Author: Lao Guoling Outstanding results of the Double Five Shopping Festival were unveiled yesterday, vividly showing the key spirits of “a city built by the people and for the people.” In the past two months, Shanghai, which has been striving to build itself into an international consumer hub, has experienced a “huge test”. This was a special “exam” for the city to test its ability in promoting consumption and stimulating the economy in the post-pandemic period. However, the city took an unusual approach to taking the test. Instead of using the usual “issuance of consumer vouchers”, it has created a new way by holding the Double Five Shopping Festival, as its IP, with the efforts of the whole city to bolster consumption. The results were satisfying. Back on June 6, when the Double Five Shopping Festival came into the second round as June 6 Nightlife Festival started, the host of Shanghai TV program “Meeting at Night” asked me if sales would likely hit new highs in June after the Shanghai Commission of Commerce said that offline sales hit 100 billion yuan and online sales reached 144.4 billion yuan in May. I remember my answer at the time was that “for a newly created festival, it does not necessarily need a perfect number.” But today’s number is perfect. Sales of the two months totaled 539.7 billion yuan, including 244.4 billion yuan in May and 295.3 billion yuan in June. On the basis of the already high level, sales increased by 20.8% month on month. This way of taking the test was completely new. The most prominent aspect in this “exam” is the innovative way it is addressed. First, online and offline channels are no longer “loosely connected,” but really deeply integrated. Online channels drive traffic to offline channels, and vice versa. The online and offline economies are integrated and embrace each other as very good “partners”. Meanwhile, empowerment by platforms and coordinated promotion have also accelerated digital transformation of commercial enterprises. In addition, livestreaming events led a new trend of consumption. Commercial, manufacturing, culture and tourism sectors collaborated in marketing, while cloud-based platforms helped link internal and external trade channels … New models and new attempts were constantly emerging. People are satisfied with the results of this exam. The Double Five Shopping Festival saw companies across the city take unprecedented moves to offer discounts to bring benefits to people. Take automobiles as an example. On the evening of May 4, the opening night of the shopping festival, 55 cars with a 45% discount on an e-commerce platform were instantly ordered, and the supply had to be increased later. At the same time, government departments also introduced policies to promote automobile consumption, further boosting sales. With the policies and promotional events, people get real benefits. On top of that, global debuts of new products, fashionable time-honored brands, local chic products, and global foods and products for locals were also well recognized and praised by local citizens. More importantly, the effective recovery in market demand has supported companies in their production and operation, especially small and medium-sized enterprises, thus ensuring stable operation of market players and effectively benefiting enterprises and promoting employment. Such a shopping festival is worth being held every year. As the nation’s first large-scale comprehensive consumer festival, the first Double Five Shopping Festival was held to, first of all, boost confidence, drive consumer traffic and business sentiment, and then restart the virtuous cycle of production, circulation and consumption. On the basis of meeting pent-up consumer demand, it also helped release consumption potential, especially allowing the “machinery” to be “lubricated” by market orders. Market prosperity, economic vitality, and quality of life are the symbols of a city. The two-month “exam period” is filled with various activities. The Double Five Shopping Festival became a training ground to enhance the city’s comprehensive governance capabilities. The two-month “exam period” has further strengthened the synergies between Shanghai’s “Four Brands”, which not only allows people living in this city to have better “Shanghai Shopping” experience, but also further improves the scope of “Shanghai Services”, shows the image of “Shanghai Manufacturing” and displays the identity of “Shanghai Culture”. This kind of activity is worth doing every year, and such an IP is also a logo that people in this city should have. Author: Lao Guoling, Professor and Director of E-commerce Research Center, Shanghai University of Finance and Economics