China’s Singles' Day shopping festival struggles to shake off weak consumer spending

Summary

• China's Singles' Day festival sales as of Oct. 31 totaled just over one trillion yuan, broadly matching the same period last year despite early signs of struggling consumer spending.
• Retailers extended the festival duration to drive sales, contributing to a record 1.7 trillion yuan in total 2025 sales, yet current demand remains subdued due to a prolonged property downturn.
• E-commerce giants like Alibaba are integrating AI tools & promoting AI token plans to encourage frugal shoppers to spend more during the event.
• Domestic retail sales grew only 1.1 per cent from January to September, contrasting with robust 4.6 per cent overall economic growth driven largely by a 35 per cent surge in exports.
• Consumer confidence is weakened by falling home prices, which dropped roughly 20 per cent from 2021 peaks, leading to widespread "discount fatigue" & a shift toward "consumption downgrade."
• Big-ticket item sales are declining, with passenger car sales dropping nearly 25 per cent domestically while exports jumped 71 per cent.
• Luxury goods spending has softened, with major firms like LVMH & Kering reporting weaker demand in China.
• Policymakers face reduced urgency to stimulate domestic demand as strong export performance & industrial ambitions continue.
• Bright spots remain in health, lifestyle, & experience sectors, with online sales of imported fish oil rising nearly 43 per cent.
• Consumer trends are shifting toward "just living life" & internal fulfillment, with households holding back spending due to high youth unemployment & lagging income growth.