China's Singles' Day records slow sale growth as China's regulators tighten cont...

China's Singles' Day records slow sale growth as China's regulators tighten control over exaggerated marketing campaign of e-commerce platforms

China's Singles' Day records slow sale growth as China's regulators tighten control over exaggerated marketing campaign of e-commerce platforms

November 12, 2021 10:30 pm

China’s Singles' day shopping festival recorded a slow growth this year after major Chinese e-commerce platforms like Alibaba, JD adopted low-profile marketing campaign amid heighted regulatory scrutiny in China.

Detail:

Alibaba reported a total gross merchandise value of CNY540.3 billion during the 11-day campaign this year, representing year-over-year growth of 8.45 percent. This is the first single-digit GMV growth since Alibaba created Singles’ Day in 2009.

While rival JD.com recorded a total transaction volume of CNY349.1 billion this year, up 28.6 year-over-year. The 28 percent annual growth rate was lower than 32.8 percent of last year.

After 12 years of double-digit percentage annual growth, Singles' day lost some growth momentum this year as China’s regulators are tightening control over exaggerated marketing campaign for the shopping festival.

The Guangdong Administration for Market Regulation summoned Alibaba, Meituan's group buying unit, Viopshop along with 14 other major e-commerce platform for their unfair business practices ahead of the double 11 shopping festival.

The regulators warned the e-commerce platforms to rectify various irregularities and unfair including selling fake products, false advertising and poor after-sales services

Context:

Alibaba’s 11.11 shopping festival began in 2009 from just 27 merchants to participate the event to raise their brand awareness and promote their brands online. The shopping festival evolved and grew rapidly since then, more than 250,000 brands participated in 11.11 shopping festival this year, of which 31,000 are overseas brands.

The shopping festival is not just a big shopping day for huge discounts on everything from daily necessities to luxury items, but also it has become an annual global entertainment gala.

Last year, the gala featured internal stars such as U.S. singer Katy Perry, who sang three songs at Alibaba’s 11.11 event via livestream, as well as famous pianist Lang Lang and Chinese pop stars Jackson Yee.

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