Analysts expect Chinese consumers to spend more on imported products and foreign luxury brands, since many Chinese tourists were unable to travel internationally due to the coronavirus pandemic and tightened travel restrictions.
A survey by consulting firm Oliver Wyman found that 86% of Chinese consumers are willing to spend the same as or more than during last year's Singles' Day festival.
In the last six months or so, wealthy households have actually spent more money, said Sean Shen, customer and strategy competence leader for EY in Greater China. We also see that purchases of luxury segment products are increasing because of the international travel restrictions.
Sales of electronic goods and health and wellness products are also expected to rise, as more people work from home and pay more attention to their health amid the pandemic, according to a report by consultancy Bain & Company.
To help merchants cope with the impact from the coronavirus, online platforms have extended the shopping festival period this year in hopes of boosting sales.
Both Alibaba and JD.com, the country's two biggest e-commerce companies, began offering discounts on Oct. 21, three weeks ahead of Nov. 11. Some brands and merchants that slashed their prices booked hundreds of millions of yuan (tens of millions of dollars) in sales just hours into the shopping festival.
Tang Chenghui, an electrical engineer who lives in Beijing sees Singles' Day as an opportunity to stock up on snacks and imported products such as milk from Australia. Ahead of the festival, Tang pre-ordered 3 boxes of duck eggs, 10 packets of soybean milk powder, two boxes of yogurt, coffee and wine.
I'm buying more snacks this year because I've just moved into a new apartment and have enough storage space to stockpile the snacks I like, said Tang. Some of these products are really cheap during the Singles' Day discounts.
Unlike Black Friday and Cyber Monday in the US, Singles' Day in China is not just about deep bargains. Alibaba pioneered the concept of Singles' Day and holds an annual gala on Nov. 11 with celebrity performances to entertain shoppers.
E-commerce sales via livestreaming and Alibaba's annual gala are part of a shoppertainment trend which blends shopping with entertainment in order to become more appealing and engaging to shoppers.
Mini games within online shopping platforms entice shoppers with deeper discounts while encouraging them to spend more time within the app.
Because of COVID-19, brands and retailers have doubled down on e-commerce and livestreaming commerce to drive growth, and it will show strongly on (Singles' Day) this year, said Wang Xiaofeng, a senior analyst at Forrester.
But while millions of shoppers spend hours on mini games hoping to snag better bargains, some are irked by the complexities required to win such discounts.
Black Friday discounts tend to be better, and they are more straightforward, said Liu Zhirou, a 27 year-old Beijing-based accountant. Now, I still ask my friends to help me buy things from the U.S. during Black Friday. The rules around Singles' Day discounts now are getting more and more complicated, she said. I usually just spend my money on Black Friday, and buy less on Singles' Day.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.