Table of Contents
Alibaba mentioned that complete gross merchandise quantity (GMV) reached 540.3 billion yuan ($84.5 billion) by means of the primary 11 days of November, culminating within the vacation on Thursday. That’s a rise of 8.5% from a yr in the past — far decrease than the highest finish of a forecast lately given by analysts at Citi, who anticipated as a lot as a 15% enhance, or 578 billion yuan ($90 billion). It’s additionally under the low finish of that analyst forecast, some $86 billion.
This yr’s determine is a giant slowdown from the 26% soar Alibaba posted final yr, in comparison with 2019.
The Citi analysts wrote Friday that whereas this yr’s numbers had been worse than they predicted, “it was not entirely unexpected” given powerful competitors, a slowing economic system and softening client sentiment.
Since that first prevalence, Singles Day has ballooned right into a procuring frenzy noticed not simply by Alibaba, but additionally by different e-commerce corporations that supply their very own steep reductions and promotions. Deals happen over a number of days and even weeks. It has additionally unfold exterior of China, with Alibaba’s Southeast Asia subsidiary Lazada providing offers in Singapore, Malaysia, Indonesia, Thailand and Vietnam.
It’s an extremely profitable occasion, but client sentiment could also be taking a success this yr due to headwinds dealing with China’s economic system.
The price of products leaving China’s factories surged by one other record fee final month — China’s Producer Price Index jumped 13.5% in October from a yr in the past — and there at the moment are indicators that the upper prices are trickling down. China’s Consumer Price Index rose 1.5% in October from a yr in the past, double the speed of the earlier month and the quickest tempo of enhance since September 2020.
“On the one hand, the soaring input costs have significantly squeezed the profit margin for downstream manufacturers, which in turn limits the space to offer a large discount this year,” mentioned Alicia Garcia Herrero, chief economist for Asia Pacific at Natixis, a French funding financial institution. “On the other, domestic consumption is not yet back to pre-pandemic level[s] and even online retail sales, which remained relatively resilient in 2020, have decelerated.”
A sweeping authorities crackdown over personal enterprise additionally solid a shadow over this yr’s Singles Day.
Beijing final yr launched sweeping marketing campaign in opposition to a variety of industries, and e-commerce corporations have been below notably harsh scrutiny.
JD.com, Tencent, Pinduoduo, Meituan and different corporations have additionally been investigated or fined over alleged anti-competitive habits.
“The big internet platforms appear to be more cautious in marketing and promotions this year to refrain from breaching the antitrust regulations,” mentioned García Herrero from Natixis.
Alibaba mentioned they’d shift focus from pure sales figures — often annually’s headline — to sustainability and inclusiveness.
“This year’s Festival marks a new chapter for 11.11,” mentioned Chris Tung, chief advertising officer of Alibaba Group, in a press release. “We believe we must leverage the power of 11.11 to encourage sustainable development and promote inclusiveness to consumers, merchants, and partners across our ecosystem.”
The firm mentioned it would showcase energy-efficient merchandise on its providers and provides out 100 million yuan ($15.6 million) value of “green” vouchers meant to encourage folks to purchase more sustainable merchandise. It additionally wished to cut back the occasion’s carbon footprint by recycling the packaging it makes use of.
The firm additionally mentioned it wished to assist “vulnerable populations,” and its Taobao app has launched a “senior mode” choice. The new characteristic is designed to be more accessible for the aged with an up to date interface and voice-assisted expertise.
JD.com additionally introduced this yr’s Singles Day can be “the largest one where renewable energy is used, and one where [JD.com] will push for a reduced carbon footprint.”
CNN Business’ Paul R. La Monica contributed to this report.