China’s “Single’s Day,” celebrated on November 11 every year, has been a subdued celebration of consumerism this year. The country’s biggest online shopping day started off slow, as regulators have recently cracked down on the technology industry.
Industry giants tone down event
The day, also known as “Double 11” is a huge event for Chinese e-commerce companies. Alibaba, China’s largest e-commerce firm, kicked off the night before November 11 with a gala featuring British actor Benedict Cumberbatch. Past events have featured pop stars such as Katy Perry, Taylor Swift, and even Cirque du Soleil acrobats.
Consumers spent $74 billion (€64 billion) on Alibaba’s online platforms last year, while smaller competitor JD.com saw $40 billion in sales during a similar time frame.
Alibaba toned down the celebrations due to COVID outbreaks in parts of China, and said they wanted to focus on sustainability, inclusivity, and supporting charities.
These aspirations are in line with President Xi Jinping’s climate goals, and his focus on reducing excessive consumption.
Low consumer demand
The low sales this year show a drop in consumer demand, and low availability of products due to shortage of materials and energy, as well as disrupted supply chains.
“In terms of regulation, e-commerce platforms are coming to grips with how to align consumption extravaganzas with ‘common prosperity’ themes,” Michael Norris, research strategy manager at AgencyChina told AP news agency.
“Merchants have had a soft year so far, due to weak retail growth and decreasing consumer confidence,” he added.
Experts said that popular short-video platforms such as Kuaishou and Bytedance’s Douyin, which have recently ventured into the e-commerce market, are giving notable competition to the industry giants.
Chinese authorities have ben tightening regulations on a number of industries, and Alibaba has been a frequent target for the past year.
tg/aw (AP, Reuters)
