According to the data released by e-commerce companies, on the first day of the “Double five Shopping Festival”, in Shanghai, Suning’s 5-hour sales exceeded the highest single-day peak of this year, and exceeded the sales record of the first day of the Shanghai Shopping Festival last year in 7 hours. The online and offline sales of Suning’s entire business format increased by 723%, and the number of mobile payments increased by 235%.
What is the “Double five shopping festival”?
Efficient implementation is needed of the important arrangements and requirements of the Party Central Committee and the State Council on stimulating domestic demand, unleashing consumption potential, and increasing consumption. To accelerate the construction of an international consumption city, Shanghai decided to introduce “Several Measures” and held the “Double five (May 5th) Shopping Festival”.
The Double five Shopping Festival allows customers to enjoy discounts all over the city for a period of time. It covers the entire second quarter and runs through many major festivals such as Labor Day, Children ’s Day and Dragon Boat Festival. Major e-commerce platforms, commercial enterprises, brand enterprises, terminal products, etc. of the city will widely participate in this festival.
It is reported that this shopping festival covers e-commerce, supermarkets, catering companies, department stores, shopping malls, fresh food, banks and other sectors, and the activities of major shopping malls vary.
Qian Fangli, director of the E-Commerce and Information department of the Ministry of Commerce, said that an important goal of the shopping festival is to alleviate the impact of the COVID-19 and stimulate domestic demand.
Domestic consumer demand was affected by the COVID-19 outbreak. The total retail sales of the first quarter was 785.8 billion yuan, with a year-on-year(yoy) decrease of 19%. However, the format of new online-related consumption has an eye-catching performance with a 5.9% yoy growth of online physical goods sales, and the growth rate was 2.9% faster than that from Jan to Feb. Online shopping is now proving to be the way to boost domestic demand.
The current situation in China is the critical period for resuming production and stimulating consumption. Ecommerce plays an important role in promoting agricultural products. A main purpose of the shopping festival is to help the sales of agricultural products in areas that heavily affected by the epidemic. At the same time, it can also help enterprises who focus on producing goods for foreign trade to expand sales channels in domestic market.
At 8:15 pm on May 5th, Wu Minxia, Olympic champion and deputy secretary of the Shanghai Municipal Party Committee, entered the Taobao live broadcast room and formed a “Xiaqi Lingguang” combination with Taobao anchor Li Jiaqi to bring goods to the “Shanghai brand” domestic products.
Shortly after 0:01 am on May 5, Shanghai merchandise sold over 100 million yuan on Tmall. Among them, new retail became the main engine of Shanghai’s consumer replenishment and potential releasement. Eleme, Koubei and Hema’s sales increased sharply.
Government working with ecommerce giants to create shopping festivals, using online channels to boost offline sales. New business models appears in Shanghai, and China leads the development trend of the world’s economy after the COVID-19 outbreak. What we can expect in the future? Please follow us on WeChat and LinkedIn for future update.
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