Press Release for Media Briefing of the Shanghai Municipal Government on June 3, 2020
June 04, 2020
The Information Office of Shanghai Municipality held a press conference today (June 3), during which Hua Yuan, director of the Shanghai Commission of Commerce, introduced the progress of the Double Five Shopping Festival and the key activities in the next phase. Liu Min, deputy director of the Shanghai Commission of Commerce, Cheng Meihong, deputy director of the Shanghai Administration of Culture and Tourism, Xu Ziying, president of Bailian Group, Han Rui, vice president of JD Group, and Ding Zhixiong, senior vice president of Dewu APP, also attended the press conference and jointly answered questions from reporters.
The effect of the Double Five Shopping Festival continues to increase, and effectively boosts consumption
As the first large-scale consumer festival created by Shanghai, the Double Five Shopping Festival is over halfway through. By the end of May, 84 key activities and more than 470 special events had been held, as it played an important role in expanding domestic demand, addressing pent-up consumer demand and releasing growth potential.
Online sales maintained rapid growth. In May, the city’s online retail sales amounted to nearly 100 billion yuan, of which sales of physical goods increased by 13% year on year. According to the city’s post office, the number of pieces shipped by major delivery companies increased by 17.9% year on year. For example, the sales of Pinduoduo’s Shanghai-based merchants and brands, and the sales of Dingdong Maicai in Shanghai both more than doubled year on year. Brick-and-mortar merchants continued to pick up momentum. As consumption by out-of-towners was still in the recovery stage and merchants maintained discounts and promotion efforts, the city’s offline consumption of physical goods in May, which was monitored via big data on the payment side, was 144.36 billion yuan, basically recovering to the level of the same period last year. The sales of some key sample companies grew rapidly. For example, sales of Shanghai Village, No. 1 Yaohan, and New World Daimaru increased by 66.9%, 45%, and 18%, respectively, year on year. Key industries maintained growth. Data from key sample companies showed that auto sales in May increased by 8.9% year on year, SAIC Group’s cumulative orders in Shanghai increased by 29.8% year on year, and sales of eight major dealers including Yongda, Dongchang and Guanghui increased by 16% year on year. The sales of cosmetics, food and clothing/shoes/hats achieved double-digit growth, with a year-on-year growth rate of 15%, 12.7% and 10.7%, respectively. Major brands such as Huawei have released new products, driving sales of communications devices to grow 5.7% year on year. Catering consumption accelerated the recovery, with sales up 26.6% month on month. According to statistics from the Shanghai Commercial Trade Association of Household Electric and Electronic Appliances, the home appliance market has risen against the trend, with industry-wide sales up 41% year on year. Consumer traffic in key business districts continued to pick up. Nanjing Road E., Nanjing Road W., Little Lujiazui Area, Wujiaochang, Xujiahui, Middle Ring Road (Zhenbei) and Hongqiao Business District experienced growth of consumer traffic of 62.3%, 23.5%, 59.9%, 35.4%, 41.2%, 33.7% and 55.3% month on month, respectively. Sales increased by 143.6%, 43.6%, 126.6%, 67.7%, 84.3%, 63.9% and 41.2% month on month, respectively. The consumption environment has been more optimized. A “worry-free” themed consumer campaign has been launched. The integrity index of key business districts has been released. The 7-day return policy has been promoted. The number of complaints received by the Shanghai Consumer Rights Protection Commission in May decreased by 12.8% year on year.
