China's 618 Shopping Festival Sees Slowdown in Consumer Spending Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Source: CNBC
- Weak Consumer Growth: During the 2026 618 shopping festival, China's online sales grew only 4% year-over-year, a significant drop from last year's 15.2%, indicating persistent weakness in household consumption that could hinder overall economic recovery.
- Retail Sales Decline: Retail sales fell 0.6% in May compared to the previous year, marking the first decline since the lifting of pandemic restrictions in 2022, reflecting the fragility and uncertainty of the consumer market.
- Rise of Secondhand Market: Sales of pre-owned electronics surged nearly 80% during the 618 shopping period, highlighting a shift in consumer preference towards lower-cost goods, likely in response to economic pressures.
- Growing AI Demand: Despite overall weak consumption, demand for AI-related hardware surged, and the increased use of AI tools by online shopping platforms has boosted brand profit margins, although the broader economic impact of AI remains uncertain.
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About RERE
ATRenew Inc is a pre-owned consumer electronics transaction and service platform. The Company obtains supply of pre-owned consumer electronics, process devices for resale using proprietary inspection, grading, and pricing technologies in operation centers, and distributes processed devices to a variety of purchasers. The Company’s business primarily consists of three components, AHS Recycle, PJT Marketplace and Paipai Marketplace. AHS Recycle is the Customers to Business (C2B) offering catering to consumers who sell their pre-owned consumer electronics, luxury goods, gold and jewelry, and other goods, or trade pre-owned consumer electronics in exchange for new devices. PJT Marketplace is the Business to Business (B2B) offering providing merchants of pre-owned consumer electronics with a suite of buying and selling solutions. Paipai Marketplace is the Business to Customer (B2C) offering on which consumers can purchase pre-owned products, primarily consumer electronics.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
China's 618 Shopping Festival Sees Slowdown in Consumer Spending Growth
- Weak Consumer Growth: During the 2026 618 shopping festival, China's online sales grew only 4% year-over-year, a significant drop from last year's 15.2%, indicating persistent weakness in household consumption that could hinder overall economic recovery.
- Retail Sales Decline: Retail sales fell 0.6% in May compared to the previous year, marking the first decline since the lifting of pandemic restrictions in 2022, reflecting the fragility and uncertainty of the consumer market.
- Rise of Secondhand Market: Sales of pre-owned electronics surged nearly 80% during the 618 shopping period, highlighting a shift in consumer preference towards lower-cost goods, likely in response to economic pressures.
- Growing AI Demand: Despite overall weak consumption, demand for AI-related hardware surged, and the increased use of AI tools by online shopping platforms has boosted brand profit margins, although the broader economic impact of AI remains uncertain.
See More
ATRenew Reports Strong Q1 2026 Earnings with Accelerated Growth
- Significant Revenue Growth: ATRenew reported total net revenues of RMB 6.16 billion in Q1 2026, reflecting a year-over-year increase of 25% to 27%, primarily driven by robust growth in 1P product revenues, indicating sustained competitive strength in the market.
- Outstanding Refurbished Product Performance: Revenue from compliant refurbished products surged by 76.1%, with the on-demand refurbishment model achieving approximately 180% revenue growth, and March's monthly retail sales of compliant refurbished products exceeding RMB 200 million, marking a successful transformation in this segment.
- Channel Expansion and Service Enhancement: The company saw rapid growth in trade-in orders through the JD channel, with market share expanding year-over-year to about 70%, while scaling its door-to-door service team to 2,248 professionals, which lifted the face-to-face fulfillment ratio to 80%, enhancing customer experience.
- Optimistic Future Outlook: Management anticipates total revenues for Q2 2026 to be between RMB 6,240 million and RMB 6,340 million, reflecting confidence in future growth, while emphasizing ongoing efforts to achieve higher profit margins and market share.
See More
ATRenew Reports 32.4% Revenue Growth in Q1 2026
- Significant Revenue Growth: ATRenew reported total net revenue of RMB 6.16 billion in Q1 2026, marking a 32.4% year-on-year increase, which underscores the strong market demand for its technology-driven recycling and trade-in solutions in China, further solidifying its market leadership.
- Substantial Profit Increase: Adjusted income from operations surged by 70.2% year-on-year to RMB 190.5 million, reflecting the company's success in optimizing operational spending and enhancing management efficiency, thereby boosting profitability.
