Singles Day and Consumer Spending Offline

47 Pages Posted: 29 Jun 2020 Last revised: 30 Nov 2020

See all articles by Haiqiang Chen

Haiqiang Chen

Xiamen University - Wang Yanan Institute for studies in Economics

Wenlan Qian

National University of Singapore - NUS Business School

Date Written: November 6, 2020

Abstract

We study the spending response at offline retailers to China’s Singles Day, the world’s largest E-Commerce shopping holiday. Consumer’s credit and debit card spending at the brick-and-mortar stores increases by 10.6% on the Singles Day during 2013-2017. The increase is concentrated in physical retail goods, with no effect in categories unaffected by online shopping promotions such as dining, entertainment, and travel. The response is prevalent throughout the years and across consumer demographics and preferences. Exploiting O2O integration events that allow us to control for online-offline difference in product access and pricing, consumer offline spending experienced a strong and persistent increase on the Singles Day primarily for the shopping-experience-dependent products. Despite large(r) price promotions offered online, the offline spending (via bank cards) on the Singles Day amounts to over 60% of Alibaba’s same-day online sales in our sample period.

Keywords: Spending, Consumption, E-Commerce, Online, Offline, Redistributive Effect, Stimulus Program, Credit Card, Debit Card, Household Finance, Shopping Holiday, Singles Day, China

JEL Classification: D12, E21, E62, E64, G0, H3, H53

Suggested Citation

Chen, Haiqiang and Qian, Wenlan, Singles Day and Consumer Spending Offline (November 6, 2020). Available at SSRN: https://ssrn.com/abstract=3619582 or http://dx.doi.org/10.2139/ssrn.3619582

Haiqiang Chen

Xiamen University - Wang Yanan Institute for studies in Economics ( email )

Economics Building A307
Xiamen University
Xiamen, Fujian 361005
China

Wenlan Qian (Contact Author)

National University of Singapore - NUS Business School ( email )

15 Kent Ridge Drive
Singapore 117592, 119245
Singapore
(65) 65163015 (Phone)

HOME PAGE: http://sites.google.com/site/wenlanqian/

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