China's Singles Day, a holiday initially created to celebrate singlehood, has evolved into a weeks-long online shopping festival that culminates on November 11. The event, which originated at China's Nanjing University in 1993, has grown into a significant retail period since its inception. Last year, the total value of goods sold during the shopping festival amounted to 1.15 trillion yuan ($157.97 billion), dwarfing the $35.3 billion U.S. shoppers spent during Cyber Week.
Major brands and products purchased during this event include essentials, supplements, vitamins, and pet-care products. Several American companies like Nike, Lululemon, Estee Lauder, and Procter & Gamble have a significant presence on the Tmall marketplace and stand to benefit from the event. However, this year's event has seen a shift in consumer sentiment.
China's e-commerce giants, including Alibaba, JD.com, and Pinduoduo, have engaged in a price war to attract consumers during the Singles Day festival, amid a sluggish economy and cautious spending sentiment. Despite the significant discounts and catchy slogans to promote their sales, analysts expect a muted sale period due to economic conditions. Chinese consumers are grappling with challenges such as high unemployment rates, stagnant wage growth, and a housing market crisis, leading to reduced spending.
Some consumers have claimed that this year's deals were not as good as in the past, and that some websites had raised prices before cutting them for the holiday. Jacob Cooke, co-founder and CEO of Beijing-based e-commerce consulting firm WPIC Marketing + Technologies, suggested that the proliferation of livestreaming and secondary shopping festivals has reduced the relative attraction of Singles Day. The slowing sales come as China's economy slows and the country slipped back into deflation in October.