JD.Com Inc (NASDAQ:JD) reported sales amounting to $34 billion during China’s biggest online shopping gala, the first since the outbreak of COVID-19. The sales are a strong indication of a rebound in the country’s consumer spending. Then gala was organized to set the level of consumption in the country after the lockdown. JD partnered with Alibaba Group Holding Ltd to organize the shopping extravaganza.
The retailers are using the extravaganza to increase sales and make up for the losses caused by Coronavirus lockdown. JD recorded $34 billion in sales, an increase of 33% from what was reported during the same period last year. The company has already surpassed last year’s total sales.
For several months, retailers have been stocking up goods in anticipation of the summer event. The sale trends are a mirror of how the Chinese are willing to spend after the economy shrunk as a result of Coronavirus lockdown. Many retailers are optimistic as the 18-day shopping event comes to an end. JD organized the event to commemorate its June 18 anniversary.
This year’s event will end with the biggest bargains on Thursday. The extravaganza has already attracted huge subsidies that ever reported plus several online live-streaming personalities. There was high competition from the likes of ByteDance Ltd. and Kuaishou, who sell JD good. Xu Lei, JD Retail Chief Executive Officer, said the event has been a perfect comeback for many Chinese and foreign brands, which has had sluggish sales as a result of the pandemic.
The Pandemic caused record collapse in sales
In the wake of COVID-19, many Chinese reported record fall in sales during the first quarter of 2020. Although sales are starting to pick up, data shows that private consumption is still at its lowest, diminishing hopes of an exponential return as people head back to their workplaces. In addition, the situation has been complicated because retail stores remain closed, and many people shift to online shopping. JD expects revenue to grow by between 20% and 30% this quarter.