Economic Watch: China's "618" shopping festival shifts focus to quality amid policy-driven upgrades

BEIJING, June 19 (Xinhua) -- Ushering in the summer shopping season in high gear, China's "618" shopping festival -- originally launched around June 18 but now spanning several weeks -- has highlighted a broader shift toward upgraded, quality-driven consumption.

As of Wednesday midnight, e-commerce giant JD.com reported over 2.2 billion orders across its online, delivery, and offline channels, with the number of customers who placed orders more than doubling year on year. Peer platform Tmall also saw record engagement, with 453 brands each generating over 100 million yuan (13.94 million U.S. dollars) in sales, marking a 24 percent increase from last year.

Driving this year's robust consumer response was a nationwide trade-in program for consumer goods, supported by 300 billion yuan in ultra-long special treasury bonds along with matching or self-arranged contributions from local governments, incentivizing households to exchange old products for new ones.

JD.com and Tmall launched dedicated trade-in channels combining government subsidies with platform discounts, cutting thousands of yuan off the cost of big-ticket purchases.

The impact was clear across major categories on JD.com, with mobile device sales rising 88 percent year on year, and home appliances surging 161 percent.

Analysts called the alignment of national subsidies with the shopping festival a timely catalyst for durable goods upgrades, with the potential to bolster related sectors and reinforce domestic demand.

Complementing this policy-driven boost was a parallel shift in consumption patterns. From rapid delivery services to lifestyle-driven spending and AI-powered retail tools, the mid-year shopping festival offered a glimpse into China's evolving consumption landscape.

INSTANT RETAIL EMERGES AS NEW GROWTH DRIVER

One of the most striking trends of this year's 618 festival was the boom in instant retail, a form of on-demand shopping with ultra-fast delivery that bridges online and offline channels.

Experts view it as a key growth driver, enabling high-frequency, full-scenario shopping while helping to unlock offline inventory.

JD.com's takeaway business saw rapid expansion, with full-time couriers topping 120,000 by June 17, up from 100,000 just two weeks ago. Daily orders surpassed 25 million as of June 1, and over 1.5 million branded restaurants have joined the platform.

During the initial week of Meituan's 618 flash sales, transactions in over 50 high-value categories more than doubled year on year, led by an eightfold increase in smart devices and a fivefold rise in e-learning products.

Ouyang Rihui, deputy director of the China Center for Internet Economy Research at the Central University of Finance and Economics, said instant retail is expanding 618's impact beyond online subsidies to offline consumption, creating a virtuous cycle with traditional retail.

By directing digital traffic to physical stores, it helps boost consumption and strengthen the retail sector, he added.

LIFESTYLE CONSUMPTION GAINS MOMENTUM

The 618 shopping season also spotlighted a new wave of lifestyle-driven consumption, as spending expanded beyond daily essentials into areas like collectibles, pet care and leisure.

Tmall reported strong triple-digit growth in overseas orders for "guzi" merchandise, a catchall term for spin-off goods tied to anime, music and gaming, with most of them linked to domestic IPs. Pet products also saw a spike, with 653 brands doubling their sales in the first hour.

Meanwhile, gross merchandise volume in ticketing jumped nearly 556 percent year on year, while leisure and entertainment grew by 55.4 percent and streaming by 54.84 percent, respectively, according to industry data.

Analysts noted that the surge in lifestyle spending, from smart gadgets and fitness to personalized hobbies, reflects rising living standards and a wider shift toward quality-focused consumption.

AI-POWERED RETAIL BOOSTS EFFICIENCY

AI played a bigger role in this year's 618 festival, helping merchants cut costs and redefine how they connect with consumers.

JD.com said that its use of large language models during this year's 618 festival increased by 130 percent compared to last year's Singles' Day, China's another major online shopping event held annually around Nov. 11.

More than 14,000 AI agents and digital employees were deployed across its platform, while 17,000 merchants used virtual hosts for livestreaming on JD.com. These AI presenters cost just a tenth of their human counterparts.

"We used AI to instantly generate try-on videos by selecting outfits, models and scenes," said a manager of a fashion brand. "It helped us rapidly build a video library and enhance visual presentation during the sales rush."

JD Cloud introduced five free AI-powered marketing tools for certain merchants, with its digital avatars supporting over 13,000 brands. Meanwhile, Taobao launched an image-to-video tool that produced more than 1.5 million promotional clips for merchants in just over a month.

According to Chen Lifen, a researcher at the Development Research Center of the State Council, AI is becoming a major engine for unlocking consumer potential and driving industrial upgrades.

As the technology continues to mature and its applications expand, AI is expected to play an increasingly significant role in delivering more personalized and diverse retail experiences, Chen said. Enditem