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China: China's mid-year shopping spree rings up stronger sales with gov't subsidies
[Voiceover] Launched by an e-commerce platform in 2008, the "618" shopping festival has grown into one of China's biggest annual sales events. And this year, it's getting a major boost. [Stand up] Zhou Yixin, Reporter: "This year, China's "618" shopping festival joins forces with nationwide government subsidies, offering even bigger discounts, and this shopping craze is quietly shaping new consumer habits." [Voiceover] Sales data shows a clear upgrade in consumer preferences. More shoppers are now choosing smarter, greener, and better-designed home appliances. 【Sound_bite】 Consumer: "First, I look at functionality. Then it's about value for money. Ideally, the product also includes extra smart features. And now it feels like the best time to buy." [Soundbite] Consumer: "I was looking at a refrigerator. With subsidies from the brand and the platform, the total discount came to 4,500 yuan. It is really appealing." [Voiceover] Government trade-in subsidies now cover a wider range of products – from home appliances to electronics, with price cuts of 15 to 20 percent. On top of that, platforms are offering their own incentives. At Suning, combined offers from the government, the platform, and manufacturers bring total discounts to as much as 50 percent. [Soundbite] Wang Sun, Store Manager, Suning Max store in Beijing: "With all the deals combined, customers are spending roughly the same but getting higher-end products. We saw both higher volumes and better-quality sales. For example, the average selling price of air conditioners has gone up, showing that people are choosing more premium models." [Voiceover] What used to be simple replacement purchases is now shifting to quality upgrades. More high-end models are topping the bestseller lists, shifting the pricing structure and lifting the overall market. [Restrictions: No access Chinese mainland]
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