A long advertising campaign, a gala evening with Chinese stars, and a few international celebrities, like the English actor Benedict Cumberbatch: before the start of the now famous “Singles Day”, everything looked almost normal. Until midnight: because the 2021 edition of the biggest sales campaign in the world organized by Alibaba overlooked one of the elements that kept the excitement alive: the real-time display of sales figures during the 24 hours of the event. In previous years, billions accumulated over the hours, to beat the record set in the previous edition. But the campaign to regulate digital companies, launched a year ago in China, has changed the situation: the time is no longer for celebrating the excesses of capitalism. The first victim of this campaign, Alibaba is keeping a low profile.
Alibaba had announced the color with the few gifts sent with its communication to analysts: a recycled paper notebook, a reusable bag, a cup painted by disabled children… Let it be said, Alibaba is a virtuous company. Rather than celebrating ever-higher sales figures, China’s number one e-commerce company is highlighting its social and environmental responsibility efforts. According to the company, the effort goes beyond “goodies”: it highlights the possibilities of recycling for the packaging of the hundreds of millions of packages sent in recent days, the putting online of a version suitable for the elderly of Taobao, its flagship platform, and 100 million yuan in coupons geared towards the purchase of “green” products. On September 2, Alibaba had pledged 100 billion yuan (14 billion euros) for projects related to the ” common prosperity “, Slogan announced a little earlier by Chinese President Xi Jinping, which covers redistribution efforts.
“This risks frightening foreign investors”
In 2020, Alibaba spread the event over eleven days to reduce pressure on sellers and logistics. Enough to achieve 498 billion yuan (64.5 billion euros) in sales, for Alibaba’s platforms alone, and more than 770 billion with JD. com, China’s number two in e-commerce. But the festival had coincided with the cancellation in extremis the IPO of Ant Group, the financial subsidiary of Alibaba. Since then, the Chinese authorities have stepped up regulations, investigations, and fines against Chinese digital giants. In April, Alibaba was fined a record 18.2 billion yuan for abuse of dominance, including forcing exclusivity on many merchants.
” The decision not to publish live sales figures suggests that the main e-commerce platforms believe that this display of consumption would be inappropriate in view of the theme of “common prosperity” currently being promoted. Says Michael Norris, chief strategy officer for Agency China, a consulting firm in Shanghai. This choice may appease local sensitivities, but without careful management it risks scaring foreign investors, already worried about Alibaba’s growth potential. “. The group is due to release its third quarter results on November 18, two weeks later than usual. Alibaba has lost 39% of its market value since a peak in February.