear trend of downward growth rates for major shopping festivals, every e-commerce platform is presenting its largest promotion scheme ever to attract consumers back online this summer…
Overall, we are confident that the appetite for consumption in China remains strong, but we do expect consumption to be less diversified, with a heavier focus on organic food items, home appliances, personal care, etc.”
The transaction volume of the overall eCommerce giant valued at 578.5 billion yuan. The analysts in the country are expecting slow growth this year. However, there is the expectation of a 20% increase in the year. Consumers buying power is to increase with better discounts from eCommerce giants.
JD.com and Alibaba are both trying to lure more customers. With almost a 50 yuan discount on every 299 above order at JD.com, Alibaba shoppers are also going to freeze the product till July 5 too. However, some analysts are expecting it to go down than the earlier years.