Market confidence up ahead of annual shopping bonanza

2019-11-02 16:17:18CGTN Editor : Cheng Zizhuo ECNS App Download

China's largest e-commerce companies are running at full steam ahead of their annual litmus test in less than two weeks, which is known as Singles' Day or Double Eleven, a shopping holiday popular among young Chinese people.

Last year, the shopping spree closed with over one billion orders, with the total transaction value hitting 380 billion yuan or 53 billion U.S. dollars in one day.

Chinese young consumers are not content with just a good bargain, they want style too.

Middle-class consumers are looking to differentiate, CEO of Porsche China says. Chinese car buyers used to focus on compact models, but now they're buying more sports cars and convertibles.

Andrew Wu, LVMH group president of Greater China, also says Chinese consumers, particularly young people, are becoming more and more sensible about fashion, sophistication and taste.

Apart from luxury goods, Chinese people now have a higher demand for recreational spending from the likes of cafes, theaters and food streets. These recreational activities are favored by nine-to-five workers who want to take a break from the everyday hustle and bustle.

On festivals or sports games nights, shopping centers can be packed with people. Kang Junchao, a shopping mall manager in Beijing, says one football game night can bring 50 percent more clients and 30 percent more sales.

China's immense spending power is ready for another shopping season, with both the Double Eleven and the China International Import Expo right around the corner.

Statistics show the nation's domestic consumption has become the largest contributor to its economy during the first three quarters, standing at 60.5 percent, higher than the other key drivers like import and investment. Also, Chinese consumers spent an average of 8.3 percent more on consumer goods.

Economists say the statistics show that consumers are strongly confident that their income and the country's economy will remain stable, despite speculations of a slowdown.

Professor Liu Baocheng from the University of International Business and Economics is one of them. He says the consumers' confidence will also, in turn, encourage economic planners to continue stimulating domestic consumption.

By Ma Ke

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