China shopping festival reveals weakness in domestic consumption amid low family confidence

Singles' Day, China's largest shopping festival, demonstrates difficulties in stimulating demand despite discounts offered by digital platforms, which is linked to low public confidence.

This festival, known as '11.11' and celebrated on November 11, serves as an important indicator of consumer activity in the world's second-largest economy, although advertising campaigns begin long before this date.

According to the analytical platform Syntun, total sales up to October 31st only slightly exceeded one billion yuan (about 130 billion euros), comparable to last year's figures. In 2025, total sales reached a record nearly 1.7 billion yuan (230 billion euros), aided by the extension of promotional activities.

Max Zenglein, Senior Economist for Asia-Pacific at The Conference Board research center, stated that 'optimism regarding the recovery of domestic demand has faded.' He added that improvements in confidence have been 'repeatedly short-lived.'

China's economy grew by 4.6% in the first nine months of the year, mainly driven by exports, while retail sales increased by only 1.1%, according to official data. The ongoing real estate crisis continues to negatively affect household confidence. Housing prices have dropped by approximately 20% or more from their 2021 peak, reducing the sense of well-being among owners.

In Foshan, Guangdong province, 24-year-old Gabby Liang reported cutting back on online purchases, especially non-essential items. 'Last year, during Singles' Day, I bought a lot of skincare products. But this year I hope to buy less,' she told the Associated Press.

For Yalin Jiang, founder of the consulting firm ApertureChina, consumers are facing growing 'discount fatigue' due to the increase in promotional activities throughout the year. She explained: 'Previously, people waited for the biggest discounts of the year. But that is no longer happening because the festival has expanded to many platforms and lasts for a whole month.'

In response to slowing consumption, Chinese e-commerce giants are implementing artificial intelligence (AI) to boost sales. Alibaba integrated its AI model Qwen on Taobao and Tmall platforms to simplify ordering and personalize product recommendations.

The weakness in domestic demand contrasts with the dynamism of Chinese exports, which grew by 35% in October, supported by technology goods including semiconductors and electric vehicles. Despite the overall decline in consumption, some segments continue to grow, particularly health and wellness-related products. According to the consulting firm WPIC Marketing + Technologies, online sales of imported fish oil rose by almost 43% over the 12 months ending in September.

Zenglein believes that strong export growth reduces pressure on Chinese authorities to take more decisive action to stimulate consumption. He noted: 'As long as China continues to pursue its industrial and technological ambitions, political figures will have little incentive to fundamentally rebalance the economy towards household demand.'

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cgtn.comNovember 4, 14:30

China International Import Expo (CIIE) transforms from a trade platform to the foundation of daily life and industry

A small bazaar, featuring products from over twenty countries and regions, is located on the fourth floor of a shopping center on Nanjing East Road, Shanghai's busiest pedestrian street. At the entrance, there is a free tasting area where visitors can sample Iranian saffron, Italian canned tuna, and coffee from Timor-Leste. Buyers can examine goods before purchasing; for instance, a bottle of Irish tonic water costs 9.9 yuan (approximately $1.49). One pensioner, who previously worked at a research institute, visits this spot almost every week to buy yogurt from New Zealand.

A buyer named Ma regularly stocks up on Australian rapeseed oil when their home supply runs out. Nearly all these items first appeared at the China International Import Expo (CIIE), which took place across the city in the National Exhibition and Convention Center—a vast four-leaf clover-shaped complex.

After nine sessions, this exhibition, which became the first national exposition dedicated to global imports, is measured not so much by square meters as by what ends up on tables in Shanghai. Products that debuted on the booths continue to appear in regular stores, a process the expo calls 'transforming exhibitions into goods.'

From Booth to Shelf

Consider the fresh produce section. In the first nine months of this year, Norway supplied China with 98,376 tons of salmon, a 42% increase from the previous year. According to the Norwegian Fishery Council, this volume is enough to make China the second-largest salmon market. Chile also contributed by exporting more than nine out of every ten tons from approximately 550,000 tons of cherries shipped last season, which arrived in just 23 days by sea. This volume has impacted prices, with wholesale prices dropping to a quarter.

Medicine followed a similar but quieter path. Boston Scientific, which first exhibited at the expo in 2019, has since received Chinese approval for 24 products it debuted at the event. Its intravascular ultrasound system, originally purely imported, is now manufactured in the Lingang area of Shanghai and subsequently sent to other markets. In 2025, Sanofi presented aficamten, a drug for heart disease, at its world debut at the expo, receiving Chinese approval the following month, ahead of Europe and the United States.

This year, Sanofi will showcase the world debut of rovadicitinib—a new Class 1 drug developed in China for treating myelofibrosis, a rare bone marrow disorder. Class 1 is China's category for a drug that has never been sold anywhere else.

From Goods to Industry

What China imports is also changing. According to the General Administration of Customs, imports grew by 22.3% in the first quarter of this year, outpacing exports for seven consecutive months. In September, imports exceeded 2 trillion yuan for the first time in a single month. A significant portion of this volume is related to factory procurement—only memory component imports increased by 150% as enterprises stockpile parts for production and sales of their own products.

For foreign suppliers, the expo has become a channel into the production chain, not just a retail shelf. Jungheinrich, a German intralogistics company, participates in every session. Over the years, the annual growth of its automated warehousing projects has risen from less than 20% to over 50%, and the share of local components in its equipment has increased from 51% to 80%. Equipment designed at the company's plant in Qingpu is now supplied to over 40 countries through the Jungheinrich network, and its division in Hongqiao has become the group's second global software center and a global OEM center.

Schneider Electric, another participant in the nine sessions, considers China its second-largest market and one of its four research bases. At the end of last month, the company began production in the Xianyang industrial park in Xi'an—its largest medium-voltage electrical equipment manufacturing base, which, once fully operational, will allow for a 60% capacity increase.

A Bigger Table

When the doors open on Thursday, the ninth CIIE will be the largest of all previous editions, adhering to the long-standing theme of 'New Era, Shared Future.' Approximately 162 countries, regions, and international organizations are participating; Canada and Sri Lanka are guest of honor, while Moldova, Romania, and UNDP are participating for the first time.

In terms of business, a record number of 4,142 foreign companies have registered, and for the first time, over 300 of the 500 largest global companies and industry leaders will be present at the expo. More than 480 products will debut in the global, Asian, or Chinese markets. The total exhibition area has exceeded 440,000 square meters for the first time. Among participants, American companies have reserved over 50,000 square meters, securing the largest exhibition space for the eighth consecutive year.

Running parallel to the CIIE is a key component of the expo—the International Economic Forum in Hongqiao, held under the slogan 'Stability and Cooperation: Jointly Building an Open World Economy.'