Singles Day, a Chinese holiday celebrated by those without a partner, is an online retail bonanza that has dwarfed Black Friday and Cyber Monday in the United States. In just 13 years, it has become a global shopping event with revenue in excess of $25 billion, according to Techcrunch.
In 2023, the value of Apple sales fell 4% year-on-year on the Alibaba-owned e-commerce platform Douyin (known as TikTok in the West), while domestic rivals Huawei and Xiaomi posted robust increases. This was the first time Apple’s smartphone sales had declined on China Singles Day since 2015, as the value of its flagship iPhones has slumped this year amid a slowdown in the global economy and consumer confidence concerns that arose from Covid lockdowns and bubbling inflation fears.
A key driver for this is a shift in the purchasing habits of Chinese consumers. The macroeconomic headwinds that have made them more value-conscious include slowing economic growth, a subdued property market, and concerns about job security. A survey of 3,000 shoppers conducted by Bain and Company indicated that more than three-quarters of those planning to participate in this year’s Singles Day planned to spend less or maintain their current spending levels.
Analysts also note that despite ferocious discounts on popular products, many shoppers prefer to spend money on aspirational items. This is partly due to the soaring cost of living in major cities such as Beijing and Shanghai, which has weighed on consumer confidence and pushed household debt. The low-end and middle-tier Chinese cities, which account for much of the country’s population, have resisted these pressures.
Moreover, the ferocity of discounts has led to a glut of goods that consumers are finding hard to buy, further adding to their price sensitivity. The analysts said shoppers are more focused on buying consumables such as tissue paper, toothpaste, and laundry detergent, typically cheaper than higher-end cosmetics and luxury brands.
For Apple, the decline in the value of its smartphone sales during China’s Singles Day could be a sign that consumers are holding back on buying new devices as they are still upgrading to the latest iPhone models. As a result, the company’s smartphone market share may continue to stagnate, although the value of its other product offerings, including tablets and smartwatches, has been growing steadily.
However, analysts said a rebound is expected in the coming months as the new iPhones are launched, and the Chinese economy continues to grow. They added that the emergence of 5G mobile data networks will also drive demand for smartphones that support this technology. In the long term, Apple is focusing on expanding its services portfolio through its new TV+ streaming service and launching an electric car project called “Titan.” Apple shares rose 1.6% to $225.40 on Thursday in New York. The stock is up about 7% this year, lagging the gains of Samsung Electronics and Huawei Technologies, which have both rallied on more robust long-term sales expectations.
