BEIJING, China’s Singles’ Day is in decline. The festival, which falls on Nov. 11, every year, has been a major online shopping event. There is less hype and a greater focus on the technology sector.
The Singles’ Day event has been the most popular online marketing event. The event is widely advertised weeks in advance, with merchants and brands offering deep discounts to lure consumers seeking bargains.
However, shoppers claim deep discounts on what’s also known as “Double Eleven”, are no longer a reality. Experts predict lower sales as the economy slows.
Alibaba, an e-commerce platform that launched the online shopping festival over a decade ago, has decided to not display a running tally on its real-time gross merchandise quantity (GMV), which is the total number of transactions it has racked up through its platform, on its website for November 11.
Chinese regulators are cracking down on technology companies and have begun investigating Alibaba and Meituan, a giant in the food delivery industry, for alleged anti-competitive activities.
Alibaba was penalized a record $2.8 million earlier this year for violating antitrust laws. Alibaba, JD.com, and Meituan were asked by the government to stop excessive marketing messages being sent to consumers in advance of Singles Day.
Last week, 16 ecommerce platform operators, some of whom are connected to Alibaba and Meituan, were summoned in Guangdong by regulators and warned about unfair competition.
The platforms are also reducing the hype surrounding marketing to align themselves with Chinese President Xi Jinping’s calls for “common prosperity,” which means curbing excesses and advocating for a more equitable distribution wealth and resources.
“The decision to not publish a live GMV count suggests that China’s major ecommerce platforms think this consumption display is inconsistent with current ‘common prosperity” themes,” stated Michael Norris from AgencyChina, a research strategy manager.
He said that while not publishing a live GMV count may be a good idea for local sensibilities, it could also be a distraction for foreign investors already worried about Alibaba’s future growth prospects.
JD.com, an online retailer, did not stream any sales figures this year. However, it held a media event on Thursday where a counter showed that shoppers had spent more than $48 billion as of Thursday afternoon local time.
It used to be common for consumers to take advantage of discounts at Singles’ Day festivals in order to stock up on their daily necessities. However, consumer habits have changed.
Due to the uncertainty caused by the pandemic, demand is lower and Singles Day is competing with other ecommerce festivals throughout the year.
“2021 will be a difficult year. Hua Wei, a Beijing resident, said that there is the pandemic, various natural disasters, slow economic growth, and the stock market is not performing well.
These make people feel a bit anxious. She said that you feel more secure if you keep your money. “I believe people are more rational when it comes down to consumption.”
Jiang Chen, another shopper, stated that he had stopped impulse shopping and bought only what he needed.
He said that he doesn’t believe it is necessary to waste energy and time in order to save money. Therefore, the items he buys are only what he needs, such as fruit and snacks.
Jiang was happy to accept a more low-key approach to the festival.
He stated, “I hope there will be less exaggerated hype in future Singles’ Day sales, and that the discounts are larger.”
Meng Xiaolu is a sales manager from Zhejiang who said that she spent the majority of her monthly shopping budget on Singles Day sales for cosmetics and clothing.
She said, “Because the pandemic I’m unable to travel and take holidays, so all that I can do it find joy in online shopping.” “I believe that shopping on Double Eleven is a common habit among young people.”
