Women walk out from a fashion store near a display promoting China’s popular e-commerce sales ‘Singles’ Day’ global online shopping festival at a shopping mall in Beijing, on Nov 4, 2024. (AP Photo/Andy Wong)
Singles’ Day, China’s massive shopping festival held every November 11, has lost some of its appeal this year as businesses and consumers struggle with an economic downturn. The event, originally launched by e-commerce giant Alibaba in 2009, once symbolized China’s consumer confidence but now reflects a more cautious approach to spending.
Initially a one-day sale featuring steep discounts, the festival has evolved into a weeks-long shopping season involving platforms like JD.com and Pinduoduo, as well as physical stores. Despite extended campaigns and aggressive marketing, many consumers remain hesitant to splurge. Economic challenges like a real estate crisis and deflation have forced people to cut back on spending, even during what was once the biggest shopping day of the year.
Some shoppers say Singles’ Day deals aren’t as enticing as they used to be. Wang Haihua, a Beijing gym owner, shared that she only spent a few hundred yuan this year on essentials, suspecting that discounts often disguise inflated base prices. Similarly, Zhang Jiewei, a barber from Xi’an, stopped participating after realizing that many promotions offer little real value. "I used to buy more during Singles’ Day, but my income dropped after the pandemic," he said.
With domestic spending slowing, e-commerce platforms like Alibaba have shifted focus to international markets, offering perks like global free shipping and tools for cross-border selling. According to Alibaba, this strategy has doubled sales for tens of thousands of merchants in regions like Singapore and Hong Kong.
However, analysts remain skeptical about the festival’s future growth. Shaun Rein, managing director of China Market Research Group, noted that a year-round slowdown in consumer spending has made heavy discounts commonplace, diluting Singles’ Day’s appeal. "People are avoiding big purchases and sticking to necessities," he explained.
Despite the overall slump, certain categories like sportswear, outdoor gear, and personal care products have performed well. Jacob Cooke, CEO of WPIC Marketing + Technologies, attributed this trend to shifting consumer priorities toward health and hobbies. "Consumers are opting for premium goods but focusing on experiences and wellness," he said, citing strong sales in brands like Lululemon.
In recent years, platforms such as Alibaba and JD.com have stopped disclosing total sales figures for the festival. Analysts estimate that last year’s sales across major platforms grew by just 2%, a stark contrast to the double-digit growth seen in previous years.
Merchants, too, are feeling the pinch. Zhao Gao, who runs a garment factory in Zhejiang, said the rising costs of advertising on e-commerce platforms often eat into profits, leaving little incentive to join Singles’ Day campaigns. Another merchant, Du Baonian, who processes mutton in Inner Mongolia, reported a 15% drop in sales compared to last year. Although he still participates in promotions, Du noted that the benefits are diminishing.
As Singles’ Day grapples with a shifting economic landscape, it’s clear that both consumers and businesses are rethinking their approach to what was once a shopping frenzy. Whether the festival can reclaim its former glory depends on broader economic recovery and innovative strategies from e-commerce platforms.
