China’s biggest shopping event of the year exceeds low expectations
From CNBC: 2024-11-12 03:27:51
China’s Singles’ Day shopping festival exceeded expectations with robust growth despite weak consumer sentiment. Major e-commerce companies like Alibaba and JD.com reported increases in GMV and active buyers. The Chinese government’s stimulus measures may have contributed to an uptick in consumer sentiment leading up to the event.
Sales on Singles’ Day showed growth in categories like outdoors, pet care, and blind box toys. The blind box category alone grew from nothing to over $2 billion, showcasing the rapid consumer adoption in China. Retail sales in October are expected to have risen by 3.8% from a year ago, showing an improvement from September.
Experts predict a rebound in consumer confidence in the second half of 2025 after additional stimulus measures. China’s Ministry of Finance hinted at more fiscal support in the coming year. While premium brands struggle, higher-end brands like Lululemon may continue to thrive, and local brands can adapt faster to market changes.
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