The Ministry of Economic Affairs (MOEA) said yesterday that it will hold a “shopping festival” in the second half of the year to stimulate consumption at a time when the local economy is showing few signs of picking up steam.
The festival, which will rely on steep discounts and promotional activities to get consumers to spend, is expected to create about NT$24 billion (US$800 million) in commercial opportunities, the ministry said.
The initiative is one of several the government is taking to revive the economy, which has remained stubbornly sluggish this year.
On May 24, the Directorate-General of Budget, Accounting and Statistics (DGBAS) cut its forecast for private consumption growth to 1.46 percent for the year, from the 1.86 estimated in February.
The DGBAS also lowered its GDP growth estimate for the year to 2.40 percent from 3.59 percent because of the weaker consumption growth forecast.
During the festival, to be held from next month through September, 25,000 shops nationwide will offer discounts on more than 100,000 products, the ministry said. Stores in the six major metropolitan areas — Taipei, New Taipei City (新北市), Taoyuan, Greater Taichung, Greater Tainan and Greater Kaohsiung — will offer promotions the ministry expects to generate NT$2.18 billion in sales across various sectors.
The campaign hopes to fuel another NT$20 billion in sales by working with the “MIT Smile” project to promote quality made-in-Taiwan products, such as electronics goods and clothes, the ministry said.
Made in Taiwan (MIT) Smile products have been certified by the ministry and given a logo to make them stand out in the market. Promotions focused on the ministry’s “One Town, One Product” program, which promotes the specialties of the country’s many townships, hope to generate another NT$290 million in revenue, the ministry said.
In addition, special discounts will be offered to give a NT$218 million boost to a factory tourism project that transforms old factories into tourist destinations through which visitors can learn about traditional handicrafts and manufacturing techniques.