The Double Five Shopping Festival mainly presents five characteristics:
First, the city promoted consumption with themed activities. In the global new product launch season, 52 well-known domestic and foreign companies and brands have held 73 new product launch events. For example: Lego’s world premiere of LEGO® Monkie Kid™ series has attracted attention from 2 billion people worldwide; L’Oréal launched the “Latest New Season” campaign, with more than 100 premieres including new brands, new products, new technologies, and new stores. More than 170 established Chinese brands have held more than 200 special events to promote the new fashion of local time-honored brands, covering more than 2,000 offline brand stores, and with sales in May exceeding 3.5 billion yuan. For example, the online transaction of Maling increased by 3.6 times year on year, and that of Shanghai Jahwa exceeded 100 million yuan. Since the campaign was launched to encourage consumers to visit well-established Chinese brands, consumer traffic has risen by 50%, and the sales of Yuyuan Garden Malls have increased by 20%. The Shanghai Imported Goods Festival has turned the CIIE exhibits into commodities. A total of 591 promotional activities have been organized with sales of nearly 500 million yuan. For example, sales of Greenland Global Commodity Trade Hub increased by 36% year on year. Forty catering brands participated in the Shanghai Snack Festival, covering 4,700 outlets, with an average sales growth of 15% month on month. Sales of Zhenru Gaoling market increased by 39.5% in two weeks, and consumer flow increased by 29.7%. The Shanghai Information Consumption Festival focused on the fusion and innovation of information consumption with various life elements such as “health care, food, housing, transportation, learning and entertainment,” as the total information consumption exceeded more than 1 billion yuan. Various districts have also launched a series of themed activities, and key companies have generally achieved growth. For example, sales in Pudong, Hongkou and Xuhui have increased by 34.8%, 19.3%, and 18.3% year on year, respectively.
Secondly, the city encouraged discounts to promote consumption during festivals and holidays. Various platforms and merchants have leveraged festivals and holidays to launch discounts and promotions to stimulate consumption. For example, Pinduoduo launched a campaign to offer a 45% discount on car purchase, and has sold more than 600 popular SAIC models. Bailian Group has issued more than 700 million yuan in consumption coupons, achieving sales of 7.45 billion yuan. Meituan Dianping provided 1.2 billion yuan in subsidies, which led to a 48.1% increase in sales of chain restaurants. During the Labor Day holidays, the sales of the key sample companies increased by 15.3% year on year, and the consumer traffic in key business districts increased by 68.5%. On Mother’s Day (May 10), major business districts and enterprises launched thanksgiving-themed promotional activities, and sales of key gold and jewelry companies increased by 22.4% year on year. On May 20 (pronounced “I love you” in Chinese), sales of holiday gifts increased significantly, and sales of cosmetics companies such as Sephora and Lily & Beauty increased by 89.7% and 74.4% month on month, respectively. On June 1, the Children’s Day, consumption featured parent-child and cultural elements. The sales of children’s products in No. 1 Yaohan and Oriental Department Store doubled year on year.
Thirdly, the city leveraged the combination of online and offline channels to promote consumption. Influencer marketing through livestreaming events continued to boom. District leaders, business executives, well-known presenters, and bloggers have joined the ranks of “social influencers”, setting off a buying wave. For example, Bailian launched a 12-hour livestreaming campaign in 12 sectors, with sales on that day rising by 42.9% year on year. Red Star Macalline, Suning, Yongle and Gome carried out “home improvement livestreaming” activities, with online sales doubling. The cloud-based exhibition format has been gaining momentum. Alibaba and CPIT Shanghai jointly created the cloud-based expo, and a number of new cars were unveiled in the 2020 “cloud” event. The online economy has helped poverty alleviation via consumption. E-commerce platforms launched special sections to aid sales of products from five key areas that Shanghai has been supporting. The livestreaming-based marketing campaign has been launched, and more than 10,000 tons of special agricultural and sideline products have been sold.
Fourthly, the city promoted consumption through the integration of commerce, industry, culture and tourism sectors. The city leaders were personally engaged in influencer marketing for “smart manufacturing in Shanghai,” such as intelligent connected cars, 5G robots, and intelligent computed tomography. A large number of high-tech products produced in Shanghai became popular online. The Quality Life Week, part of the shopping festival, gathered 100 well-known enterprises and thousands of social influencers in more than 300 key livestreaming events around the themes of “Beauty of Vitality,” “Beauty of Classics” and “Beauty of Fashion,” and consumer subsidies worth about 3 billion yuan were offered. On May 30, a 10-hour livestreaming relay event was launched among new media platforms to promote consumption in many types of well-known brands, trendy products, cultural and creative products, clothing and cosmetics. The Shanghai Administration of Culture and Tourism has launched a “Five One Hundred” series of products and held themed activities such as the Chenshan Music Festival and the Lavender Festival.
