The heat of China’s “Double 11” shopping festival has faded this year, with major e-commerce platforms such as Alibaba and JD.com not disclosing specific sales data. The slowdown in the Chinese economy has led to insufficient consumer spending, making it difficult for sellers to maintain their businesses.
The “Double 11” promotion originated in 2009 when Taobao (Tmall) held an online promotion on November 11, which exceeded expectations in terms of sales, leading to it becoming a fixed date for large-scale promotions by Taobao. This holiday is also seen as a barometer of consumer confidence.
This year’s “Double 11” started on October 24, 10 days earlier than last year, marking the longest “Double 11” in history. However, the economic slowdown, real estate crisis, and deflationary pressures have resulted in soft consumer demand, causing consumers to reduce their willingness to make purchases, with many choosing to consume rationally.
“I only spent a few hundred yuan on some daily necessities,” Wang Haihua, who runs a fitness center in Beijing, told the Associated Press. “The prices on e-commerce platforms during ‘Double 11’ may not necessarily be cheaper than usual.”
Zhang Jiewei, a 34-year-old who runs a barbershop in Xi’an, also expressed mistrust in the “Double 11” promotions, noting that some merchants tend to raise prices before offering discounts, creating a perception of getting a good deal for consumers.
He said, “Two or three years ago, I used to buy a lot of things, even bought a phone,” “After the epidemic, my income decreased, so I stopped buying. I don’t plan to buy anything this year.”
Some experts quoted in the report believe that Beijing’s stimulus policies have not significantly boosted consumer confidence. Shaun Rein, founder and managing director of the China Market Research Group, pointed out that due to the weak economy, consumers have reduced big-ticket expenditures, and with discounts prevalent throughout the year, the allure of “Double 11” has diminished.
A journalist from the French newspaper Le Monde visited a slightly rundown building called “Dayuan” in the northern part of Guangzhou, with a sign on it saying “E-commerce Live Streaming Base.”
Inside a room upstairs, the journalist met businessman Huang Yuepei. During the “Double 11” shopping festival, the journalist expected to hear about crazy shopping activities, but instead, Huang talked about the decline in online furniture sales.
Huang smiled and said, “We have nothing to do, so I bought a karaoke machine to pass the time.” He also took out a deck of cards from a drawer, indicating that consumer demand is sluggish, “Obviously, people are more cautious with their money than before.” Therefore, he did not participate in the “Double 11” promotions this year as the profit margins were too thin, and he couldn’t keep up.
Opposite Huang Yuepei’s online shop is a women’s clothing store, where the owner, Ms. Gu, sells women’s clothing on platforms such as Taobao and Pinduoduo. The best-selling item is a jumpsuit priced at just over 100 yuan.
While processing “Double 11” orders, Ms. Gu mentioned the economic “slowdown.” Between the disappearing consumer enthusiasm and price wars, Ms. Gu finds it difficult to determine which one worries her more.
She sighed, “Some small, usually the cheapest online retailers, are no longer participating in ‘Double 11’ because they can’t keep up anymore.” Managing free returns for products is complicated, but not participating in the “Double 11” activities would be even more challenging.
Le Monde noted that the significance of this year’s “Double 11” is profound as the slowdown in economic growth has not only worried China but also other countries. In recent weeks, the Chinese authorities have announced a series of economic stimulus measures, and all economic stakeholders are eager to know when the Chinese economy will restart and even if it will restart at all.