At Extreme Investor Network, we pride ourselves on delivering cutting-edge information to help you stay ahead in the world of finance. Today, we bring you exclusive insights into China’s biggest shopping event, Singles Day, and how it impacts the financial landscape.
Singles Day, also known as 11.11, is China’s version of Black Friday, where e-commerce giants like Alibaba and JD.com offer massive discounts and promotions to boost sales. This year, early indicators suggest a pickup in select categories, with overall sales growth expected to be relatively modest.
According to Jacob Cooke, co-founder, and CEO of WPIC Marketing + Technologies, Singles Day GMV is showing signs of improvement compared to last year. GMV, or gross merchandise value, is an industry measure of sales over time. In 2021, Alibaba reported an 8% increase in GMV, while JD’s GMV climbed by 28%, reaching over $139 billion.
This year, Singles Day GMV reached 845 billion yuan ($119.1 billion) by October 30, with around 80% coming from Alibaba, JD.com, and PDD. Livestreaming sales platforms like Kuaishou and Douyin contributed nearly 20% to the total GMV, showcasing the evolving shopping trends in China.
While the growth rate of Singles Day GMV is not as high as before, Cooke predicts a 15% increase this year, driven by experiential-based products rather than luxury goods. He believes that consumer habits have shifted towards more practical purchases, leading to changes in shopping preferences.
The surge in sales this Singles Day can be attributed to China’s subsidies for trade-ins of home appliances, along with efforts to stimulate consumer spending. Analysts at UOB Kay Hian forecast a 4% to 5% growth in Singles Day GMV, with the home appliance category benefiting from the trade-in program.
Categories like toys and collectibles, known as IP in China, have emerged as a new trend this year. International brands are vying for licenses to tap into this market, offering products based on popular games and animated series. This trend highlights the evolving consumer preferences in China and the increasing demand for unique and collectible items.
Despite pockets of growth, sentiment around Singles Day this year seems more subdued compared to previous years. Chinese consumers are focusing on purchasing high-quality products that they actually need, rather than getting caught up in the frenzy of discounts.
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