E-commerce firms uphold consumption recovery amid policy support
Published: May 15, 2024 09:26 PM Photo: VCG Photo: VCG

China's major e-commerce platforms and tech companies have actively responded to the nation's ongoing consumption promotion activities, and have vowed to implement multiple technology-empowered measures to participate.

The momentum is driven by an action plan released by China's State Council, the cabinet, on March 13, to promote the large-scale renewal of equipment and trade-ins of consumer goods, a measure to activate the nation's consumption market.

Analysts said that the release of the plan is a vital opportunity to meet the demand of companies and consumers, and it will further ensure the nation's latest round of consumption-centered economic growth. 

"We estimate that over 20 million users will participate in our trade-in program for home appliances and furniture in 2024, recycling more than 30 million old items," Lei Sun, head of the service department at e-commerce enterprise's home appliances and life business unit, told the Global Times on Wednesday. and its cooperation partners have vowed to actively support the action plan to promote the large-scale renewal of equipment and trade-ins of consumer goods, backed by an investment of 6.5 billion yuan ($899.9 million) in 2024.

Chinese technology giant Alibaba Group announced its first-quarter results on Tuesday. Revenue reached 221.87 billion yuan, up 7 percent year-on-year. Revenue from the group's e-commerce arm Taobao and Tmall Group grew 4 percent year-on-year to 93.22 billion yuan, 

Joe Tsai, chairman of the Alibaba Group, said during the earnings call that consumers are starting to show a willingness to spend, indicating their confidence in the future.

Cutting-edge technology, such as artificial intelligence (AI), is also being utilized to empower businesses. 

Tencent announced its first-quarter results on Tuesday, with revenue reaching 159.5 billion yuan, up 6 percent year-on-year. Revenue from online advertising hit 26.5 billion yuan, a 26 percent increase, attributed to increased engagement and ongoing improvements in AI-powered advertising infrastructure.

E-commerce platforms are one of China's most important sales channels, and the action plan will lead to a multi-win outcome for enterprises, consumers and the general economy, Zhang Yi, CEO of iiMedia Research Institute, told the Global Times on Wednesday. 

"For instance, the home appliance sector, which represents the majority of the trade-in policy, covers a long industrial chain including raw materials, research and development, manufacturing, logistics and sales. Thus, the action plan will form a sustainable cycle, connecting multiple phases of the national economy," Zhang said.