China’s most anticipated shopping event, Singles’ Day, has commenced earlier than ever this year, with retailers launching sales campaigns in mid-October. The way most people would normally celebrate this event would be on November 11. It’s a little like Amazon’s Prime Day and Black Friday sales events in other countries. Chinese e-commerce titan Alibaba first conceived of Singles’ Day as an online shopping festival. Since then, it has become one of the biggest global e-commerce days, with millions of average consumers participating.
Recently, this one-day sale window has stretched dramatically. What started as clearance sale day has turned into a month-long shopping holiday! Prepare to save big all month long! Retailers are known to welcome the occasion with dramatic opening ceremonies starring internationally renowned popstars. This year, the merrymaking gets started just after China’s Golden Week holiday. As we all know, this holiday is celebrated as one of the busiest times in consumer spending.
As thrilling as the event might be, the dark backdrop of impending economic calamity is impossible to ignore. The Chinese government, meanwhile, has poured billions into encouraging infrastructure spending. From doubling down on family subsidies, to raising their workers’ wages, to providing discounts on consumer goods – they’re changing the game. These measures have yielded limited success. The growth in retail sales from Singles’ Day this year is missing the mark. Consumers are keeping up their guard against excess spending, a habit that took hold during the Covid-19 pandemic and has persisted ever since.
While the COVID crisis has passed, China continues to struggle economically. Climbing youth unemployment, a lengthy property crash, high local government debt, and a still-escalating trade war with the United States have combined to make consumers wary of opening their wallets. Many are reducing expenditure on discretionary goods, making the successful outcome of Singles’ Day 2023 all the more complex.
Retailers throughout the country are watching closely, and they know what’s at risk. This event helps propel billions of dollars in economic activity during the last three months of the year. No less important, it is a leading indicator of consumer confidence, which is especially important in today’s difficult economic climate. Discounts are deep, as the big box stores and online channels continue to cut each other’s throats as they desperately seek sales.
Sales were slated to begin in mid-October. Retailers are hoping those early promotions will stimulate the pent-up demand from consumers who have been holding back on their spending. With a market that’s high on speculation, it’s still unclear if any of these strategies will be successful.