China's largest annual online shopping event, traditionally Singles' Day (November 11), was intentionally launched a record five weeks early—starting in early-to-mid October—by major e-commerce platforms like Alibaba and JD.com. This aggressive early start is a direct response to the Chinese economy's persistent challenge of flagging consumer spending and low confidence, particularly following a weak retail performance during the Golden Week national holiday. The extended season, which transforms the event from a one-day frenzy into a month-long marathon of discounts, is designed to smooth out logistics, ease delivery bottlenecks, and leverage government stimulus aimed at boosting consumption. Platforms are heavily promoting government-backed trade-in programs for durable goods like consumer electronics and home appliances by stacking their own subsidies on top of national discounts. Chinese consumers have adopted more cautious spending habits since the Covid-19 pandemic, this spending crunch has hit high-end retailers especially hard. Fashion brands like Louis Vuitton and Burberry reported a drop in sales in recent months in China, which accounts for around a third of global luxury sales.
BBQ - Why does a spending crunch impact luxury brands the most?
