What Singles Day reveals about the Chinese investment opportunity

: Last year, Singles Day, generated an estimated 1.44 trillion-yuan ($156.4 billion) worth of sales – more than Black Friday and Cyber Monday combined[1]. “Yet for many people living outside Asia, the shopping event is still relatively unknown, says JC Xue, fund manager on the Foord Asia ex-Japan Fund.”

Started in 1993 by four Chinese university students as a light-hearted “anti-Valentine’s Day” celebration – 11 November (11/11) representing the four single students – Singles Day has quickly evolved from a commemoration of selfcare into a retail phenomenon[2]. Initially an online event driven by platforms such as Alibaba and JD.com, it now extends beyond e-commerce to physical stores. Many retailers start their promotions weeks in advance, turning what was once a one-day sale into a six-week shopping season. 

For investors, Singles Day is a powerful barometer for the health of the Chinese consumer – a consumer base that now represents one of the world’s most significant drivers of economic growth. Within our Asia-tilted portfolios, including the Foord Asia ex-Japan Fund, several holdings directly benefit from this surge in consumption. Watching how consumers spend during this period also offers valuable insight into sentiment and evolving priorities among China’s vast 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 powerful, however, is not only its scale, but its breadth. Shoppers buy everything from electronics and household goods to beauty products and local brands. Foreign labels also feature prominently on major platforms like Tmall Global, but most spending remains local. While luxury sales have slowed in recent years, everyday consumption continues to grow steadily. For many families, Singles Day is now the time to make big-ticket purchases like a washing machine, for example, because the discounts can be significant. 

This level of participation reflects a structural truth about China: it has a consumer base unlike any other. 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. Housing costs are often low or even non-existent, as many younger adults receive apartments from their parents – a legacy of the one-child policy. With fewer major living expenses, a larger share of income can be directed towards consumption. 

So, despite periodic concerns about an economic slowdown or property market weakness, retail sales in China have continued to rise year after year. Even in periods when sentiment appears subdued, spending power remains resilient. 

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. There are both cultural and practical reasons for this. Social safety nets such as healthcare and pension systems remain limited, so people save to provide for their own families. For decades, property was the preferred store of wealth – around 70% of savings went into real estate – but as housing values have stabilised and new social protection mechanisms emerge, consumers are becoming more willing to spend. 

Yet none of this spending is reckless; 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. And retailers have responded accordingly, investing billions each year to secure customer loyalty. Alibaba alone spends more than $5 billion on discounts and promotions during the Singles Day period. 

From an investment perspective, Singles Day serves as an annual illustration of how China’s consumer economy continues to reshape the global landscape. 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. 

At Foord Asset Management, our investment philosophy centres around identifying long-term, sustainable growth themes supported by sound fundamentals. Having a dedicated research presence in Asia provides direct insight into the region’s most dynamic economies, including China, where consumer power remains one of the most important investment opportunities of the coming decade. 

[2] https://www.capetownetc.com/things-to-do-cape-town/the-art-of-being-alone-celebrating-yourself-this-world-singles-day/