China Faces ‘Single’ Day, Can We Recover Shrinking Consumption? State media promotes ‘increased consumption’
China Faces ‘Single’ Day, Can We Recover Shrinking Consumption? State media promotes ‘increased consumption’
Chinese Singles Day (CG)[연합뉴스TV 제공]
In China, which is experiencing a decline in consumer sentiment in its domestic market, attention is focused on whether the biggest shopping event of the year, Singles Day (Nov. 11), will affect stimulant use.
China’s official Xinhua News Agency reported that domestic market prospects are being stimulated by the single-day event on the 11th, which will boost spending both online and offline.
It has been found that home appliances are gaining maximum popularity on Singles Day thanks to subsidizing the sale of used products which were previously effective.
A woman living in Guangzhou joined the ‘craze’ by buying a new TV from an offline home appliance store at a convenience of 2,000 yuan (about 380,000 won) because the television she is using at home has recently been visited by people offline. Consumer traffic is increasing at home appliance stores.
The father and daughter added that they benefited from both trade-in subsidies and single day discount events for used home appliances.
This year, China implemented a policy to replace consumer goods such as old cars and home appliances with new products.
Xinhua News Agency emphasized that there are foreign media reports that the Chinese government’s consumption promotion measures have not only led to an increase in sales of home appliances, but also led to investors buying stocks of Chinese electronics companies such as Media and Haier.
According to statistics, as of November 8, a total of 20.257 million consumers have purchased 30.458 million units of eight types of home appliances, including refrigerators, washing machines and TVs, this year. In terms of cumulative sales, it recorded 137.79 billion yuan (about 26.7 trillion won).
Meanwhile, Alibaba Group, a Chinese e-commerce company that first hosted the event in 2009, planned November 11, the day when four numbers overlap ‘1’, as a shopping day for ‘singles without boyfriends’, and record ‘jackpots’. Sales were released on Singles Day every year, but haven’t been released since 2022.
The analysis revealed that the impact on consumption during Singles Day was not significant, with the decision to go private due to a combination of factors including slowing domestic demand and changes in the consumption patterns of young Chinese people.
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