US, China online shopping fatigue as Cyber Week results disappointing

NEW YORK SHANGHAI: Online shopping fatigue in the US and China set in the United States and China as retailers in both countries posted mostly lackluster results during Cyber Week and Singles Day, two of the world's biggest promotional events, according to the latest data.

US shoppers spent $35.27 billion online during Cyber Week, the period from Thanksgiving to Cyber Monday. That's a 4 per cent gain over last year, at a time when US inflation is more than 7 per cent.

The modest pickup beat the paltry 2.9 per cent increase in sales during China's Singles Day, an 11 day shopping festival that ended Nov 11, hosted by Alibaba and other Chinese e-commerce firms.

Singles Day posted growth rates of around 34 per cent annually on average, versus Cyber Week's 17 per cent average gain, according to data from consultancy Bain and from Adobe Analytics. Adobe Analytics measures e-commerce performance by analysing purchases at 85 per cent of the top 100 internet retailers in the United States.

Deborah Weinswig, founder and CEO at Coresight Research, said the US results were a Christmas miracle, given that retailers began to dangle early holiday discounts in October. Weinswig said that less travel among Chinese has changed what and how much they spend.

According to Syntun, Chinese shoppers bought vitamins, supplements and products for their pets' health, spending 934 billion yuan $130.51 billion during Singles Day. Sales for Alibaba, China's biggest e-commerce player, were flat, while newer, short-video e-commerce platforms such as Douyin and Kuaishou showed some sales growth, according to Citi analysts.

In the United States, deep discounts gave shoppers the opportunity to buy Pokemon toys, TVs, footwear and air fryers, spending money online and in stores this year during the key Black Friday and Cyber Monday shopping periods. Weinswig said retailers focused their promos and discounts on consumer electronics and clothing.

Jane Hali, CEO of retail research firm Jane Hali Associates, said she expects flat sales for the US holidays, after adjusting for the impact of inflation.

Cyber Week includes Black Friday, a social event with families getting out of the house together to search for deals on holiday gifts. Alexander Chernev, a professor of marketing at the Kellogg School of Management, said that many people will buy something on Black Friday to mail it to relatives before Christmas.

Chernev said Singles Day is focused on instant delivery of items purchased online.

Singles Day was an unofficial Chinese holiday on November 11, 11-11 to celebrate people who were not in relationships. In 2009, e-commerce giant Alibaba co-opted to win over online shoppers with discounts and promotions.

These days brands use Singles Day to clear inventory and experiment with new products. It has become less important for Alibaba's bottom line.

With the COVID 19 epidemic still raging in China, it won't be fair to compare Singles Day with Cyber Week, as Americans are shopping with fewer restrictions, Chernev said.

Cyber Week is only part of the US holiday season. Hali said that the Cyber week does not make the holiday season.