Consumers search for value to define Singles’ Day 2023: report

Around 62% of respondents will spend $410 for the biggest shopping event in China.

The 2023 Singles’ Day sale is poised to become the biggest shopping event of the year in China, with consumers gaining more confidence compared to last year, a report found.

According to global consulting firm AlixPartners, almost half of respondents will spend more this year, and 62% will spend an average of $410 (CNY3,000), representing an 11% increase from 2022.

For the fifteenth year of the marquee shopping event, consumer behaviour reverts to “normal” levels, as proven by the 18% year-on-year (YoY) increase in total spending. However, the return came along with a different perspective on purchasing products.

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The report found that rational consumption weighs more than flashy promotion in the search for quality. Consumers seek for value in product functionality, quality, and safety at the most permissible price. This encourages savvy buyers to search and compare products from different shopping channels and platforms.

However, one prominent difference is that local brands have more leverage than foreign brands with 66% of respondents planning to spend on China-made products. Another is that the silver economy serves a critical figure in Singles’ Day as more retailers present a varied marketing approach for different types of senior shoppers.

“We are seeing stronger sentiment and spending, evidenced by the 18% increase in total spending compared to 2022, more than three times last year’s growth. However, brands need to be more intentional and targeted in order to differentiate and to generate the greatest returns this Singles’ Day,” Britton Russell, Partner and Greater China Lead for Consumer & Retail Practice at AlixPartners, said.