China is in the middle of the 10th Single’s Day, a very successful shopping holiday. But both the US-China trade war and the drop in stock markets might hit the most optimistic expectations as consumer confidence drops, says business analyst Shaun Rein, author of The War for China’s Wallet: Profiting from the New World Order to the South China Morning Post.
The South China Morning Post:
This year, more merchants affiliated with Alibaba and consumers outside China are expected to join in the festivities. Southeast Asian e-commerce subsidiary Lazada Group will hold for the first time Singles’ Day promotions across Singapore, Malaysia, Thailand, Indonesia, the Philippines and Vietnam, according to Alibaba.
Marketplaces like Zalora, Shopee and Expedia are offering consumers in markets like Singapore discounts if they shop on the platforms during the Singles’ Day period.
However, recent China-US trade tensions and a weak stock market have battered consumer confidence, according to Shaun Rein, managing director of China Market Research Group.
“Sales from Double 11 are still going to grow, but not as much as before,” Rein said, adding that many brands are likely to have to offer deeper discounts this year to encourage consumer spending.
But Rein acknowledged that Singles’ Day has changed global strategies for retail brands.
“10 years ago, Singles’ Day was still a minor event, and brands were focused on promotions for the Lunar New Year,” he said.
“Now Singles’ Day is a bonanza – it’s Christmas Day, Boxing Day and Black Friday all wrapped into one. It’s not just for singles any more, it’s for everyone, offering everything from cheap items to big-ticket purchases.”
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