Investing.com - Jefferies reported weaker demand for China white goods in April and early May compared to the first quarter of 2026, with air conditioners leading the decline.

The firm's channel checks indicated that white goods retail sales declined by double-digit percentage points year-over-year during the May 1 to May 5 period. This early May period, known as the "golden week campaign," traditionally serves as the prelude to the summer peak season.

Jefferies noted that retail prices increased year-to-date by an estimated 3% to 5% on a like-for-like basis. However, the firm suggested these price increases may not fully offset margin pressure on brands due to deteriorating product mix and higher incentive payments to distributors.

The weak air conditioner demand during the early May period may indicate growing price competition risks in the upcoming 618 promotion, according to Jefferies. Brands typically set their summer pricing strategy based on early May performance, particularly for air conditioners.

Consumer subsidies appeared flat year-over-year. In the 2026 618 promotion, JD.com (NASDAQ: JD) is providing concentrated subsidies on Haier and Midea branded products, while subsidies from brands and governments remained unchanged from the prior year.