Chinese retail giants tried to juice spending with iPhone and Lululemon discounts in an annual shopping bonanza

In recent weeks, Alibaba offered a 50% discount on Lululemon clothing, JD.com sold some Apple iPhones at discounts as high as 20%, and TikTok’s sister company Douyin cut prices aggressively.

Luxury brands, which are seeing a purchase slowdown in China, joined the festival, too. Burberry livestreamed its 618 discounts, while Louis Vuitton offered shoppers a 30-minute virtual personalized shopping experience on WeChat.

After the end of 618, Alibaba and JD.com said sales grew, but neither reported specific figures.

According to figures from Syntun, a Chinese third-party data agency, total sales on Alibaba’s Tmall, JD.com, and Pinduoduo fell 6.9% year-on-year. Total sales during the festival were 742.8 billion yuan, or $102.3 billion, the first time sales dropped in the eight years since Syntun started collecting data.

Home appliances, skincare, cosmetics and perfume, and personal care products were the top three categories in terms of sales, according to the data company.

The drop comes amid China’s slow post-pandemic recovery, as people exercise caution with their discretionary spending. According to a research note fromDutch bank INGpublished in May, Chinese consumers are cutting spending on clothing, cosmetics, and jewelry and instead choosing to spend their money on experiences like dining and sports. They are also flocking to safe haven investments like gold and supporting local manufacturers, instead of spending on overseas luxury brands like Gucci, Apple, and Starbucks.