This year’s Double Eleven shopping festival, typically characterized by rampant purchasing and overwhelming sales, has taken on a surprisingly subdued atmosphere. Many merchants have described the situation as “remarkably quiet,” with a noticeable decrease in promotional fervor and consumers becoming increasingly cautious in their spending habits. Business owners express a sense of despair, stating, “Each year seems to be worse than the last; we can only endure and navigate through this slow downturn.”
Data from the analytics firm Star Map Data reveals that during the first round of Double Eleven promotions, which took place from October 7 to October 31, the total Gross Merchandise Volume (GMV) for e-commerce products saw only a 2.4% year-over-year increase. This marks a stark contrast to the 14.2% growth reported during the same period last year.
Many e-commerce operators report that November, traditionally the peak season for online retail, has failed to deliver the usual energy and excitement this year. The tranquility surrounding this year’s Double Eleven has been startlingly unfamiliar to merchants used to the frenzied shopping environment of previous years.
One e-commerce entrepreneur, Qian Cheng, noted the dismal sales figures during the critical shopping days from October 8 to 11, mentioning that sales were nearly nonexistent. “It has been completely stagnant. When an order is finally placed, it often ends in cancellation,” he explained.
Qian shared that his company has pushed a particular product through paid promotions, driving the price down to the bare minimum, nearly at cost. Even with a platform-offered discount coupon of 2 yuan, there have been no substantial orders.
Meanwhile, another business owner, Zhang Yi, expressed disappointment, highlighting that every year during Double Eleven is typically the most lucrative time of year. However, given the poor sales during the recent Mid-Autumn Festival and National Day, he had held high hopes for this year’s Double Eleven, only to find the outcome overwhelmingly lackluster.
Zhang confided that many of his supplier clients reported similarly bleak circumstances. “Numerous clients shared that even with special promotions, they received minimal traffic, with most of the attention diverted to larger, well-established brands.”
Zhao Lei, who has been in the e-commerce industry for over a decade, provided an analysis of the current situation, identifying the overall economic environment and an oversaturated market as key factors contributing to the decline in consumer purchasing power. He pointed out that continuous promotional events – from New Year’s and Valentine’s Day deals to monthly brand-specific sales – have turned almost every day into a sale day. This pervasive discounting has significantly diminished the draw of the Double Eleven event itself.
“I originally anticipated achieving 500 or 600 orders this second half of the year, but it appears I will only reach about 400, which is certainly less than previous years,” Zhao lamented.
Looking ahead, he expressed concern that next year would be even more challenging due to the increasing number of participants in e-commerce. “With more people entering this field, the prospect of scaling up becomes virtually impossible, making growth exceedingly difficult.”
Zhao highlighted that while previous years supported revenue gains through high volume, those days are now behind. Merchants must instead focus on maximizing profit margins on each purchase. “Recognizing that consumer interest has dwindled, I have raised the profit margins on each order. The era of chasing after profit solely through high volume has come to an end,” he concluded.
This current climate of cautious consumer behavior and intense market competition presents a new reality for e-commerce businesses as they strive to adapt to the shifting landscape. The retailers are learning that it takes more than just attractive deals to capture consumer interest. They must innovate and rethink their strategies to survive in this increasingly challenging environment.