Shopping festival in China reveals persistent weakness in domestic consumption

The Singles' Day shopping festival in China highlights ongoing challenges in boosting domestic consumption, despite significant discounts. Sales data shows only slight growth compared to last year, reflecting weak consumer confidence. Economic growth has been driven mainly by exports, while retail sales remain low. The prolonged real estate crisis has diminished household wealth perception, leading to reduced spending on non-essential items. Consumers are experiencing discount fatigue due to frequent promotional campaigns. In response, e-commerce giants are leveraging AI to enhance sales. Despite weak overall consumption, certain sectors, like health products, are seeing growth. The strong export performance may lessen the urgency for government stimulus measures.