Shanghai: Double Five Shopping Festival Topped US$2.2 billion in 24h

08/05/2020

Chinese buy more groceries online, snap up laptops amid coronavirus. The two-month Shanghai Shopping Festival is already a record thanks to e-commerce

 

Double Five Shopping Festival got off to strong start.  According to media, consumers in Shanghai have splurged US$2.2 billion during the first 24 hours of the eastern city’s Double Five shopping festival, that officially started on the evening of May 4. Imported goods fairs and various promotional campaigns are being staged by the city’s home and foreign retailers, while online discounts were sought after by shoppers as consumption sentiment built up during the Labor Day holiday.

The city’s two-month-long May 5th Shopping Festival with its more than 700 promotional events is part of the regional administration’s efforts to rekindle consumer demand amid the easing Covid-19 epidemic. And the first data marked very interesting tendencies.

 

1. Cross- border: People Seeking For Imported Goods 

 

According to data, the penetration of ecommerce in China has reached 71.1% of the total Chinese population. Cross-border e-commerce is the main driver of online sales and (before pandemic) consumptions had seen a real booming in 3rd tier and 5th tier cities. By the way 1st tier such as Beijing or Shanghai are still on top list for buying power. And Shanghai consumers are asking for imported goods. Metro China’s spring sales fair, which starts May 5th, included 500 types of imported goods from more than 30 countries and regions.

 

2. Livestreaming E-Commerce is the New Normal

Double Five Shopping Festival off to strong start

 

The number of online live-streaming service users in China reached 560 million as of March 2020, accounting for 62% of the country’s total number of 904 million internet users, according to a report on China’s internet development. Is not a surprise that brands and e-commerce platforms decided to follow this trend.

Five-time Olympic Games champion diver Wu Minxia, a Shanghai native, was joined by top Taobao live host Li Jiaqi on Thursday night for a livestream to sell local products, media said. The duo attracted more than 3 million viewers in 20 minutes and promoted old big brand such as Maling or Bright Diary. Taobao live hosts and merchants held more than 10,000 livestreams to help sell to consumers nationwide.

 

3. Digitalization & e-coupon

One of the key way due to quickly recover Chinese economy, is booting consumptions thanks to digital coupons. In more details, several Chinese provinces and cities on late Aprile, already issued vouchers, delivered to users via third-party platforms such as payment app Alipay and WeChat pay. Brands are embracing this policy too. Sales of Koubei’s online coupons for dining and entertainment from May 1 to May 4 more than doubled from a month ago, while top retailers like Walmart, Muji, H&M, Starbucks and Lyfen were also using WeChat payment’s mini program to give away coupons worth a total of 2 billion yuan.

Pinduoduo users have received some 2 billion yuan worth of coupons and used 500 million yuan of them as of Monday afternoon and Suning-Carrefour digital coupons also covered offline stores and online delivery services. Alibaba announced at the Double Five festival launch event that it would save consumers up to 2 billion yuan through online discounts on its Tmall marketplace and Freshippo, while JD.com announced it would give out 2 billion yuan worth of online coupons and discounts during the festival through 618 mid-year sales events on its platform.

 

4. What to Buy? Fresh Food First

Double Five Shopping Festival off to strong start

Consumer sentiment has been dampened by the pandemic and they’re buying much more online, especially daily groceries.  Dingdong Maicai, a local online fresh food vendor, said since the Labor Day holiday average daily sales in Shanghai climbed 40 percent from normal days to about 30 million yuan. In Shanghai it now serves around 6 million households, doubling from the user base before the coronavirus epidemic outbreak.

It has also offered online cooking tutorials to help shoppers select ingredients, according to media. Alibaba’s Freshippo stores in the city, reported +40% in sales in the first three days of the Labor Day holiday. Not only food. According to Alibaba, multinational giants like Nike, adidas, Lancome and local brands such as Dr Yu, HotWind and Shuixing Home Textile were among top-selling brands on Alibaba’s Tmall. Moreover, the beauty products sales had reported a terrific growth too.

 

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