Retailers Celebrate Early Success as Singles’ Day Sales Surge

China’s renowned shopping event, Singles’ Day, has launched earlier than ever this year, resulting in significant sales boosts for retailers. Traditionally held on November 11, this annual festival is the largest online shopping event globally, surpassing even Black Friday and Amazon’s Prime Day. In 2023, estimated sales reached an impressive US$156.4 billion (1.14 trillion yuan), with projections of US$200 billion for 2024.

To gain a competitive edge, retailers have increasingly turned to artificial intelligence (AI) tools. JD.com, the country’s largest retailer, initiated its Singles’ Day promotions on October 9, shortly after the conclusion of the extended Golden Week holiday, which this year combined the National Day and Mid-Autumn Festival. In a similar move, Kuaishou, a popular video e-commerce platform, began its promotions even earlier on October 7, ahead of rival Douyin, which followed suit on October 9.

The early launch appears to have yielded positive results. According to a report from China Daily, JD.com experienced a surge in sales of over 52,000 brands, with increases exceeding 300 percent between October 9 and October 13. Notably, more than 3,300 product categories saw year-on-year growth of over 100 percent. Alibaba, which commenced presales on October 15, has also leveraged AI across its Taobao and Tmall platforms, integrating large language models into their core search and recommendation systems.

Liu Bo, Vice President and President of Tmall, reported that sales results exceeded expectations, with 35 sellers achieving sales surpassing 100 million yuan (approximately US$14 million) within the first hour of presales. Consumer electronics and beauty products, in particular, thrived. The introduction of new products like Apple’s iPhone 17 series and Xiaomi’s 17 lineup, along with popular items such as Apple’s AirPods 4 and Nintendo’s Switch, further fueled demand.

Beauty brands also made a significant impact, with eight brands surpassing 100 million yuan in sales within just the first 10 minutes. Proya, a leading Chinese cosmetics brand, was the first to break the 100 million sales mark on October 20, joined by giants such as Estee Lauder, SK-II, and L’Oreal.

Changing Consumer Behavior

The robust sales during the early Singles’ Day period follow a weaker spending trend during this year’s Golden Week holiday, which recorded the lowest average spending per trip in three years. According to calculations by Reuters based on government data, average spending per trip during Golden Week was 911.04 yuan, down 0.55 percent from the previous year.

Experts suggest that the success of an earlier Singles’ Day points to the evolving spending habits of Chinese consumers, who are increasingly value-conscious. The trend of rational consumption is becoming more prevalent. However, extending the shopping period may also have drawbacks. Fu Yifu, a researcher at Su Merchants Bank, noted that prolonged promotional periods could lead to consumer fatigue as shoppers navigate countless promotions across platforms.

The rise of instant retail is also reshaping how consumers approach shopping. Hong Yong, an associate researcher at the Chinese Academy of International Trade and Economic Cooperation, explained that this trend is shifting traditional sales events from bulk purchasing to a “buy now, get now” model, allowing consumers to receive their purchases almost immediately.

Despite the excitement surrounding early promotions, some consumer skepticism remains. A commentary in Worker’s Daily highlighted concerns about many businesses offering only minimal discounts. Shoppers are increasingly cautious, seeking genuine deals rather than token price cuts. The article emphasized that while simplifying promotional rules is essential, winning consumer trust relies on transparent pricing and a substantial shopping experience.

As Singles’ Day approaches, the unfolding events will undoubtedly continue to shape the landscape of e-commerce in China, revealing both opportunities and challenges for retailers and consumers alike.