China’s “618” sales festival sees first decline in eight years amid economic challenges.

China’s annual “618” mid-year e-commerce sales festival recently experienced a decline in sales for the first time in eight years. This event, which is China’s second-largest in terms of annual sales, serves as a barometer for household consumption. According to data from Syntun, the gross merchandise value (GMV) during this year’s 618 festival fell by 7% compared to last year, amounting to 742.8 billion yuan ($102.3 billion). Despite some companies extending their 618 sales period, weak consumer confidence persisted due to various challenges faced by the world’s second-largest economy, including high youth unemployment and a prolonged property crisis. Interestingly, social media platforms with live streaming also contributed to sales, generating a GMV of 206.8 billion yuan ($28.4 billion) during this year’s festival. While overall sales declined, some traditional e-commerce platforms, such as JD.com, reported positive results. It’s a notable shift in a market that had previously seen consistent growth during the pandemic years