- Healthy Cash Flow: As of March 31, 2026, the company's cash and cash equivalents stood at RMB 1.718 billion, although down from the end of 2025, it still maintains sufficient liquidity to support future expansions and investments.
- Optimistic Future Outlook: The company expects total revenues for Q2 2026 to be between RMB 6.24 billion and RMB 6.34 billion, representing a year-on-year growth of 25% to 27%, indicating ATRenew's continued confidence and growth potential in the second-hand market.
See More
ATRenew Q1 Earnings Exceed Expectations
- Earnings Beat: ATRenew reported a Q1 non-GAAP EPS of $0.13, exceeding expectations by $0.06, indicating a significant improvement in profitability and enhanced competitive positioning in the market.
- Significant Revenue Growth: The company achieved revenues of $893 million in Q1, a 39.2% year-over-year increase, surpassing market expectations by $33.17 million, reflecting the effectiveness of its business model and strong market demand.
- Increase in Product Transactions: The number of consumer products transacted reached 10.8 million in Q1, up 13.7% from 9.5 million in the same period of 2025, demonstrating increased consumer acceptance and driving sales growth.
- Optimistic Outlook: ATRenew expects total revenues for Q2 2026 to range between RMB 6.24 billion and RMB 6.34 billion, representing a year-over-year increase of 25% to 27%, indicating confidence in future growth and strategic intent to expand retail and international platforms.
See More
ATRenew to Release Q1 2026 Financial Results
- Earnings Release Plan: ATRenew plans to release its unaudited financial results for Q1 2026 before the U.S. market opens on May 19, 2026, demonstrating the company's commitment to transparency and aiming to enhance investor confidence.
- Conference Call Details: The management will hold an earnings conference call at 8:00 A.M. Eastern Time on May 19, 2026, providing an opportunity for participants to directly understand the company's financial status and fostering interaction with investors.
- Global Impact: As a pioneer in technology-driven recycling and trade-in solutions in China, ATRenew is dedicated to reducing the environmental impact of idle goods, promoting circular economy standards, and showcasing its leadership in sustainability.
- Platform Advantages: ATRenew's open platform integrates C2B, B2B, and B2C capabilities, enhancing transaction efficiency and pricing transparency, thereby further solidifying its competitive edge in the market.
See More
ATRenew Announces Q1 2026 Financial Results Release Schedule
- Earnings Release Schedule: ATRenew plans to release its unaudited financial results for Q1 2026 before the U.S. market opens on May 19, 2026, demonstrating the company's commitment to transparency and timely information disclosure.
- Conference Call Details: Management will hold an earnings conference call at 8:00 A.M. Eastern Time on May 19, 2026, providing investors with a direct opportunity to engage with the management team and enhance investor relations.
- Replay Access: The earnings call replay will be available until May 26, 2026, ensuring that investors who cannot participate live can still access critical information, thereby improving information accessibility.
- Company Background: Since its inception in 2011, ATRenew has been dedicated to promoting a circular economy in China through technology-driven recycling and trade-in solutions, highlighting its strategic importance in environmental protection and sustainable development.
See More
China's 618 Shopping Festival Sees Slowdown in Consumer Spending Growth
- Weak Consumer Growth: During the 2026 618 shopping festival, China's online sales grew only 4% year-over-year, a significant drop from last year's 15.2%, indicating persistent weakness in household consumption that could hinder overall economic recovery.
- Retail Sales Decline: Retail sales fell 0.6% in May compared to the previous year, marking the first decline since the lifting of pandemic restrictions in 2022, reflecting the fragility and uncertainty of the consumer market.
- Rise of Secondhand Market: Sales of pre-owned electronics surged nearly 80% during the 618 shopping period, highlighting a shift in consumer preference towards lower-cost goods, likely in response to economic pressures.
- Growing AI Demand: Despite overall weak consumption, demand for AI-related hardware surged, and the increased use of AI tools by online shopping platforms has boosted brand profit margins, although the broader economic impact of AI remains uncertain.
See More
ATRenew Reports Strong Q1 2026 Earnings with Accelerated Growth
- Significant Revenue Growth: ATRenew reported total net revenues of RMB 6.16 billion in Q1 2026, reflecting a year-over-year increase of 25% to 27%, primarily driven by robust growth in 1P product revenues, indicating sustained competitive strength in the market.
