Quarterly earnings reports from Chinese e-commerce giants Alibaba and JD.com this week will be closely watched as barometers for the mood of consumers in the world's second-largest economy.

Both firms, which combined account for about 69% of China's e-commerce market revenue, according to DBS estimates, have faced increasing competition in recent years from low-cost platforms, such as PDD Holding's Pinduoduo and ByteDance-owned Douyin.

Chinese consumers are seeking discounts and lower-cost shopping because of their cautious attitude toward spending after the COVID-19 pandemic amid lower economic growth and the slowdown in the property sector. Alibaba and JD.com have responded to this trend but they risk lower margins by doing so.