Second phase of 618 Shopping Festival saw sharp slowdown, large downward adjustment of GMV expected – Jefferies
DATA VIEWS & ANALYSIS
Second phase of 618 Shopping Festival saw sharp slowdown, large downward adjustment of GMV expected – Jefferies
DATA VIEWS & ANALYSIS

Second phase of 618 Shopping Festival saw sharp slowdown, large downward adjustment of GMV expected – Jefferies

 

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E-commerce GMV for sports goods and home appliances brand during this year’s 618 Shopping Festival in China grew 10% – 15% from a year earlier, based on figures for Li Ning, Fila brand by Anta Sports, Haier and Gree, lower than the brands’ expectations, Jefferies said in a note.

The second phase of the event, which started in the second week of June, has seen a sharp slowdown in growth compared to the first phase, although discounts remained higher, the bank said.

The pre-sale for this year’s event started earlier and the discounts were steeper, leading to a more than 20% year-on-year growth in the first phase, however, except for air conditioners, the second phase of growth was mediocre, it said.

Jefferies estimated that the cancellation rate of mainland consumers may reach a record high and this year’s 618 promotion will see the most significant downward adjustment of GMV, it said.