The Chinese online commerce giant has chosen not to publish in real time the sales figures of its consumer festival, a way to make low profile while the power has initiated a resumption of the digital sector .
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A long advertising campaign, a gala evening with Chinese stars, and some international celebrities, like the English actor Benedict Cumberbatch: before the kickoff of the now famous “single day of the singles”, everything had almost had the Normal air. Until midnight: because the 2021 edition of the world’s largest sales campaign organized by Alibaba has stuck on one of the elements that had the excitement: real-time display of sales figures during The 24 hours of the event. The previous years, the billions accumulated over the hours, to break the record established the previous edition. But the digital business regulatory campaign, launched a year ago in China has changed the game: the time is no longer at the celebration of the excesses of capitalism. First victim of this campaign, Alibaba is 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 children with disabilities … that it is said, Alibaba is a virtuous company. Rather than celebrating the ever higher sales figures, the number one Chinese online commerce highlights its social and environmental responsibility efforts. According to the company, the effort goes beyond the “goodies”: it highlights the possibilities of recycling for the packaging of the hundreds of millions of packets sent in recent days, the online release of a version Suitable for the elderly of Taobao, its flagship platform, and 100 million yuan coupons oriented towards the purchase of “green” products. On September 2, Alibaba had promised 100 billion yuan (14 billion euros) for projects related to the “Common Prosperity”, slogan announced a little earlier by Chinese President Xi Jinping, who covers redistribution efforts.
“It may scare foreign investors”
In 2020, Alibaba had spread the event on eleven days to reduce pressure on sellers and logistics. What to achieve 498 billion yuan (64.5 billion euros) sales, for the only platforms of Alibaba, and more than 770 billion with JD. com , the number two Chinese online commerce. But the festival coincided with the annulment in extremis of the IPO of ANT GROUP, the financial subsidiary of Alibaba. Since then, the Chinese authorities have multiplied regulations, surveys, and fines against the Chinese digital giants. In April, Alibaba had a record fine of 18.2 billion yuan for abuse of dominant position, especially for imposing exclusivity to many merchants.
“The decision not to publish live sales figures suggest that the main e-commerce platforms believe that this consumption display would be inappropriate in view of the theme of” Common Prosperity “promoted now”, says Michael Norris, head of the strategy for Agency China, a consulting firm in Shanghai. This choice can soothe local sensitivities, but without careful management, it may scare foreign investors, already worried about Alibaba’s growth potential. The Group must publish its third quarter results on 18 November, two weeks more late than usual. Alibaba lost 39% of its market value from a peak in February.