Sales and Shopper Surge on China’s Singles’ Day
Alibaba Group, China’s e-commerce behemoth, reported “robust growth” in sales and a record number of shoppers during this year’s Singles’ Day event, which lasted several weeks and concluded on Monday at midnight. The company refrained from disclosing total sales revenue but revealed that 45 brands, including Apple, Haier, Midea, and Xiaomi, surpassed 1 billion yuan ($138.62 million) in gross merchandising value (GMV).
JD.com’s Growth and Market Estimates
JD.com, China’s second-largest e-commerce player, reported a significant increase in shoppers during the event, exceeding 20% year-over-year. Data provider Syntun estimated that sales across major e-commerce platforms surged by 26.6% to 1.44 trillion yuan during the Singles’ Day period, which spanned 10 days longer than last year.
Evolution and Expansion of Singles’ Day
Originally a 24-hour online shopping event held on November 11th each year, Singles’ Day has transformed into weeks of promotions across major e-commerce platforms and physical stores. This year’s festival commenced on October 14th, making it the longest edition to date.
Consumer Confidence and Deep Discounts
Expectations for sales growth were tempered this year due to subdued consumer confidence amid an ongoing property crisis and macroeconomic slowdown. Deep discounts have become commonplace on Chinese e-commerce platforms since the COVID-19 pandemic, driven by the rise of discount-focused platforms like Pinduoduo and Douyin.
Additional Discount Incentives and Impact
E-commerce platforms like Alibaba and JD.com provide additional discount vouchers during Singles’ Day, such as cashback for purchases meeting a certain threshold. Analysts speculate that this practice has contributed to higher return rates, as consumers purchase more to unlock discounts and subsequently cancel portions of their orders after the transaction.
Limited Impact of Stimulus Measures
Despite stimulus announcements from China’s central government that boosted stock markets before Singles’ Day, they did not play a significant role in consumer spending during the period, according to Jacob Cooke, CEO of e-commerce consultancy WPIC Marketing + Technologies.
Platform Discretion and Sector Performance
Major Chinese e-commerce platforms, which previously celebrated their Singles’ Day results with celebrity-studded events, have adopted a more low-key approach in recent years. Total GMV figures have not been released since 2022. Notably, large household appliances performed well this year, bolstered by a national trade-in subsidy scheme.
Unexpected Growth in Collectibles and Toys
Collectible toys and hobbies, a niche popular with young consumers in China, experienced unexpected growth during Singles’ Day. Brands like MiHoYo, Pop Mart, Paperpresented, and Jellycat surpassed 100 million yuan in GMV on Alibaba’s platform.
Consumer Anecdote
Shan Yin, a 23-year-old student from Hangzhou, purchased gaming merchandise related to ‘League of Legends’ and collectibles from anime series ‘Noragami’ and ‘Banana Fish,’ totaling 3,200 yuan. She finds these products provide solace from the stresses of her engineering studies and believes cosplay and merchandise consumption help her regulate her emotions.
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