Fifthly, institutional innovation breakthrough promoted consumption. All districts and government departments have earnestly implemented the “12-point directive” to promote consumption and rolled out a series of innovative measures. For example, Shanghai Commission of Commerce, together with Shanghai Administration for Market Regulation, Shanghai Intellectual Property Bureau and Shanghai Customs, has promulgated 11 special measures to support the domestic sales of exported goods; Shanghai Administration of Local Taxation has launched the first shopping center that allows on-site tax refunds; Shanghai Transportation Commission has provided a series of transportation support, like extended operating hours for certain bus routes and subway lines; Shanghai Landscaping and City Appearance Administrative Bureau has extended the length of landscape lighting and expanded the space of open area; The Shanghai Urban Management and Law Enforcement Bureau has also vowed to support the orderly operations of “street vendors.” With a series of policies and services combined to optimize business environment, domestic and foreign retailers have also accelerated their deployment in Shanghai, further injecting confidence to enterprises. A total of 33 new stores debuted in Shanghai, with the first China outlet of US-based fried chicken chain Popeyes, the first global concept store of Maybelline New York, global flagship store of YSL Beauty Worldwide flocking to set foot in Shanghai.
II. Key activities in the next stage
The just-concluded national Two Sessions in Beijing have clearly put forward the strategy of expanding domestic demand, which is positioned as the starting point and foothold of development, and speeding up the construction of a comprehensive system of domestic demand. For the next stage, Shanghai will continue to pull in strength to promote the Double Five Shopping Festival by combining key festivals such as June 18 Shopping Festival, Father’s Day, Dragon Boat Festival, in a bid to keep consumers fervent and attracted.
First, the city will continue to run a number of ongoing key activities. They mainly include Quality Life Week, Internet Youth Life Festival, Shanghai Snack Festival, Global Gourmet Festival, Information Consumption Festival and Imported Goods Festival, which will continue to bring new consumption experience to consumers.
Secondly, the city will hold the first Shanghai Nightlife Festival. The first Shanghai Nightlife Festival is scheduled to be launched on June 6. Some 180 special activities like Shanghai Bar Festival, Late Night Food Hall Festival, Late Night Bookstore Festival, Sleepless Shopping Night and Night Shanghai LIVE Show will be rolled out, revolving around themes like nighttime shopping, dining, touring, entertainment, show and reading. The endeavors are designed to create a new image of an exuberant, Shanghai-style, trendy and international nighttime metropolis. On the kickoff night, a number of heavyweight activities will be held, such as Sinan Night, 158 Square Bar Carnival and Wonderful Night at the Shanghai Museum. A number of limited-time pedestrians and key business districts will extend operating hours, from Anyi Road night fair, the BFC Bund Lane, summertime marketplace on Daxue Road, cultural night fair of Yuyuan Garden, to shopping premises along Nanjing Road, Huaihai Road, Lujiazui, Xujiahui and Wujiaochang. Sixty street artists will perform night shows at 30 locations such as the Bund. A total of 45 museums will publish late opening hours, and 35 bookstores will host night reading sessions. Fifty-five hosts of Shanghai People's Radio Station will join hands with night life ambassadors from each district, showcasing the charm of Night Shanghai through livestreaming on Douyin and short videos to provide citizens with a first-hand guide.
