If the recent flood of Singles’ Day promotions across South African stores and online retailers caught you by surprise, you’re not alone. Once confined largely to China, Singles’ Day is rapidly gaining traction worldwide – and increasingly, in South Africa.
Although most of the world’s consumers are gearing up for Black Friday and Cyber Monday, few realise that China’s Singles’ Day dwarfs both events. Last year alone, it generated an estimated ¥1.44 trillion (roughly R3.47 trillion) in sales.
What began in 1993 as a light-hearted, student-led “anti-Valentine’s Day” celebration has since evolved into the world’s largest retail event, extending beyond e-commerce platforms such as Alibaba and JD.com to include physical stores.
Celebrated annually on 11 November (11/11) – a date chosen because the four ones symbolise single individuals – Singles’ Day has grown from a simple expression of self-celebration into a multi-trillion-yuan shopping phenomenon. Many retailers now start their promotions weeks in advance, transforming what was once a one-day sale into a multi-week shopping season.
According to Foord Asset Management’s JC Xue, fund manager of the Foord Asia ex-Japan Fund, Singles’ Day is more than a commercial spectacle. It serves as a powerful barometer of Chinese consumer confidence and spending power – key indicators for investors assessing one of the world’s most important drivers of economic growth – consumer power.
“Within our Asia-tilted portfolios, including the Foord Asia ex-Japan Fund, several holdings directly benefit from this surge in consumption,” says Xue.
He notes that consumer behaviour during this period provides valuable insight into sentiment and evolving priorities among China’s expanding middle class.
“Because the event captures both discretionary and essential spending, it provides a real-time measure of consumer confidence and economic momentum in China.”
What makes Singles’ Day particularly significant, Xue explains, is the breadth of spending. Shoppers buy everything from electronics and household goods to beauty products and local brands. Although international labels are visible on platforms such as Tmall Global, most spending remains domestic. Luxury sales have slowed in recent years, but everyday consumption continues to grow steadily.
For many families, Singles’ Day has become the time to make large purchases such as household appliances, taking advantage of substantial discounts.
Xue believes this reflects a deeper truth about China’s consumer landscape: “Hundreds of millions of people now have the disposable income to spend, and they’re increasingly confident doing so. The typical Chinese consumer is also in a stronger financial position than many realise.”
He points out that many young adults have minimal housing costs because apartments are often provided by parents – a legacy of the one-child policy. With fewer major living expenses, a larger share of income can be channelled into consumption.
Despite concerns about slowing growth or property market weakness, Xue says retail sales in China have shown remarkable resilience.
“Part of this resilience lies in China’s deep-rooted savings behaviour. The average Chinese household saves far more than its counterparts in developed markets.”
He adds that cultural and practical factors underpin this tendency. Limited social safety nets – such as healthcare and pension systems – have traditionally encouraged higher savings rates. For decades, property was the preferred store of wealth, with about 70% of savings directed into real estate. As housing values stabilise and new social protection mechanisms are introduced, consumers are becoming more comfortable spending.
Yet, Xue notes, this spending remains disciplined.
“Chinese consumers are discerning and value driven. Singles’ Day is a perfect example of this, as large purchases are delayed until discounts peak. The result is a consumer base that is both powerful and pragmatic – an ideal foundation for long-term consumption-led growth.”
Retailers have taken notice. Alibaba alone reportedly spends more than $5 billion on discounts and promotions during the Singles’ Day period, underscoring the scale of competition for consumer attention.
From an investment perspective, Xue views Singles’ Day as an annual reminder of how China’s consumer economy continues to reshape global markets.
“The size and sophistication of this market make it impossible to ignore. With over a billion consumers and a rapidly expanding middle class, China offers structural growth opportunities that extend far beyond cyclical trends.”
As Singles’ Day demonstrates, the power of the consumer cannot be underestimated. In China, spending patterns not only shape company performance but also influence broader economic policy and investment flows.
Across global markets, rising consumer confidence continues to act as a catalyst for innovation, productivity, and sustainable growth – a reminder that even in a rapidly changing world, the collective choices of individuals remain one of the most powerful forces driving economies forward.
