Beixiazhu, once a bustling center for live-streaming e-commerce, is now grappling with a significant decline due to intense competition and price wars. The e-commerce boom in this region began around 2019, fueled by platforms like Kuaishou and Douyin, which enabled merchants to reach vast audiences through live-streaming sales. However, the term 'juan' has emerged to describe the cutthroat competition that has led to unsustainable business practices among merchants [386a0806].
Despite the challenges faced by Beixiazhu, the Yiwu International Trade Market, recognized as the world's largest wholesale hub, reported a 16% increase in export volume in 2023. This indicates that while some areas of e-commerce are struggling, others continue to thrive [386a0806]. In contrast, major players like Alibaba's Taobao and Tmall Group have only seen a modest revenue growth of 0.85% in the first half of 2024, highlighting the competitive pressures in the market [386a0806].
PDD Holdings, on the other hand, reported a remarkable 183% profit increase, showcasing a different trajectory amidst the overall market challenges. Meanwhile, China's retail sales growth has slowed, rising just 2.1% year-on-year in August 2024, prompting concerns about the broader economic climate [386a0806].
In response to these economic pressures, the Chinese government announced a stimulus package ahead of the October 1 national holiday, aimed at boosting consumer spending and revitalizing the economy [386a0806]. As Beixiazhu navigates this tumultuous landscape, the future of its e-commerce sector remains uncertain, reflecting the broader trends affecting China's retail environment.