China’s largest shopping event is taking place, but most retailers and financial analysts are anticipating a level or at best tepid sales increase, noting that consumers are still deeply moved by the country’s economic woes.
The Singles Day buying feast, which started last year, has evolved from an Alibaba function intended to persuade one people to attend a week-long event that culminates on November 11 in all of China’s major e-commerce platforms as well as bricks and mortar stores.
Wu Qian, a furniture retailer, claimed he signed up for JD.com this year as a chance to clear inventory and maybe turn a profit. However, he does not anticipate that the event will show total sales rise.
Users now have an abundance of choices all year long thanks to growth in China’s e-commerce platforms, he said.
The sputtering expansion of the country’s second-largest business over the past few years has resulted in work insecurity for many Chinese people as a result of a property market in crises, trade conflicts, and regulatory crackdowns on a number of industries.
Beijing announced signal plans in late September to boost the second-largest economy in the world, but many of them have not yet been elaborated, let alone had a significant impact on consumer trust.
Last year, cumulative gross merchandising volume ( GMV) sales across major e-commerce platforms rose 2 per cent to 1.14 trillion yuan ( US$ 156 billion ), according to an estimate from data provider Syntun. That’s a far cry from the double-digit development that was once the rule.
” It’s all very polite now”, said Lu Zhengwang, an independent e-commerce professional. ” Sellers are becoming more rational, GMV is not the main quest, income is. But, profit is hard to reach, the competitors is also very intense, and just cheaper-price sells”.
Alibaba and JD.com have been a force in Chinese e-commerce for the past two decades as they face off against PDD-owned Pinduoduo, squeezing the income of thousands of small companies.
This Singles ‘ Day, there have been indications that the force has eased with Alibaba’s home e-commerce arm announcing a boat of merchant-friendly guidelines. JD.com and PDD have likewise flagged vendor support activities.
According to Jacob Cooke, CEO of e-commerce consultancy WPIC Marketing Technologies,” I think platforms now understand that putting pressure on brands to lower prices means they do n’t have the money to pay for their ads.”
Zheng Li, 46, says she used to get Singles Day quite seriously, snatching up discounts on clothes and everyday products but no more.
” This year, I really ca n’t find any inspiration”, she said. ” Even I’ll get a lower jacket for my brother.”