Express parcels pile up outside a residential area in Shanghai on June 8, 2022. According to the Shanghai Postal Administration, all major express delivery centers in Shanghai have fully resumed operations. The express industry is expected to recover to about 70 percent of the normal daily average level by mid-June. Photo: VCG

Strong sales are seen for this year's 618 mid-year shopping festival as shopping lists are disclosed and researchers make bullish estimates as China's consumption recovers from epidemic flare-ups in April and May. Particularly, in Shanghai, which is speeding up the recovery, residents are splurging on everything from home appliances to fresh food.

After China's retail sales fell by 11.1 percent in April and key consumption strongholds, Shanghai and Beijing, emerged from strict anti-epidemic controls just in time for the 618 online shopping festival, the performance of the consumer holiday is seen as deciding the fortunes of the Chinese retail sector by some analysts. 

Sharry Wu, EY greater China consulting business transformation leader, told the Global Times on Tuesday that EY predicts the scale of this year's 618 Festival at Taobao alone will exceed 250 billion yuan ($37.12 billion), maintaining a growth rate over 15 percent compared with 2021.

"Some recent research of ours shows that more than 53 percent of consumers expressed strong interest in purchasing food and beverages, cosmetics and household appliances during the 618 festival, and more than 50 percent of them would like to try new brands online," Wu said.

In Shanghai, China's largest consumption stronghold posting retail sales of 1.81 trillion yuan in 2021, consumers are seen buying home appliances, consumer electronics and fresh food, domestic financial news outlet yicai reported, citing data from major e-commerce platforms, including JD.com. 

In particular, a 31-percent year-on-year increase for home appliances was recorded, and fresh food increased by 192.1 percent.

Shanghai ranked No.2 on JD's list of top Chinese spending cities.

In another sign of Shanghai's solid recovery, on Tuesday, Shanghai Disney Resort further proceeded with its gradual and partial reopening trajectory by announcing the opening of the Disneytown and Shanghai Disneyland Hotel on Thursday, in addition to the Wishing Star Park, the World of Disney Store and Blue Sky Boulevard, which opened last week. Disneyland and Toy Story Hotel will remain closed.

During this year's 618 campaign, major e-commerce platforms have announced their biggest shopping discounts in recent years with a reduction of about 50 yuan for every 300 yuan spent. The large sales promotions by platforms and vendors overlaps with the issuance of large volumes of shopping vouchers issued by local governments to stimulate consumer confidence.

Experts said that the 618 shopping binge will be a boost to consumption data, a drag on the economy compared with that of investment and exports, and will pave the way for an economic rebound in the second half this year.

Li Changan, a professor at the Academy of China Open Economy Studies of the University of International Business and Economics, told the Global Times on Tuesday that the mid-year online shopping holidays will be a booster for June consumption, which will see a recovery from the valleys of April and May, when Shanghai and Beijing were facing outbreaks.

The unprecedented scale of promotions, which are overlapping with the large amount of consumption coupons and the release of pent-up demand, will be add-ons, Li said, and coupons are expected to drive actual spending with a 1:4 ratio.

Getting goods purchased online in a fast manner has always been a key element of China's e-commerce development. 

Alibaba's Cainiao Smart Logistics said in a statement sent to the Global Times on Tuesday that its ultra-fast delivery orders for the 618 online shopping festival increased by 110 percent year-on-year, with 90 percent of purchased goods reaching customers within 48 hours. 

Graphic: GT