Singles’ Day: Chinese e-commerce giants target new wave of budget-conscious consumers and lower tier cities amid pandemic and belt-tightening
- Spending patterns of Chinese consumers during Singles’ Day will be closely watched by the government as a key barometer of economic health
- The nation’s leading e-commerce players have already cottoned on to more bargain-conscious buyers, eyeing the segment as a new growth opportunity
Unlike some of her colleagues who have shopped until the last minute of November 11 – China’s Singles’ Day, the country’s annual online shopping festival – Yang Fan has decided not to push things too far this year.
The 26-year-old finance manager who lives in Nanchang, Jiangxi province spent almost 12,000 yuan last year on e-commerce platform Taobao, owned by Alibaba Group Holding, buying a handbag from designer brand Bally and high-end SK-II cosmetics.
But this time, she has only spent around 600 yuan so far on unbranded canvas tote bags and cosmetics on budget e-commerce app Pinduoduo.
“The pandemic has really made me think about my previous obsession with big brands. Now I’m ‘revenge saving’,” said Yang.
Yang is not the only one who has chosen to scale down her spending during this year’s shopping festival. The pandemic was a blow to China’s economy, with lockdowns leading to pay cuts and job losses for many. China has been one of the world’s first economies to bounce back from the effects of Covid-19 though, with GDP growing 3.2 per cent in the second quarter and 4.9 per cent in the third, after a contraction of 6.8 per cent in the first.