Alibaba Group (9988. HK), the world’s largest e-commerce company, said that it will be giving steep discounts as it prepares for its annual Singles Day shopping fiesta, a sign that Chinese consumers’ trust is still at an all-time low.
According to a release, the sale starts on Tuesday but lasts for many weeks and will feature nearly 80 million goods at the lowest prices this year.
Alibaba also announced that, in addition to the customary discount coupons, select goods will be 15% less expensive this year on its Tmall marketplace for well-known brands and its Taobao site for smaller merchants.
According to Tmall, it would also compare product prices in real-time with other Chinese e-commerce sites and mark those with the best deals.
Following the easing of COVID-19 limits in the latter part of last year, China’s economy grew far more slowly than anticipated, and the employment instability of many Chinese has sparked a “value-for-money battle” among the nation’s internet platforms.
However, there have been recent indications that the economy is stabilizing. Retail sales increased by 5.5% in September, above expectations and quickening the pace of a 4.6% rise in August. Alibaba stated that Taobao and Tmall have committed an “unprecedented” level of money but did not specify how much subsidy and discount it planned to provide this year.
To aid with managing the logistics of delivery, pre-sales, during which customers may place deposits on products, will start on Tuesday. After that, purchases are made during the evening of October 31 until November 3 and Nov. 10–11.
Last year, the corporation did not disclose the event’s sales figure for the first time, merely stating that the overall sum was consistent with 2021.
As Chinese President Xi Jinping emphasizes “common prosperity”—a drive to eliminate increasing income imbalances and rein in behavior that the Communist Party views as excessive—the hype around the event has been reduced.
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