Tech clampdown dampens China's 'Single's Day' shopping festwritten by Bella Palmer
The festival has gradually become a closely watched gauge of consumer sentiment in the world's second-largest economy
China on Thursday held a subdued version of its annual "Single's Day" shopping spree, shorn of the usual boasting on sales volume as the country's subdued e-commerce sector reels under a government crackdown on platforms like Alibaba.
The world's biggest shopping festival has for years been accompanied by aggressive promotions and hourly updates by Alibaba from midnight onwards detailing ever-rising sales figures that dwarf the annual GDP of many nations.
But there were no rolling tallies or triumphant comments by executives from major platforms as of Thursday morning, and state media have described a quieter event this year in the wake of Beijing's campaign to rein in Big Tech.
The so-called "Single's Day" began more than a decade ago and for years was a one-day, 24-hour event.
But Alibaba and its rivals have expanded that out to an 11-day promotion culminating on November 11, while some retailers and platforms have started offering discounts, special offers and pre-sales as early as October.
The festival has gradually become a closely watched gauge of consumer sentiment in the world's second-largest economy, but it was unclear on Thursday when any sales figures might be released.
E-commerce platforms are keeping their heads down due to the government scrutiny, which targets alleged abuse of user data and monopolistic business practices, but also appears motivated in part by wider concerns the Big Tech had become too powerful and unregulated.
Some early indicators, however, had pointed to continued robust spending, with Alibaba saying hundreds of brands had gotten off to a stronger start from November 1 compared to the previous year, while providing no figures.
The government scrutiny has rattled big players like Alibaba, Tencent, and JD, slicing billions of dollars of their equity values, but experts say the ruling party is not about to significantly hobble e-commerce.
The party is waging a long-term campaign to diversify China's economy away from an over-dependence on manufacturing, exports and government investment, toward a more market-based, consumer-driven model.
E-commerce has aided greatly in this effort, and Chinese e-commerce executives have said the pandemic has boosted online purchases further, partly by discouraging in-person shopping in crowded stores.
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