Once a pinnacle of consumer enthusiasm and spending in China, the Singles’ Day shopping festival has faced a notable decline in appeal this year. Launched by Alibaba in 2009 and known for its massive discounts and marketing campaigns, Singles’ Day—also called “Double 11”—has grown to encompass other major e-commerce platforms like JD.com and Pinduoduo. Traditionally seen as a barometer of Chinese consumer sentiment, this year’s festival highlighted a shift in shopper behavior as economic conditions remained challenging.
A Cooling Domestic Market
China’s domestic economic struggles, driven by a real estate downturn and deflationary pressures, have had a profound impact on consumer spending habits. Shoppers who once eagerly anticipated the annual shopping event are now holding back. This reluctance to splurge is echoed in the words of Wang Haihua, a fitness center owner in Beijing: “I have only spent a few hundred yuan on daily necessities. They’re all tricks and we’ve seen through it over the years.” Wang’s skepticism reflects the sentiment of many consumers who feel promotions are often inflated by pre-sale price hikes that create an illusion of discounts.
Zhang Jiewei, who runs a barber shop in Xi’an, shared similar experiences. “I used to buy a lot two or three years ago…but after the pandemic, I stopped because of lower income,” he said, adding that he chose not to participate in this year’s sales.
E-Commerce Platforms Look Abroad
With the slowing domestic market, major e-commerce companies have begun shifting their focus to overseas consumers. To attract international buyers, platforms like Alibaba introduced promotions such as global free shipping, which has proven effective in boosting sales. According to Alibaba, around 70,000 merchants experienced doubled sales thanks to these incentives. Markets in Singapore and Hong Kong saw new customers double as well, showcasing the impact of this pivot to foreign markets.
Expert Opinions on Consumer Trends
Experts like Shaun Rein, managing director of China Market Research Group, noted the limited impact of recent stimulus measures on consumer confidence. “People are not interested in spending and are cutting back on big-ticket items,” Rein said. He pointed out that constant year-round discounts have diminished the significance of Singles’ Day deals, leading to low growth expectations.
Jacob Cooke, CEO of WPIC Marketing + Technologies, highlighted that while there is a downturn in luxury spending, certain categories still performed well. “There’s a clear shift in consumer priorities towards experiences, hobbies, and health,” Cooke said, noting strong sales in mother-baby products, personal care, toys, and sports equipment. Despite economic challenges, some consumers continue to show a preference for premium brands, supported by platform subsidies and loyalty programs like Alibaba’s 88VIP.
Merchants Face Costly Challenges
For many merchants, participating in Singles’ Day promotions no longer guarantees profitability. Zhao Gao, who owns a garment factory in Zhejiang province, expressed frustration with the high advertising costs and complex platform rules. “The platforms have so many rules for promotions and customers have become more skeptical,” Zhao said, noting that breaking even has become the norm rather than the exception.
Du Baonian, who runs a mutton processing business in Inner Mongolia, has also seen a decline in sales, down 15% compared to previous years. While he still participates in Singles’ Day campaigns, he acknowledges that the costs often outweigh the returns. “We are seeing shrinking revenue, but advertisement on the platform can help us maintain our leading sales position,” Du said, hinting at plans to broaden his advertising strategy to include more platforms in pursuit of wider reach.
Declining Growth and Changing Strategies
In past years, e-commerce platforms boasted double-digit growth figures for Singles’ Day, but this trend has dwindled. Platforms like JD.com and Alibaba stopped releasing total sales figures after 2022, signaling a slowdown in the festival’s growth. Data from Syntun, a market research firm, estimated last year’s gross merchandise volume (GMV) across major e-commerce sites grew by just 2% to 1.14 trillion yuan ($156.4 billion), a stark contrast to pre-pandemic double-digit growth rates.
This year’s Singles’ Day showcased a shift in both consumer behavior and e-commerce strategy. With domestic spending tight and trust in promotions waning, businesses have turned their focus outward, seeking growth in overseas markets. Although some categories, such as sports and personal care, continue to attract buyers, overall sales are sluggish, reflecting the economic challenges that consumers and businesses alike must navigate. The once-celebrated shopping bonanza may still hold significance, but it has become a more nuanced indicator of market sentiment in a changing economic landscape.