SHANGHAI, OCTOBER 23 – E-commerce giant Alibaba Group is gearing up for its annual Singles Day shopping extravaganza by promising significant discounts on an extensive range of products, signaling concerns about the state of Chinese consumer confidence.
Singles Day, commencing on Tuesday and now extending over several weeks despite its name, will offer more than 80 million products at their most competitive prices of the year, according to an official statement by Alibaba. Additionally, the company revealed that this year, its Tmall marketplace for established brands and its Taobao site for smaller retailers will provide a 15% price reduction for select products in addition to the customary discount coupons.
Tmall will also introduce a real-time price comparison feature with other e-commerce platforms in China and label products with the lowest price, enhancing the value proposition for consumers.
The Chinese economy experienced slower-than-expected growth after the relaxation of COVID-19 restrictions late last year. Job insecurity for many Chinese citizens led to increased emphasis on value-for-money purchases across online platforms. Nevertheless, recent indicators suggest that the economy is stabilizing, with retail sales growing by 5.5% in September, exceeding expectations and outpacing the 4.6% increase in August.
Alibaba did not disclose the exact amount of subsidies and coupons it plans to provide this year, but it noted that both Taobao and Tmall have committed an “unprecedented” level of investment for the event. The Singles Day shopping event will feature presales, enabling consumers to make deposits on items, with purchases occurring during two periods: from the evening of October 31 to November 3 and on November 10-11. This phased approach assists in managing the logistics of deliveries.
Alibaba has been progressively reducing the hype surrounding the event as Chinese President Xi Jinping underscores “common prosperity.” This initiative aims to reduce wealth disparities and restrict what the Communist Party views as excessive behavior among affluent individuals. Last year, the company refrained from disclosing the sales total for the event, revealing only that it was consistent with 2021 figures.