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Chinese retailers have expanded their annual Singles' Day sales to a record five-week period to stimulate consumer spending amid a slowing economy. Alibaba and JD.com are offering deep discounts, subsidies, and rapid delivery options, while integrating AI into search and recommendation tools. Early results show strong sales from major brands, yet consumer interest is cautious. Analysts expect growth in personal care, apparel, and electronics, while home appliance sales may decline compared to last year. The extended event reflects efforts to encourage consumption despite domestic economic pressures and weak retail demand.
Chinese e-commerce platforms have extended the Singles' Day shopping festival to five weeks this year, aiming to strengthen consumer spending in a challenging economic environment. Companies such as Alibaba and JD.com are leading the initiative, offering deep discounts, subsidies, and faster delivery to attract shoppers. Advertisement
Alibaba announced a 50 billion yuan ( ≈ USD 7 billion) subsidy for its 88VIP members, and highlighted that 35 brands, including Nike, L'Oréal, Anta, and Proya, sold over 100 million yuan of goods in the first hour of the sale. The company has also integrated AI tools into its search and recommendation systems to increase engagement, expecting around a 10% improvement in click-through rates.
One-hour delivery, known as instant retail, is a key focus this year. Both Alibaba and JD.com are investing heavily in these rapid delivery channels, which have been growing faster than e-commerce overall. JD.com launched its campaign shortly after the end of China's Golden Week holiday, and ByteDance's Douyin app also started promotions around the same time.
Despite these efforts, consumer response has been cautious. Spending during Golden Week hit a three-year low even as travel rose, highlighting potential challenges for the extended Singles' Day. Some shoppers, like a Beijing resident, mentioned that they were only looking for a specific item, such as comfortable sports shoes, and had not found anything appealing yet.
JD.com announced it would offer over 100,000 "hit" products at their lowest prices of the year and planned to sell 50,000 pairs of thermal long johns at just 2 yuan (é USD 0.30) each, including shipping. Analysts believe products that improve personal appearance or comfort, including beauty items, apparel, and packaged foods, are likely to perform well. Conversely, home appliances, which saw a boost last year under government subsidies, are expected to see a decline, with Nomura forecasting a 20% drop in fourth-quarter sales.
Some experts suggest that while consumers may avoid big household purchases, they could still spend on electronics and personal gadgets. For instance, new Apple models may drive strong demand this year.
Retailers are placing significant focus on technology, pricing, and logistics to maintain momentum over the extended sale period. However, weak domestic consumption, lingering property market challenges, and cautious buyer sentiment will likely continue to influence overall sales performance.
Source Reuters
5th Jun, 2025
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