Key Points
- Sales during China’s Singles’ Day shopping festival grew by nearly 18%, reaching almost 1.7 trillion yuan ($238 billion).
- The pace of growth has slowed significantly compared to previous years, reflecting a cautious consumer mood.
- Economic challenges, such as a weak property market and high youth unemployment, are impacting spending.
- This year’s festival was extended by a week, which likely boosted the final sales numbers.
Sales during China’s biggest online shopping event, Singles’ Day, grew by almost 18% year over year. However, this growth was slower than in previous years, as cautious consumers sought more affordable deals.
Shoppers in China have been spending less lately due to a long-term slump in the property market, slow wage growth, and high unemployment among young people—the very group that would normally be the biggest spenders during these online sales.
Chinese retail data provider Syntun reported on Wednesday that the total sales for this year’s shopping festival reached nearly 1.7 trillion yuan ($238 billion). While the 18% increase is significant, it’s a noticeable drop from the nearly 27% growth seen in 2024.
Syntun also noted that this year’s festival was about a week longer than usual, which makes direct comparison difficult. Analysts believe the longer sales period was a way for e-commerce companies to boost their numbers amid weaker demand.
Despite the slower growth, some experts see positive signs. “This year’s Singles’ Day should be viewed as a positive signal for China’s consumer economy,” said Jacob Cooke, CEO of the consultancy WPIC Marketing + Technologies. He noted that strong participation and high engagement show that consumers are still spending.
The e-commerce giant Alibaba started Singles’ Day back in 2009 as a one-day sale on November 11. Over the years, its growth has been slowing, and further increases in sales may be tough in the current economic climate.
Still, JD.com, one of China’s largest e-commerce platforms, reported that its turnover hit a record high, with a nearly 60% increase in orders. Alibaba’s platforms did not release their total sales figures, but the company said some of its merchants saw sales more than double.
