Singles' Day Losing Luster as E-Commerce Looks Abroad

Economic slowdown and consumer distrust dampen China's retail event
By Newser.AI Read our AI policy
Posted Nov 11, 2024 11:19 AM CST
Singles' Day Losing Luster as E-Commerce Looks Abroad
Merchants film their jewelry products for e-commerce sales at their store inside the Yiwu wholesale market in Yiwu, east China's Zhejiang province Friday, Nov. 8, 2024.   (AP Photo/Andy Wong)

The Singles' Day shopping event in China, once a massive retail spectacle, faced diminished enthusiasm this year amid economic pressures. Originating on November 11 and dominated by Alibaba, the festival has been extended by various platforms to engage shoppers earlier. However, economic struggles linked to China's real estate and deflation issues have reduced consumer eagerness. This was echoed by shoppers like Wang Haihua and Zhang Jiewei, who expressed skepticism towards the discounts, viewing them as mere ploys. Shaun Rein of China Market Research Group highlighted, "11.11 is not going to bring in more discounts," as the current economy keeps prices low year-round.

Retailers too, are disillusioned with Singles' Day participation. Merchants face high advertising costs which, coupled with modest sales, barely cover expenses. Zhao Gao, from Zhejiang, noted that strict promotional rules and customer distrust hinder profitable participation, driving some to opt-out. Du Baonian, a food company owner, continues to engage in the festival despite declining sales and increased costs. He hopes broader advertisement strategies may bolster his position amidst decreasing consumer spending.

As domestic sales dwindle, e-commerce companies are eyeing international expansion. Promotions like global free shipping are being leveraged to increase overseas market penetration. Alibaba reported that its strategy led to doubled sales for 70,000 merchants and a surge in new customers in markets such as Singapore and Hong Kong. This global outlook reflects a shift as companies adapt to the domestic economic landscape. (This story was generated by Newser's AI chatbot. Source: the AP)

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