China’s Singles’ Day shopping festival — the world’s largest retail event — recorded slower growth this year, reflecting a shift toward frugal spending as households cut back amid the country’s sluggish economic recovery.
According to early data from Chinese research firm Syntun, total sales across all e-commerce platforms reached 1.695 trillion yuan (≈ $238 billion), marking a 14.2% year-on-year increase. While still sizable, this is significantly below the 26.6% surge recorded in 2024, underscoring a consumer base increasingly focused on essential and value-driven purchases.
Shoppers Pull Back, Becoming “More Rational”
The report noted that Chinese consumers have become “more rational and willing to pay for real value,” prioritizing purchases based on necessity rather than impulse. Categories related to health, convenience, and personal values saw stronger traction, while discretionary spending softened.
Home appliances led the sales rankings at 266.8 billion yuan (16.5% of total), followed by mobile and digital products (14.6%) and apparel (14%).
Economic Slowdown Dampens Festive Spending
The softer spending momentum comes at a time when China’s broader economy is under pressure. Retail sales growth for October is expected to fall to 2.8%, down from 3% in September, according to a Reuters poll.
With wage growth slowing and savings rates rising, consumers are resisting the aggressive promotions typically associated with Double 11. Companies have also lengthened the promotional period, while many major platforms — including Alibaba and JD.com — have stopped disclosing GMV, reflecting a more cautious environment.
AI-Driven Boost for E-Commerce Giants
Despite muted overall growth, top platforms still saw pockets of strength fueled by artificial intelligence integration and supply-chain optimization:
- JD.com reported record transaction value, with a nearly 60% jump in orders and 40% growth in active users.
- Alibaba extended its promotional window through November 14.
- TikTok Shop joined the giants, contributing to a combined 67 billion yuan in instant retail sales, a staggering 138.4% YoY increase.
However, community group-buying — once popular during the pandemic — slumped by 35.3%, generating just 9 billion yuan.
Xiaomi, China’s electronics powerhouse, recorded 29 billion yuan in sales, down from last year’s 31.9 billion yuan.
Mixed Performance Across Categories
Consumption patterns pointed to uneven demand:
- Mother & baby products fell to 9th place, with sales of 61.1 billion yuan.
- Pet products held steady, generating 9.4 billion yuan across major platforms.
- Adult toy categories, which boomed in 2024, saw demand normalize.
According to WPIC Marketing + Technologies, at least 10 flagship stores still exceeded expectations by 30% or more — a rare outcome amid the pullback.
What This Means for Global Brands
Singles’ Day remains the key barometer for China’s fourth-quarter consumer sentiment. This year’s results indicate:
- Consumers are trading quantity for quality
- Spending is shifting toward health, essential goods, and value-driven brands
- Growth will remain in high single to low double digits, far from the explosive expansion of prior years
With China’s leadership promising new stimulus aimed at boosting consumption — primarily through targeted subsidies rather than direct cash — brands will need to adjust strategies for a more cautious, value-focused Chinese consumer in 2026.
