SHANGHAI (Reuters)

Not Black Friday, Not Cyber Monday, but Singles Day

The world's biggest shopping event occurs in China each year known as Singles Day.

Originally a holiday celebrating single individuals as a counter to Valentine's Day, Singles Day has transformed into a weeks-long online shopping festival, starting on October 14 and peaking on November 11 this year, marking it as the longest-ever Singles Day sales period.

Origin of Singles Day

The idea originated at Nanjing University in 1993, initially dubbed "Bachelor's Day." On this day, single individuals spoil themselves with gifts and host social gatherings.

Consumer Spending Trends

In 2022, the total sales during this shopping spree, also referred to as "Double 11," reached 1.14 trillion yuan (approximately $156.4 billion), according to Syntun data. This figure surpasses the $38 billion spent by U.S. shoppers during Cyber Week.

Despite record sales, growth has slowed, with only a 2% increase last year marking the slowest rise yet. The novelty of Singles Day has diminished due to the rise of other festivals such as the mid-year 618 sales.

"Vendors are prioritizing profit over gross merchandise value," noted独立电商专家 Lu Zhengwang. However, achieving profitability remains difficult amid intense competition, compelling vendors to focus on lower prices.

Popular Brands and Products

Launched by Alibaba in 2009, "Double 11" has witnessed participation from major platforms like JD.com and Pinduoduo. Last year, consumers leaned towards essentials, limiting spending on discretionary items like home appliances and furniture.

This year’s household appliance sales are expected to improve, aided by a 150 billion yuan trade-in subsidy scheme.

A Bain survey revealed that before the 2023 Singles Day, 49% of shoppers expressed excitement, down from 53% in 2022 and 76% in 2021. Three-quarters of respondents expected to spend the same or less in 2024.

Singles Day vs. Black Friday

In 2022, U.S. shoppers favored smart watches, toys, and video games during Black Friday and Cyber Monday. From 2014 to 2021, Singles Day grew at an average annual rate of 34%, outperforming Cyber Week's 17% average increase.

Opportunities for Companies

American brands like Nike, Estee Lauder, and Procter & Gamble have substantial presences on platforms like Tmall and JD.com.

Following the end of strict COVID-19 measures in 2022, aggressive discounting strategies have been prominent in the Chinese shopping landscape, attempting to rekindle consumption trends.

This year, platforms have offered significant discounts on iPhone 16 models, with Tmall slashing prices by up to 1,600 yuan and JD.com matching the offers with promotions, including a free year of AppleCare+.

L'Oreal CEO Nicolas Hieronimus remarked on the extended duration of 11.11, seeking to maintain top brand positions amid the event's extended 10-day duration.