The Singles' Day shopping festival, once the most eagerly awaited event on the e-commerce calendar, has shown signs of losing its luster as China battles economic challenges. Originally launched by Alibaba on November 11, 2009, the festival began as a one-day online shopping spree aimed at singles, promising deep discounts to entice consumers. Over the years, it morphed not only to encompass other platforms, like JD.com and Pinduoduo, but also extended its tentacles beyond the digital space, with brick-and-mortar stores joining the fray through promotional banners and campaigns.
This year’s festival, which kicked off weeks prior to November 11, showcased consumers' tightening grips on their wallets amid sluggish economic conditions. Reports indicate shoppers have become more skeptical of the discounts being offered. Wang Haihua, who operates a fitness center in Beijing, remarked, "I have only spent a few hundred yuan on daily necessities," pointing to the disillusionment many feel toward promotional hype. She expressed concerns over how prices on e-commerce platforms haven’t actually shifted significantly, declaring, "They’re all tricks and we’ve seen through it over the years."
Zhang Jiewei, running a barber shop in Xi’an, echoed similar sentiments. His earlier enthusiasm for Singles' Day purchases has waned, primarily due to perceived price manipulations and financial constraints brought on by the pandemic. “I used to buy a lot two or three years ago. I even purchased a mobile phone during Singles’ Day. But now, due to lower income, I’m not going to buy anything this year,” he stated.
The struggling Chinese economy has many speculating whether this year’s Singles' Day would mark the end of its glory days. For over the past year, consumers have adopted frugal spending habits, and experts are finding it increasingly difficult to discern any real revival signs. Shaun Rein, founder of the China Market Research Group, commented, “People are not interested in spending and are cutting back on big-ticket items.” He noted how prolonged economic weaknesses have led to discounts being constant throughout the year rather than concentrated on Sales Day, diminishing the excitement of the event.
Meanwhile, global economic influences have compelled e-commerce giants such as Alibaba and JD.com to seek expansion opportunities abroad to capture consumer interest outside China. Both firms have implemented strategies like global free shipping and broader market access for their merchants, indicating they are responding to domestic challenges by turning to international markets.
Despite the economic downturn, Jacob Cooke, CEO of e-commerce consultancy WPIC Marketing + Technologies, noted there remain some bright spots. He pointed out categories like sportswear and outdoor gear have seen positive sales. “There’s a clear shift toward experiences, hobbies, and health,” he shared, emphasizing how consumers seem to be trading upscale goods like Gucci bags for practical items from brands like Lululemon.
Interestingly, not all are retreating from the Singles' Day promotions. Du Baonian, who runs a food business processing mutton, shared his experiences with revenue drop-offs. While recognizing his overall sales dwindled by 15% compared to last year, he persists with the promotions, justifying it as being necessary to maintain his competitive edge. “We are seeing shrinking revenue, but advertisement on the platform can help us maintain our leading sales position,” he stated, hinting at the enduring allure the Singles’ Day brand holds even amid uncertainty.
On the other side, JD.com proudly announced impressive growth figures during this year’s Shopping Festival. Over 30,000 medium and small-sized merchants reported increased transaction volumes, some even achieving rates much greater than anticipated. They reported over 17,000 brands on their platform with transaction-volume during Singles’ Day up by five times year-on-year, signaling notable success against the backdrop of larger economic challenges. This demonstrates the resilience of some sectors and consumers opting for quality, which is consistent with changing preferences.
Despite the significant performance discrepancies, both Alibaba and JD.com opted against disclosing overall gross merchandise value (GMV) achieved compared to previous years. This trend of withholding data commenced last year amid increasing economic pressures and challenges facing the dominant players. They have shifted from previously posting double-digit growth rates to recognizing low single-digit increases.
While experts and merchants regard this year’s Singles’ Day as not yielding the same fervor as those of prior years, there still appears to be room for adaptation as e-commerce expands globally, and consumer behaviors evolve. Some companies, like Zhao Gao from Zhejiang's garment factory, have retrenched due to rising advertising costs versus declining sales. Expressing his disillusionment with the perceived value of participation, he concluded, “I no longer participate in Singles’ Day promotions.”
With varying experiences highlighted this year, it seems the festival is undergoing transformation, adapting to the new realities confronting both merchants and consumers. While traditional numbers may not mirror the past, the Singles' Day shopping festival persists as both businesses and buyers continue to navigate and find their footing amid turbulent financial landscapes.