Singles’ Day, conceived as a celebration for individuals who do not have a significant other, emerged in the 1990s when university students in China decided that “singles” deserved a day of their own. Originating at Nanjing University, this day, marked on 11 November (11/11), symbolizes bare branches in Chinese internet slang—a metaphor for single/unmarried individuals. Over the years, it evolved from Bachelor’s Day to Singles’ Day, gaining popularity on campuses and eventually becoming a massive online shopping event.
Singles’ Day Origins
In 2009, Alibaba’s initiation of 24-hour online discounts on 11 November transformed Singles’ Day into a commercial phenomenon, outstripping America’s Black Friday and Cyber Monday. In 2021, Alibaba and JD.com collectively made $139 billion during the event, setting records. However, in 2022, a shift occurred as consumers tightened their budgets, with nearly 40% planning to spend less, influenced by economic challenges, COVID-19 lockdowns, and inflation warnings.
Singles’ Day being affected by Chinese economic woes
The middle class, facing a challenging year in China, witnessed historic youth unemployment and stagnant wage growth. Retail sales grew by only 6.8% in the first nine months of 2023, below prepandemic levels. A housing market crisis, tying up 70% of China’s household wealth, further dampened consumer spending confidence. Massive discounts during Singles’ Day reflected the fierce competition in China’s e-commerce sector, intensified by a government-led crackdown and economic slowdown.
Despite lower prices, analysts question if these are enough to attract consumers. A Bain and Company survey revealed that over three-quarters of Singles Day shoppers planned to spend less or maintain 2022 spending levels. Excitement levels dropped from 76% in 2021 to 53% in 2022. Spending reductions were observed in fast-moving consumer products and durables linked to the property sector.
On social media, trending hashtags like “downgraded consumption” and “if I don’t buy, I can save 100%” revealed consumer sentiments. Concerns were raised about fake promotions, as merchants reportedly raised prices before cutting them for Singles Day. Notably absent from Alibaba’s festival were top ecommerce livestreamers, Viya and Li Jiaqi, who faced scandals, prompting a shift to virtual influencers.
Guochao trend emerging
Amidst these shifts, a trend known as guochao (the pride of China) emerged, with consumers seeking cheaper domestic alternatives, challenging international brands. While sustainability initiatives have been promoted, challenges persist, including high recycling costs, insufficient supervision of packaging, and changing consumer behaviors requiring reorientation towards sustainable consumption.
In essence, the shrinking of shopping bills on Singles’ Day reflects a complex interplay of economic challenges, consumer skepticism, and changing preferences. As China navigates these dynamics, the evolution of Singles’ Day from a celebration of singlehood to a mega-shopping event mirrors the broader shifts in the world’s second-largest economy.
