Has hype around China’s Singles’ Day fizzled out?

What happened Chinese consumers are no longer that excited about Singles’ Day, according to Bain & Co. The consultancy’s latest Singles’ Day report, released yesterday, shows that in a survey of 3,000 consumers across Chinese cities, only 53 percent of respondents said they were excited by this year’s shopping extravaganza, compared with 76 percent in 2021. This waning enthusiasm is coupled with pronounced caution when it comes to spending. Only 23 percent of respondents said they would spend more this year, whereas 77 percent plan to spend less or maintain their spending at 2022’s level. When asked about their motivations for spending during the festival, which culminates on November 11, 45 percent said they were mainly seeking value, with many waiting for better promotions or even switching to cheaper brands to make their money go further. The Jing Take Given the slowdown in China’s GDP growth this year, it’s unsurprising that Chinese shoppers are feeling the squeeze and becoming more value-conscious. According to Bain, this trend is particularly evident among China’s lower-income consumers, residents of lower-tier cities, as well as Gen Z shoppers, who have yet to build up the spending power of their older peers. But this budget-first mentality isn’t unique to this year’s bonanza. As James Yang, a Hong Kong-based partner at Bain & Co., points out, this level of caution is actually comparable to consumer sentiment last year, when 76 percent of shoppers mentioned reducing or maintaining spending during Singles’ Day. “There seems to be an element of structural slowdown about the event linked to its longevity and scale. This year’s survey dug deeper into general spending intentions beyond Singles’ Day, and 71 percent of respondents told us they would cut or maintain retail spending through 2023,” he said. Jacob Cooke, CEO of WPIC Marketing + Technologies, elaborates on this point, noting that the rise of secondary shopping festivals like 618, 12.12, and the Qixi Festival means that discounts are now available year-round. “Although brands will generally offer the best deals of the year on Singles’ Day, the prevalence of discounting as a marketing and sales tactic has eroded the buzz around the festival,” he tells Jing Daily. As consumers grow fatigued by the festivities, retailers must aim to surprise and delight audiences while still responding to their demand for value. “A winning formula in China will combine everyday value with inspiration, amusement, or diversion,” said Melanie Sanders, head of Bain’s retail practice in Asia Pacific, in a release. “For instance, standing out for value-conscious shoppers might involve expanding a private label offering or providing unbeatable value.” “A winning formula in China will combine everyday value with inspiration, amusement, or diversion. For instance, standing out for value-conscious shoppers might involve expanding a private label offering or providing unbeatable value.” Livestreaming is another way to combine shopping and entertainment. The livestreaming gross merchandise volume of last year’s Singles’ Day was more than double that of 2021, and retailers are expected to further embrace the interactive format this time around, states the report. Tmall is already seeing this reflected in 2023 pre-sales results. On October 24, Fila generated 100 million RMB (13.7 million) in transactions through its livestreaming channel, while luxury fashion label MCM’s livestreaming sales on October 31 were six times higher than the same day last year. In other words, succeeding during Singles’ Day and beyond requires winning the heads and hearts of consumers. By delivering better product value and creating shopping experiences that spark interest, brands can still win in an otherwise lukewarm year. The Jing Take reports on a piece of the leading news and presents our editorial team’s analysis of the key implications for the luxury industry. In the recurring column, we analyze everything from product drops and mergers to heated debate sprouting on Chinese social media.

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Has hype around China’s Singles’ Day fizzled out?