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| China's Singles' Day loses its luster through repression |
After more than a decade of explosive growth, spurred by the economic downturn and tightening regulations, the world's largest online shopping festival, China's Double Eleven Festival, is losing its luster and growth will be more subdued in the coming years.
And e-commerce group Alibaba said its sales, or the total value of its goods, rose only 8.5% during the event.
This is the slowest growth rate, and underscores the conditions that could lead to lower profits and revenue for Chinese tech companies.
Since Alibaba founded the festival in 2009 and turned it into a global online shopping festival, the total volume of merchandise has grown at least double each year, making Cyber Monday in the United States.
Last year he extended the event from one day to 11 days. However, the state-backed Securities Daily criticized the focus on high sales as unsustainable, messy, and incompatible with China's new development path.
The document states that the focus on sales in terms of digital growth is unsustainable and closely linked to chaos.
Analysts said the poor performance this year also reflects the growing vigilance of Chinese consumers towards daily upgrades and service quality. After years of practice, brands need to understand that Singles Day does not guarantee an increase in sales.
Highlighting headwinds for Chinese tech companies
As the novel coronavirus outbreak and delivery disruptions weighed on sales, leading to China's slowest growth in a year in the third quarter, buyers also became more cautious about overall spending.
Amazing offers and promotions on site have always been the name of the event. Sales of companies such as Apple and L'Oréal also increased significantly. During this year's 11-day event, sales of these companies' products exceeded 100 million yuan ($15.7 million).
The dominance of Alibaba Group in the e-commerce market has also been weakened by competitors such as JD.com and Pinduoduo.
JD.com, which hosted an 11-day trade event, reported sales of 349.1 billion yuan. An increase of 28.6% over the previous year.
Over the past year, regulators have accused Alibaba and its e-commerce competitors of sending unsolicited promotional messages, unfairly restricting choices, and allowing merchants to treat customers with bogus discounts.
As part of this regulatory review, Alibaba Group has lowered its noise this year. He has canceled some transactions in order to follow up on the transactions that were the focus in previous years. Depends on sustainability.
However, she said a record 290,000 brands and 900 million consumers participated this year. The total amount of goods of 78 companies increased more than tenfold over the previous year, reaching more than 100 million yuan.
During the 11-day sales period, the total value of Double Eleven Group products amounted to $84.54 billion. A record number of luxury brands joined, including Max Mara and Saint Laurent, who joined for the first time.