Double 12 sales event in China hits the brakes, as businesses consider next shopping season

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Workers sort packages overnight at an e-commerce industrial park in Lianyungang, east China’s Jiangsu Province, on November 2. Photo: cnsphoto

China’s Double 12 Shopping Festival, the country’s end-of-year shopping bonanza following the Double 11 festival, rolled the curtains on Sunday, but this year’s event is devoid of boastful and aggressive marketing campaigns from the share of major e-commerce platforms against the backdrop of Internet industry scrutiny. .

The moderate version of the Double 12 shopping event is in part the result of anticipated spending by consumers and merchants on Singles Day, the world’s largest shopping carnival, which saw sales hit an all-time high this year. , and it also stems from companies ranging from e-commerce sites to live streaming platforms launching promotions throughout the year that distract consumers, insiders said. industry.

But such a turnaround does not amount to a decrease in Chinese consumer power, analysts say. Chinese consumer enthusiasm remains, with demand shifting towards higher quality and personalized items, and this will continue to serve as a ballast to support the growth of the world’s second-largest economy.

Competition between e-commerce platforms is largely absent from this year’s Double 12 shopping festival, with very little promotional activity and a shorter sales period. Additionally, many ecommerce platforms have not released sales figures.

A Suning spokesperson told the Global Times on Sunday that promotions on the e-commerce platform this year are more targeted to satisfy different tastes, while consumption has so far shown a trend towards high-end purchases. and more ecological.

For example, sales of home appliances priced over 6,000 yuan ($ 942) have increased 79% year-on-year to date, and sales of high-end beds have increased 108%.

Chinese e-commerce platform Tmall told the Global Times that it will launch several promotions at the Double 12 shopping festival. A representative move will be a sale of 19,800 bottles of Kweichow Moutai, China’s premium baijiu, which should start Sunday at 8 p.m.

“We often say that this year’s Double 11 shopping festival has opened its doors in a low-key fashion, but it also seems like the Double 12 is of little interest,” Liu Dingding, a Beijing-based independent technology analyst, said on Sunday. Global Times. .

An official at a U.S.-listed Chinese e-commerce platform, who spoke on condition of anonymity, told the Global Times that the reason she avoided this year’s Double 12 shopping festival is that the company “mobilized significant resources” during sales of Double 11, which reached record numbers.

“Next January is another sales boon as more Chinese people choose to stay in their workplaces to spend the Spring Festival holidays amid a resurgence of coronavirus cases. demand will explode at that time, we have decided to brake in December and then will run at full speed next month, ”explained the director, noting that the company had great confidence in the purchasing power of Chinese consumers.

Such a philosophy is widely shared by Chinese consumers, some of whom ran out of budgets before December. “Plus, the discounts aren’t big enough to entice me to spend again,” a Beijing-based white-collar worker named Wang told The Global Times.

Analysts pointed out that a drop in public attention to the event does not mean a decline in Chinese consumer power or a freeze in the e-commerce industry.

“This is an expected development because the Internet economy has entered an adjustment phase this year. Although the growth rate may slow down, the demand is still very robust and offers a considerable size, and the e-commerce platforms will pursue quality and innovative development to meet the demand. market segments, ”Liu said, dismissing some Western media claims that lukewarm consumption could be a“ stigma ”to the Chinese economy.

Livestreaming remains a hotspot of the Double 12 shopping festival. Ahead of the event, China’s top live streaming stars, including Li Jiaqi, announced a list of items – snacks, food and clothing to cosmetics – which will be sold via the live broadcast. The list quickly rose to the most wanted ranks on Chinese social media platform Sina Weibo.

At this year’s annual Double 11 shopping festival, Chinese shoppers spend $ 139.1 billion, breaking last year’s record despite the impact of the coronavirus outbreak.


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