- Outstanding Refurbished Product Performance: Revenue from compliant refurbished products surged by 76.1%, with the on-demand refurbishment model achieving approximately 180% revenue growth, and March's monthly retail sales of compliant refurbished products exceeding RMB 200 million, marking a successful transformation in this segment.
- Channel Expansion and Service Enhancement: The company saw rapid growth in trade-in orders through the JD channel, with market share expanding year-over-year to about 70%, while scaling its door-to-door service team to 2,248 professionals, which lifted the face-to-face fulfillment ratio to 80%, enhancing customer experience.
- Optimistic Future Outlook: Management anticipates total revenues for Q2 2026 to be between RMB 6,240 million and RMB 6,340 million, reflecting confidence in future growth, while emphasizing ongoing efforts to achieve higher profit margins and market share.
See More
ATRenew Reports 32.4% Revenue Growth in Q1 2026
- Significant Revenue Growth: ATRenew reported total net revenue of RMB 6.16 billion in Q1 2026, marking a 32.4% year-on-year increase, which underscores the strong market demand for its technology-driven recycling and trade-in solutions in China, further solidifying its market leadership.
- Substantial Profit Increase: Adjusted income from operations surged by 70.2% year-on-year to RMB 190.5 million, reflecting the company's success in optimizing operational spending and enhancing management efficiency, thereby boosting profitability.
- Healthy Cash Flow: As of March 31, 2026, the company's cash and cash equivalents stood at RMB 1.718 billion, although down from the end of 2025, it still maintains sufficient liquidity to support future expansions and investments.
- Optimistic Future Outlook: The company expects total revenues for Q2 2026 to be between RMB 6.24 billion and RMB 6.34 billion, representing a year-on-year growth of 25% to 27%, indicating ATRenew's continued confidence and growth potential in the second-hand market.
See More
ATRenew Q1 Earnings Exceed Expectations
- Earnings Beat: ATRenew reported a Q1 non-GAAP EPS of $0.13, exceeding expectations by $0.06, indicating a significant improvement in profitability and enhanced competitive positioning in the market.
- Significant Revenue Growth: The company achieved revenues of $893 million in Q1, a 39.2% year-over-year increase, surpassing market expectations by $33.17 million, reflecting the effectiveness of its business model and strong market demand.
- Increase in Product Transactions: The number of consumer products transacted reached 10.8 million in Q1, up 13.7% from 9.5 million in the same period of 2025, demonstrating increased consumer acceptance and driving sales growth.
- Optimistic Outlook: ATRenew expects total revenues for Q2 2026 to range between RMB 6.24 billion and RMB 6.34 billion, representing a year-over-year increase of 25% to 27%, indicating confidence in future growth and strategic intent to expand retail and international platforms.
See More
ATRenew to Release Q1 2026 Financial Results
- Earnings Release Plan: ATRenew plans to release its unaudited financial results for Q1 2026 before the U.S. market opens on May 19, 2026, demonstrating the company's commitment to transparency and aiming to enhance investor confidence.
- Conference Call Details: The management will hold an earnings conference call at 8:00 A.M. Eastern Time on May 19, 2026, providing an opportunity for participants to directly understand the company's financial status and fostering interaction with investors.
- Global Impact: As a pioneer in technology-driven recycling and trade-in solutions in China, ATRenew is dedicated to reducing the environmental impact of idle goods, promoting circular economy standards, and showcasing its leadership in sustainability.
- Platform Advantages: ATRenew's open platform integrates C2B, B2B, and B2C capabilities, enhancing transaction efficiency and pricing transparency, thereby further solidifying its competitive edge in the market.
See More
ATRenew Announces Q1 2026 Financial Results Release Schedule
- Earnings Release Schedule: ATRenew plans to release its unaudited financial results for Q1 2026 before the U.S. market opens on May 19, 2026, demonstrating the company's commitment to transparency and timely information disclosure.
- Conference Call Details: Management will hold an earnings conference call at 8:00 A.M. Eastern Time on May 19, 2026, providing investors with a direct opportunity to engage with the management team and enhance investor relations.
- Replay Access: The earnings call replay will be available until May 26, 2026, ensuring that investors who cannot participate live can still access critical information, thereby improving information accessibility.
- Company Background: Since its inception in 2011, ATRenew has been dedicated to promoting a circular economy in China through technology-driven recycling and trade-in solutions, highlighting its strategic importance in environmental protection and sustainable development.
See More
