Why are Chinese consumers tuning out of annual online shopping festival?
Hangzhou bank employee Xiao Na says she has no plan to buy anything during China’s ongoing Singles’ Day shopping festival, the world’s largest online retail promotion. “When I think about hunting around for things to buy just so I can use all kinds of coupons, the money I save is dwarfed by what I’ve lost in the stock market,” the 37-year-old said. “Stocks are falling, home values continue to…
Chinese consumers are showing less enthusiasm for the country's annual online shopping festival, also known as Singles' Day, as they prioritize saving money over indulging in the world's largest online retail promotion. According to Xiao Na, a bank employee in Hangzhou, the ongoing decline in stock market values, falling home prices, and stagnant salaries have led her to decide against making any purchases during the event.
She believes that keeping her cash reserves intact is a wiser financial strategy given the deteriorating economic conditions. This sentiment is shared by many other Chinese consumers who are cutting back on spending during the festival as a result of the ongoing stock market slump and prolonged decline in property values. These factors have eroded household wealth, prompting many families to prioritize debt reduction and deleveraging over luxury purchases.
The tech-focused ChiNext Index experienced its steepest quarterly decline on record, plummeting nearly 28 percent, while the Shanghai Composite Index posted more moderate losses amid a sharp unwinding in growth and technology stocks. Despite these economic challenges, total retail sales in China have remained subdued this year, indicating that consumer spending is not rebounding to pre-pandemic levels.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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