You are here: Home » Technology » News
Business Standard

China's 'Singles' Day shopping fest muted amid technology crackdown

Past galas have featured superstars such as Katy Perry and Taylor Swift and even acrobatic acts by the Cirque du Soleil.

China | Technology

AP  |  Hong Kong 

Alibaba China's largest e-commerce firm usually holds a massive gala the night before Nov. 11.

China's biggest online shopping day, known as Singles' Day on Nov. 11, is taking on a muted tone this year as regulators crack down on the industry and President Xi Jinping pushes for common prosperity.

The Singles' Day shopping festival also known as Double 11 is a massive event for China's e-commerce companies. Last year, consumers spent $74 billion on Alibaba's online shopping platforms over the 11 days of the festival. Smaller rival reported $40 billion in sales during a similar time frame.

Alibaba China's largest e-commerce firm usually holds a massive gala the night before Nov. 11.

Past galas have featured superstars such as Katy Perry and Taylor Swift and even acrobatic acts by the Cirque du Soleil.

A glitzy live counter starts ticking at midnight to tally in real time how much consumers have spent on Alibaba platforms like Taobao and Tmall. The festival is viewed as a barometer of consumption in the world's most populous country.

This year, Alibaba has toned down the hype. The Singles' Day online gala Thursday will be live-streamed due to COVID-19 outbreaks in parts of Alibaba says it is focusing on sustainability, supporting charities and inclusivity themes that align with Beijing's climate goals and Xi's calls for common prosperity that aims to curb inequality and excessive consumption.

This year's muted festivities are a perfect storm of economic, competitive and regulatory pressures, said Michael Norris, research strategy manager at Shanghai-based consultancy AgencyChina.

In terms of regulation, e-commerce platforms are coming to grips with how to align consumption extravaganzas with common prosperity' themes, he said.

Earlier this year, e-commerce platform Pinduoduo pledged to give $1.5 billion in profits to farmers to boost their incomes, while Alibaba has committed $15.5 billion to subsidies for small and medium-sized enterprises and supporting workers in the gig economy, such as delivery drivers, according to local news outlet Zhejiang News.

This year, Alibaba has also spotlighted sustainability, setting up packaging recycling points and partnering with brands to develop more eco-friendly packaging.

Customers can donate a portion of the profit from their purchases to a charity organisation or project of their choice.

The shift to emphasising sustainability comes after Alibaba was fined a record $2.8 billion for violating antitrust rules.

The government has been stepping up scrutiny of the sector and moving to curb monopolistic practices that hurt consumers' rights.

The squeeze on this year's Singles' Day sales may also reflect weaker consumer demand and shortages of some products due to shortfalls in materials and energy, as well as difficulties in moving products through snarled shipping and delivery channels.

Merchants have had a soft year so far, due to weak retail growth and decreasing consumer confidence, Norris said.

To add insult to injury, power rationing in manufacturing hubs has meant many merchants have dialled back their expectations - even if there is a burst of demand, they can't necessarily meet it.

Jacob Cooke, CEO of WPIC, a marketing firm that helps Western companies sell online in China, says ultra-deep discounts will be less commonplace than in past Singles' Day sales.

We're going to see strategies like limited edition gifts being more prevalent as opposed to merchants dumping (items) at a 90% discount . . . due to a lack of inventory, a lack of supply, he said.

Meanwhile, popular short-video platforms such as Kuaishou and Bytedance's Douyin, which have veered into e-commerce, are giving traditional e-commerce platforms like Alibaba and a run for their money.

Live-streamers on the video platforms can sell directly to shoppers through their streams.

Last year, Douyin reported 2 billion yuan ($313 million) worth of transactions just on Nov. 11.

In terms of (short-video) commerce, it's going to be huge because that's where all the eyeballs are, WPIC's Cooke said.

The Singles Day festival boosts sales of live-streaming hosts like Yang Guang, who hawks everything from clothing to home appliances on live-streams, by half, he said.

But he said prolonged festivities and complicated discount schemes can be frustrating for both shoppers and sellers.

As live-streamers, we have to think up different strategies to make it fun during every stream to keep customers interested, he said.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, November 10 2021. 13:50 IST