consumer spending

China’s consumer “trade-in” subsidies, crucial for boosting domestic demand, are experiencing temporary pauses in several regions during the 618 shopping festival. Many cities are shifting from broad subsidies to a “grab-the-coupon” system or have suspended them entirely. This slowdown, potentially linked to dwindling funds, impacts appliance and digital device purchases. While retailer promotions continue, the future of these subsidies is uncertain, yet policy is anticipated to shift to a quota system to better moderate fund usage.

Alibaba’s Tmall is launching the second phase of its 618 sales, focusing on its 88VIP members. Major changes include a simplified 10% discount on all purchases, irrespective of order value. Members receive a bundle of coupons for significant savings. The promotion aims for a frictionless shopping experience, offering a cumulative discount of approximately 23.5% with other existing offers.

Mianyang, Sichuan province, has launched a pilot 4.5-day workweek under its *2025 Consumer Revitalization Action Plan*, introducing a “Friday afternoon + weekend” model to boost tourism and domestic spending. The voluntary policy aims to alleviate overcrowding during peak holidays by dispersing travel demand, with analysts noting its alignment with national efforts to stimulate consumption. Preliminary estimates suggest an 8-12% rise in regional tourism revenue, benefiting hospitality sectors. While differing from Western compressed workweek models focused on productivity, the initiative’s success could inspire similar trials across China. Social media反响热烈 show strong public support for extended leisure time and reduced travel congestion.