China’s biggest shopping event starts five weeks early to revive spending

It is known to be the largest online shopping event in China – it takes place on November 11 every year.

But this year, Singles’ Day sales actually began in mid-October, as part of efforts by Chinese retailers to boost spending in the sluggish market.

China has been plagued by issues such as rising youth unemployment, a protracted real estate crisis, sky-high government debt, and the ongoing trade war with the United States — all of which are causing the country’s consumers to cut back on their spending.

The Chinese government is spending billions through family benefits, wage increases and discounts on consumer goods to try to counter this, but retail sales growth still fails to meet expectations.

Singles’ Day was originally created by Alibaba as a Chinese shopping festival, and is similar to Amazon Prime Day or Black Friday promotions elsewhere in the world.

The event is a major revenue driver in the fourth quarter of the year, and features deep discounts online and in stores, with most of the country’s retailers competing for sales.

Over the years, window sales have evolved from a single day into one of the biggest shopping events of the year, often celebrated with extravagant opening events featuring pop stars like Jessie J.

But this year, retailers launched their sales campaigns in October, coinciding with the end of the Golden Week holiday in China.

Platforms such as Taobao, JD.com and Douyin are actively promoting “11.11” sales, with banners on their apps offering discounts and coupons.

Alibaba, which operates e-commerce platforms Taobao, Tmall, and AliExpress, He said in his new position This year, the “11.11 World Shopping Festival” will start on October 15.

The company also leverages artificial intelligence in its search and recommendation tools to make it easier for shoppers to navigate its sprawling sites and suggest relevant products.

Chinese consumers have adopted more cautious spending habits since the Covid-19 pandemic – a trend that has continued as the country continues to battle deflation.

The spending crunch has hit high-end retailers particularly hard. Fashion brands such as Louis Vuitton and Burberry have reported declines in sales in recent months in China, which accounts for about a third of global luxury goods sales.

However, investors appear optimistic about the Chinese market’s recovery, with shares of luxury brands such as LVMH and Moncler rising this week, supported by signs of improving demand in the region.