Chinese Shopping Fest Exposes Consumer Woes and Diminishes Singles' Day Appeal

The price war among China's e-commerce retailers during the Singles Day shopping event is revealing weaknesses in household consumption and raising concerns about the country's economic slowdown. As the world's largest shopping festival, Singles Day has expanded into weeks of promotions, with platforms like Alibaba's Taobao and Tmall offering discounts and rock-bottom prices. However, data suggests a slowdown in sales, and consumer confidence remains weak due to macroeconomic headwinds and value-conscious spending. The triple dip in China's property sector, local government spending cuts, high youth unemployment rates, and falling wages have contributed to a thrifty consumer mindset. The fall in consumer prices and weak manufacturing surveys indicate a loss of growth momentum for China's economy.