JD.com, one of China's largest e-commerce companies, is facing challenges as its shares hit a record low. Banks and brokers have cut price targets and revenue growth forecasts for the firm, reflecting concerns over the slowdown in consumer spending and the overall state of China's economy. Citi Research has lowered its revenue assumption for JD.com for the third and fourth quarter, citing a muted consumption trend and intense competition. Nomura has also expressed concerns, stating that JD.com has not seen any meaningful improvement in retail and has missed out on the positives from China's stimulus policies. In response to the challenging environment, JD.com has filed a police report over online rumors maliciously linked to the company. [42667a37] [0bf1da53]
China's Singles Day, also known as 'Double 11,' is a major shopping festival that has surpassed Black Friday and Cyber Monday in sales. This year, e-commerce platforms like Alibaba and JD.com are engaging in a pricing war to attract consumers amid an economic slowdown. Chinese consumers are facing challenges such as high unemployment and stagnant wage growth, leading to reduced spending. The housing market crisis has further impacted consumer confidence. A survey shows that many Singles Day shoppers plan to spend less or maintain spending at previous levels. The hashtags 'downgraded consumption' and 'if I don't buy, I can save 100%' have become trending topics on social media. However, there is still demand for premium brands and products that enhance health, lifestyle, and self-expression. Companies like Nike, Lululemon, and Starbucks have reported strong performance in China. Overall, the pricing competition during Singles Day reflects both the intense competition between e-commerce platforms and the challenges faced by Chinese consumers. [9f722071]
Feminist consumers in China are challenging the 'pink tax,' where goods and services marketed to women are priced higher than those marketed to men. The issue has gained attention on Chinese social media platforms, with the hashtag #PinkTax attracting millions of views. Women in China are particularly frustrated with the higher cost of menstrual products and have called for the government to drop the 13% tax on these items. The pushback against the 'pink tax' coincides with the slower-than-expected recovery of China's economy since the lifting of Covid-19 restrictions. China's feminist movement has grown stronger as more women enter the workforce, and consumers are becoming more conscious of their expenditures. Some women in China feel they already bear additional costs due to gender biases and societal expectations. Two major e-commerce platforms, JD.com and Taobao, faced backlash for their annual shopping events targeted at women, with critics accusing them of manipulating women into spending money. Despite the pushback, some merchants have reported slower sales growth for products aimed at women. Feminist consumers in China are determined to support brands that are fair and respectful to women and believe that their efforts can bring about change. [f0dd1269]
The $500 billion livestream shopping market in China, which was created during the pandemic, is now starting to mature. Influencers, brands, and retailers have flocked to apps like WeChat and Douyin to sell a wide range of products. Livestream shopping took off during the pandemic when people were unable to go to physical stores. Initially, influencers dominated the livestreaming space, but later, brands and companies started their own channels. The industry has become crowded, and the overall economy in China has slowed down, leading to a decline in impulsive online shopping. Livestreamers are finding their job more difficult, as they have to talk for hours, act passionate, and be persuasive. The profession has matured, and the dream of getting rich overnight has burst. American consumers may take time to adopt livestream shopping habits, as retailers in Western countries have not yet developed the practice of lowering prices for livestreams. The future of livestream shopping in the US remains uncertain. [c16492be]
The buzz around China's Singles' Day sales event seems to have faded this year as consumers choose not to spend as much as before. The event, which marks its 15th year, is experiencing fatigue rather than excitement. The decline in consumer enthusiasm is reflected in the decrease in peak searches and social media discussions about the sales. A survey shows that only 53% of shoppers were excited about Singles' Day, compared to 76% in the previous year. E-commerce platforms attempted to hype up the event through price wars, but this put pressure on merchants. Alibaba and JD.com did not disclose overall sales figures for the event. Weak domestic demand is also reflected in macroeconomic data, such as the decline in the Consumer-Price Index and the Producer Price Index. The rise of 'reverse consumption' and 'seniors-tag-along consumption' indicates a declining economy and high unemployment affecting young consumers. The phenomenon of involution, where industries compete for already scarce resources, has also impacted the consumer market. The decline in Singles' Day sales highlights the need to stimulate domestic demand beyond e-commerce platforms. [b7260de1]