Asia retail trade press
By lens · 1 takes across the edition
Inside Retail Asia · Singapore · China's 618 festival grew just 4% as retail sales contracted for the first time since COVID reopening
Inside Retail Asia reported that merchant participation in 618 rose but average revenue per merchant fell, as Alibaba's Taobao, JD.com and Pinduoduo each ran aggressive discount wars that compressed margins while headline GMV stayed positive. The piece cited analyst commentary that the festival format, born in a high-growth decade, is now a margin-destruction vehicle in a low-growth environment, and that consumers have learned to time purchases to the discounting calendar without spending incrementally.
“Merchant participation in 618 rose but revenue per merchant fell as discount wars compressed margins; analysts described the festival as a margin-destruction vehicle in a low-growth environment.”