Around 3 in 4 shoppers planning to cautiously spend on Singles Day

Consumers are becoming more value-conscious for their Singles Day spending.

A total of 77% of shoppers are expected to spend less or maintain their budget for Singles Day this year, a report found.

According to an annual survey by Bain & Company, examining over 3,000 respondents from various Chinese cities, shoppers have gained a more muted and value-conscious behaviour as a response to macroeconomic downturns, shifting spending habits, and a growing retail calendar that places Singles Day against rival events.

“Interestingly, this level of caution is comparable to consumer sentiment last year where 76% of shoppers surveyed mentioned reducing or maintaining their Singles Day spend. There seems to be an element of structural slowdown about the event linked to its longevity and scale,” James Yang, Hong Kong-based Partner in Bain & Company, said.

For retailers, the priority is to understand the current trends among value-conscious consumers. The “flight to value” mindset from shoppers can be taken advantage of, as 35% of respondents claimed to be searching for better promotions and discounts, and 18% are leaning on bulk deals.

However, 48% of respondents prefer cheaper brands or private-label products.

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Another trend to take notice of is the online platforms that combine entertainment and retail. The prominence of influencers and streamers served as a strong presence from last year’s Singles Day.

In addition, the gross merchandise value (GMV) since 2021 more than doubled, courtesy of livestreams and short-form videos showing promoting items online. Tiktok’s online store is proof of this when their share in the Southeast Asian e-commerce market rose from 4.4% in 2022 to 13.2% in 2023.

“A winning formula in China will combine everyday value with inspiration, amusement, or diversion. It is important to bear in mind that there are multiple routes to these twin destinations. For instance, standing out for value-conscious shoppers might involve expanding a private label offering or providing unbeatable value,” Melanie Sanders, head of retail practice of Bain & Company - Asia Pacific, said.