Thursday, November 21, 2024

China’s shopping spree in spotlight as spending flags – Latest News

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BEIJING

China‘s largest online shopping bonanza wrapped up on Sunday, with analysts and investors watching for signs that consumption is rebounding in the world’s second-largest economy after recent efforts by Beijing to boost activity.

“Singles Day”, launched by tech giant Alibaba in 2009, has ballooned into an annual blockbuster period for retail, with days of discounts luring customers to the country’s online shopping platforms.

Neither firm released detailed sales figures on last year’s Singles Day for the second time running, with Alibaba saying only that it recorded growth during the period.

Sluggish domestic consumption is among the top issues now facing policymakers in China, which has struggled to achieve a full post-pandemic recovery.

Beijing has in recent weeks announced a slew of the most aggressive measures in years aimed at bolstering growth.

But many economists argue that in the absence of large-scale fiscal stimulus aimed at encouraging consumer spending, a return to the country’s robust pre-pandemic trajectory may be difficult to attain.

This year’s Singles Day could represent a major boon for retail giants as analysts watch for signs that recent measures are having an impact.

Analysts from the ING banking group said in a note last week that it expects to see “solid growth numbers” during the event, which it said “should comfortably outpace the overall consumption growth momentum.”

Singles Day 2024 “is expected to generate over 1.2 trillion yuan ($167 billion)… representing a growth of 15 percent compared to the previous year”, wrote VO2 Asia Pacific, a consultancy specialising in the digital economy.

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