Trends that Shaped China’s E-commerce Scene in H1 2024

In H1 of 2024, we’ve started to see exciting consumption data across goods and services sectors.

We’ve just wrapped up 6.18, China’s second-largest shopping festival, which showcased encouraging trends despite mixed reports. WPIC’s assessment is that overall gross merchandise value (GMV), a barometer for sales, was up from last year and set a record high, contrary to some reports suggesting a decline.

While there may have been less buzz around the shopping festival, that indicates a maturing market with consumers spreading their spending more evenly throughout the year, influenced by the rise of livestreaming (where popular hosts routinely offer discounts) and secondary shopping festivals. The big festivals are less remarkable with discounts available year-round, so consumers don’t mark their calendars to stock up on goods and make big purchases at a discount. But despite this sense of a lack of buzz, consumers still spent a record high on this year’s 6.18—because they are spending more, period. 

A strong 6.18 built on a strong first half of 2024. China’s e-commerce logistics index, which tracks e-commerce shipping volume, gained for the fourth straight month in June, indicating healthy growth in domestic demand.

Travel numbers also offer a positive indicator for consumer confidence. Data from June’s Dragon Boat Festival showed a significant increase in travel: 17 million rail rides, up from 16.2 million the previous year, and a 20% increase in local bookings with a 50% rise in outbound hotel bookings, according to Trip.com. Qunar reported that outbound flight bookings for the summer surged by 1.6 times compared to last year, with ticket prices decreasing by about 20%.

Popular international destinations include Malaysia, Japan, Thailand, the US, South Korea, Singapore, Australia, the UK, Indonesia, and Canada. This trend builds on momentum from May Day, where international flight bookings hit record highs, and domestic travel bookings doubled those of 2019.

Chinese travelers are increasingly favoring small group and solo trips, particularly road trips, seeking authentic experiences and adventures over traditional tourist sites. Overall, Chinese outbound travel has risen by 392% in 2024, indicating renewed consumer confidence and a strong willingness to spend, which is beneficial for brand partners.

As Alibaba chairman Joe Tsai noted during the firm’s last earnings call, Chinese consumers currently hold record-high household cash savings, approximately $19 trillion, indicating a strong capacity to spend. The property market’s impact makes consumers cautious, yet several indicators point to growing consumer confidence.

The growth in the services sector during recent holidays, a strong 6.18, increased spending on discretionary items like apparel and electronics, and strong performances in personal care, pet, and nutraceuticals segments support this view. Additionally, travel bookings set records, reflecting robust consumer confidence for the rest of 2024.