E-commerce companies such as JD and Alibaba announce “increase in transactions”
Detailed figures are not disclosed… Expert: “Reduce spending and choose low prices”
As China’s economy continues to slump, the consumer market showed activity on Single’s Day (November 11), a representative shopping festival, with transaction volume increasing compared to last year. However, local companies and consumers appear to be taking a somewhat cautious attitude, as clear figures on sales are not disclosed and consumption is also conservative.
According to the Associated Press on the 13th, Chinese e-commerce company Jingdong announced on the 12th that transaction volume, orders, and number of users all hit record highs during this year’s Single’s Day.
It was reported that more than 60 brands recorded sales of more than 1 billion yuan (about 181.4 billion won), and the transaction volume of nearly 20,000 brands increased more than three times compared to the same period last year.
“Sales figures show that there is still clear growth in consumption,” said Lu Fei, senior researcher at JD’s Consumer Industry Development Research Institute. “But what cannot be denied is that consumers are becoming more and more rational.”
E-commerce company Alibaba also announced that as of midnight on the 11th, the total product value of about 400 brands exceeded 100 million yuan (about 18.1 billion won), and the total sales of 38,000 brands doubled compared to the previous year. It also added that its Taobao and Tmall groups saw an increase in orders from other sectors compared to last year’s event period.
However, a significant number of e-commerce companies are not disclosing detailed figures on Singles’ Day sales performance this year as they did last year.
The China Post announced that delivery volume has also increased. The Postal Service announced that express service providers broke a new record nationwide on the 11th by collecting about 640 million express parcels, a 15.8% increase from the previous year.
Likewise, there are announcements that Singles’ Day sales have increased this year as well, but the local mood appears to be somewhat cautious.
The Associated Press reported, “Chinese shoppers are tightening their purse strings amid concerns that unstable consumer sentiment could affect Singles’ Day.”
Bain & Company also cited the results of a survey of 3,000 Chinese shoppers, which found that more than three-quarters of respondents said, “Given uncertainty about the economic situation, they plan to reduce spending or maintain the level of spending this year.” did.
Shi Gengchen, who runs a billiards hall in Beijing’s busy Chaoyang District, told the Associated Press that “there are fewer customers than before,” and that sales are only 40% of what they were before the pandemic.
Market analysts say that the Chinese have become much more cautious than before. “The hype and excitement surrounding Single’s Day is somewhat over,” said Sean Line, founder of China Market Research Group (CMR), a Shanghai-based research firm. “I don’t expect a big discount from Gunje,” he analyzed.
“The crisis in China’s real estate sector will reduce overall spending on durable goods such as home appliances,” said Jacob Cook, CEO of WPIC Marketing, an e-commerce consulting firm. “As buyers become less confident in their wealth, they will shift to cheaper brands.” “It will happen,” he predicted.
Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.