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Final stretch of Alibaba’s Singles Day shopping festival lacks sales oomph
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A woman stands next to an advertisement for the Singles' Day sale in Beijing, on Nov. 9.Mark Schiefelbein/The Associated Press
Alibaba Group Holding BABA-N and other Chinese e-commerce firms holding Singles Day shopping events together logged a 4.7 per cent decline in sales for the first 12 hours of the final day, a research firm said.
The estimate from consultancy Syntun was in line with subdued expectations for this year’s Singles Day – the world’s biggest online shopping festival that has despite its name evolved into a multi-week event and is a key barometer of Chinese retail demand.
Analysts have forecast flat or only slight growth in sales for Alibaba, noting that Chinese consumer sentiment is at a low ebb – hit hard by the country’s stringent COVID curbs and a sharply slowing economy.
The e-commerce giant has also not held its usual celebrity-studded gala show. That’s part of an effort to play down hype around the event as Chinese President Xi Jinping increasingly emphasizes “common prosperity” – a push that seeks to eliminate growing wealth inequities and clamp down on what the Communist Party sees as excessive behaviours.
Not all the early data has pointed to sales declines. Syntun estimated a 5.7 per cent increase in gross merchandise value (GMV) during the first four days to Nov. 3 across the e-commerce platforms.
But expectations are widespread that this will be the weakest year for GMV growth ever.
Citi analysts said this week they were conservatively forecasting Alibaba’s GMV for the event to range between 545 billion yuan and 560 billion yuan ($75-billion-$77-billion), growth of 0.9 per cent to 3.6 per cent.
That compares with an 8.5 per cent rise last year and a 26 per cent jump in 2020. Before 2020, the festival was a one-day event.
But they predicted rival JD.com would fare somewhat better as it is strong in consumer electronics and home appliance offerings which are expected to remain popular.
Alibaba and JD.com did not respond to requests for comment on their overall GMV outlook. They are expected to give final tallies after midnight Friday.
Brands performing well included Apple Inc, with JD.com saying there had been 1 billion yuan in turnover for the U.S. tech firm’s products in the first minute of the event’s final sales period on Thursday evening which is marked by deeper discounts.
During the first 10 minutes of this period, turnover for 87 international beauty brands, including Estee Lauder, L’Oreal and L’Occitane, tripled from last year, it also said.
Alibaba said sales of high-tech beauty devices such as gadgets to cool and lift facial skin had surged some 5,570 per cent from last year, while carpet cleaners and smart kitchen appliances had also been selling extremely well.
Yang Zengdong, 40, a teacher in Shanghai, said she had second thoughts about participating in Singles Day at all this year, but when the final sales period started on Thursday evening, she ended up purchasing about the same amount as last year.
“I think it’s something deep in the mind of Chinese people that if you don’t buy on Singles Day, you are missing out on an opportunity,” she said.
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