Once hailed as the world’s largest online shopping festival, China’s Singles’ Day, celebrated annually on November 11, has lost much of its previous luster. Once marked by a frenzy of consumerism and staggering sales growth, this year’s event has been overshadowed by the cloud of China’s slowing economy and shifting consumer sentiment. E-commerce giants, traditionally at the forefront of the festival, are increasingly looking abroad for new growth, as domestic shoppers show hesitancy to splurge.
Singles’ Day, known by its numerical date 11.11, began as a modest celebration for singles, but has transformed into a multi-billion-dollar shopping extravaganza since Alibaba’s involvement in 2009. Initially just a one-day event, it has become a prolonged festival with pre-sales beginning weeks in advance to boost sales. Major platforms like JD.com and Pinduoduo quickly jumped on board, turning it into a national event that also serves as a barometer of consumer confidence.
Alibaba and other platforms heavily advertised steep discounts, incentivizing consumers to buy everything from electronics to luxury goods. In the pre-pandemic years, sales volumes grew annually at double-digit rates. However, the last few years have seen a deceleration in growth and an evolution in consumer behavior, driven by economic pressures and a more skeptical attitude towards discount strategies.
China’s economic outlook has dampened enthusiasm for Singles’ Day. The nation is grappling with issues such as deflation, a struggling real estate sector, and stagnant consumer spending. These factors have reshaped consumers’ approach to the once-beloved shopping spree.
Wang Haihua, a Beijing-based fitness center owner, said she spent only a few hundred yuan on basic items this year. Reflecting on the years of flashy discount promises, she shared, “They’re all tricks, and we’ve seen through it over the years.” Like many, Wang has grown skeptical of what appear to be inflated discounts, noting that prices on Singles’ Day are not necessarily lower than regular prices.
Zhang Jiewei, a barber shop owner in Xi’an, echoed her sentiment. Having once bought big-ticket items like mobile phones during Singles’ Day, he has since pulled back due to the economic impact of the pandemic. “I used to buy a lot two or three years ago,” Zhang said. “I stopped doing that after the pandemic because of less income. I am not going to buy anything this year.”
Beyond a reluctance to spend, Chinese consumers are growing wary of deceptive discount tactics. Many merchants, facing the pressure of higher platform advertising fees, have adopted practices like inflating original prices only to reduce them for apparent discounts. This has disillusioned buyers, contributing to lower sales on Singles’ Day.
“The platform promotions seem enticing, but it’s largely psychological. We no longer trust them,” said Zhang. Many consumers have observed that prices are often manipulated ahead of Singles’ Day, leading to skepticism about the genuine value of the discounts. Shaun Rein, founder and managing director of China Market Research Group in Shanghai, explained that with the economy remaining sluggish since late 2022, discounts have become common throughout the year, and “11.11 is not going to bring in more discounts than the month before.”
Merchants, too, have found it increasingly challenging to turn a profit on Singles’ Day. The high costs of participating in the festival — from advertising fees to platform commissions — have driven some small and medium-sized businesses to reconsider the value of joining. Zhao Gao, who runs a garment factory in Zhejiang province, shared that after covering advertising and other expenses, he barely breaks even.
“The platforms have so many rules for promotions, and customers have become more skeptical,” Zhao said. As a result, he has chosen to opt out of Singles’ Day promotions altogether, preferring to focus on year-round sales without the added costs.
Even those who continue to participate find diminishing returns. Du Baonian, who manages a mutton-processing company in Inner Mongolia, reported a 15% decline in sales over the past year as consumers shift to cheaper alternatives or cut back on discretionary purchases. While Du still advertises during Singles’ Day, he finds that sluggish consumer spending makes it hard to see a significant return on his investment. “Advertisement on the platform can help us to maintain our leading sales position,” he explained, though he is considering branching out to more platforms to reach new customers.
With a cooling domestic market, e-commerce giants like Alibaba and JD.com have begun looking abroad to maintain growth. Alibaba has invested heavily in international logistics, offering promotions such as global free shipping to attract foreign buyers and encourage Chinese merchants to sell internationally. In recent reports, Alibaba highlighted its success in international markets, noting that some 70,000 merchants saw doubled sales with the help of international shipping incentives. Hong Kong and Singapore, in particular, saw an influx of new customers.
JD.com and Alibaba are betting on overseas markets to compensate for sluggish domestic growth, tailoring offerings and promotions for diverse international audiences. By expanding globally, these platforms hope to replicate the success of Singles’ Day, albeit in a different market environment where economic conditions and consumer confidence may be more favorable.
While Beijing has introduced various stimulus measures to boost domestic consumption, many experts believe these efforts have not been enough to revive consumer confidence fully. Consumers are prioritizing savings over spending, particularly for big-ticket items, given uncertainties about the future economy.
“People are not interested in spending and are cutting back on big-ticket items,” Rein commented, noting that platforms may only see low single-digit growth in sales this year. Unlike pre-pandemic years when growth rates for Singles’ Day sales were in the double digits, recent data shows a stark contrast. Syntun, a data analytics provider, estimated that last year’s gross merchandising volume (GMV) sales across major e-commerce platforms grew by a mere 2% to approximately 1.14 trillion yuan ($156.4 billion), reflecting the challenges the industry now faces.
Interestingly, certain product categories continue to perform well as consumers adjust their spending habits to prioritize essential or perceived higher-value items. For instance, categories like sportswear and fitness apparel have shown resilience. Rein explained that consumers are now “trading down a Gucci bag for Lululemon sportswear,” demonstrating a shift in spending priorities toward mid-range items that combine quality with affordability.
This trend highlights a reorientation in consumer preferences — while luxury and non-essential items are seeing a decline, products that align with health, wellness, or everyday value have retained some momentum. However, this shift is not enough to offset the overall sales downturn experienced by major platforms.
This year’s Singles’ Day is a mirror of China’s larger economic landscape, revealing a society increasingly mindful of financial security amidst economic slowdown. Consumers, who once flocked to purchase the latest gadgets or luxury items, are now reconsidering their buying habits. The cautious approach to spending, even during one of the biggest shopping events of the year, underlines a shifting mindset — one that prioritizes financial prudence over instant gratification.
The evolution of Singles’ Day is emblematic of a larger trend where the explosive growth of e-commerce and consumer spending, once taken for granted in China’s rapid economic ascent, now faces structural and psychological challenges. With domestic growth slowing, both merchants and platforms are adapting to new realities, finding that tapping into overseas markets may be the next best bet for maintaining momentum.
