Prolonging shopping festivals like China's 618 mid-year festival, which ended Wednesday, have weakened the impact of the event, and more Chinese consumers have become more conscious with their spending, Reuters reported Thursday, citing analysts.

Chinese shoppers have also lost the appetite to splurge during the 618 festival amid employment stability and lower wages, Reuters reported.

Discounts also play a lesser role for budget-conscious shoppers, who seek cheaper alternatives instead of relying on discounts, the report said, citing Rachel Lee, general manager of market research firm Worldpanel China.

Despite that, retail sales in May increased 6.4%, and analysts attribute the rise to the early start of the 618 promotion. JD.com (HKG:9618) and Alibaba (HKG:9988) started as early as May 13, Reuters reported.

The increase is also attributable to government trade-in subsidies, but analysts from HSBC (HKG:0005_ have also warned that a pause in subsidies across some cities in China could drag overall consumption in June, the report said.

JD.com's number of users ordering during the event more than doubled, while Alibaba said 453 brands topped 100 million yuan in gross merchandise volume, and more well-known brands surpassed 1 billion yuan in GMV during the promotion, the report said.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)