Consumption soft even amid deep discounts during major China shopping festival, analysts say

Chinese consumers have been snapping up billions worth of items in China’s first major online shopping festival after emerging from the pandemic as merchants slash prices, but analysts say that consumer confidence still remains weak as China re-emerges from the pandemic. Chinese merchants offered customers steep discounts during the 618 shopping festival in the hopes of shoring up sales amid a weaker-than-expected recovery in consumption. Analysts say consumer confidence remains soft as consumers are more price-conscious amid economic uncertainty. However, unexpected winners of the shopping festival are luxury brands, some of whom are selling online for the first time and offering discounts to boost sales after the sector contracted in China for the first time last year.