Thirdly, the city will hold the first Shanghai Trendy Lifestyle Festival. The city not only has many world-renowned brands, but is home to a number of indigenous brands and top-tier products embraced by consumers. Therefore, the creation of the Shanghai Trendy Lifestyle Festival is based on integration of the city’s trendy cultural resources. With focuses on “Trendy Product Debuts,” “Stylish Shows,” “Inaugural Entertainment Stores” and “Exuberant Nights,” the festivity will see the participation of 19 local trendy brands and over 30 Chinese merchants, launch nearly 500 new items, host on-site visits to the “debut stores” of some 20 merchants like Nike 001 and Hai’er Smart Home, as well as release the Shanghai Product Debut Economy Activity Index. The Youth League of the CPC Shanghai Committee will also unveil an Internet Youth Life Festival Marketplace under the theme of revitalizing guochao, or the fashion for Chinese brands and culture, and launch a number of sought-after trendy items that are good-looking, high quality and fun, and introduce fine works of young craftsmen.
Fourthly, the city will conduct the mid-year June 18 shopping promotion. Major e-commerce platforms will extend more discounts to set off a new wave of promotional activities. For example, JD will launch more than 200 million products with 50% discount, and distribute 100 million yuan worth of consumer vouchers on key categories like daily commodities and computer, communication, and consumer electronics; coming up with four major scenarios for food consumption — namely grocery shopping for dinner, late-night food hall, breakfast and next-day grocery shopping — Alibaba’s Freshippo will continue to provide consumers with superb online-to-offline shopping experience by launching the June 18 Freshippo Select Items Festival; Pinduoduo will conduct a monthlong promotion throughout June, and is scheduled to offer automobile flash sales with 34 percent off on the night of June 6; by joining hands with thousands of physical retailers, Dada Group will host the June 18 JD Daojia Beautiful Life Festival and themed promotions on Father’s Day and the Dragon Boat Festival; Dingdong Fresh will constantly promote heated items as critical festivals draw near, continuing to dish out subsidies worth hundreds of millions of yuan in the form of coupons and steep discounts; Ymatou will kick off the June 18 Mid-Year Overseas Shopping Extravaganza from June 16 to 21; Xiaohongshu will provides the most favorable offers of the year between June 6 and 18.
Fifthly, districts across the city will respectively carry out a number of special activities. For example, the Pudong New Area will team up with Baidu, promoting famous Pudong chefs and dishes and offering nearly 100 preferential catering options; Huangpu district will organize events like the Xintiandi Design Festival and the Bund Sky Garden Carnival; Jing'an district will organize cross-border e-commerce enterprises to launch the June 18 Mid-Year Shopping Season; Xuhui district will carry out a series of activities such as "Artistic Xujiahui"; Changning district will launch the Restart 2020 Music Party and aim to make livestreaming a routine vehicle to promote consumption; Putuo district will roll out activities such as Bailian Middle Ring Shopping Mall June 6 Carnival and the MTR City Plaza Night Fair; Hongkou district will organize a series of activities featuring Shanghai-based fashion trends and hold a design contest on Chinese cultural and fashion waves; Yangpu district will leverage TV-shopping channel Shanghai Oriental CJ to recommend "Shanghai-rooted, Chinese-style and time-honored” brands to the audience; Baoshan district will organize the Luodian Dragon Boat Culture Festival themed "Charming Dragon Boat, Ode to Dragon Boat Festival"; Minhang district will launch the June 6 Shopping Bonanza on Vehicle Purchase to promote auto sales; Jiading district will hold livestreaming sessions for promoting the district’s special products like cars and grapes; Jinshan district will host a series of events like beer music festival, water curtain lighting show and seafood night market; Songjiang district will hold motorsports events like "Driving on Tianma" and Tianma Road Festival, and launch the British Cultural Night Market in the Thames Town; Qingpu district will organize activities such as one titled "Experiencing the China International Import Expo, visiting the National Convention and Exhibition Center, and Watching Lantern Shows" and the other named "Summertime Night Tour and Global Gourmet Tasting"; Fengxian district will host a car purchase carnival and launch the Dajun Daily Commodities Art Week; Chongming district will continue to provide deals on nine major automobile brands and kick off the “Sharing Farmland” initiative.
With a series of exciting offerings set for June, the Double Five Shopping Festival will carry forward with careful preparations and effective implementation of promotional activities by all parties, as the city has introduced normalized measures on pandemic prevention and control. The event will continue to drive economic growth and further boost domestic consumption.