China's 'Singles' Day shopping fest muted amid technology crackdown
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 technology 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 JD.com 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 China. 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.
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