Alibaba stays mum on Singles Day sales tally, says in line with 2021 (updated)
12/11/2022 02:20
(Repeats story from 1913 GMT, no change to text)
By Casey Hall
SHANGHAI, Nov 11 (Reuters) - Alibaba Group 9988.HK on
Friday opted not to disclose the final sales tally of its annual
Singles Day shopping festival for the first time since it
started the event in 2009, only saying the results were in line
with last year.
The e-commerce platform's growth merchandising value (GMV)
was widely predicted to post flat to low single-digit growth,
underscoring weak Chinese consumer sentiment hit by stringent
COVID-19 curbs and a sharply slowing economy.
Alibaba did not immediately respond to requests for comment
on its decision after the official 11-day sales event ended at
midnight on Nov. 11.
In a press release, it said the event had "delivered results
in line with last year's GMV performance despite macro
challenges and COVID-related impact."
GMV growth has been slowing in recent editions of 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.
Last year's 8.5% GMV rise for Alibaba's platforms was its
lowest ever growth rate, following a 26% jump in 2020. Before
2020, the festival was a one-day event.
Citi analysts said this week they were conservatively
forecasting Alibaba's GMV for the event to range from 545
billion yuan to 560 billion yuan ($75 billion to $77 billion),
with growth of 0.9% to 3.6%.
Consultancy Syntun said earlier on Friday that Alibaba and
other Chinese e-commerce firms holding Singles Day shopping
events together logged a 4.7% decline in sales for the first 12
hours of the final day.
The e-commerce giant has for over a year toned down hype
around the event as Chinese President Xi Jinping increasingly
emphasises "common prosperity" - a push that seeks to eliminate
growing wealth inequities and clamp down on what the Communist
Party sees as excessive behaviours.
It did not hold its usual celebrity-studded gala show this
year nor any in-person media events, citing the COVID-19
pandemic.
Alibaba said its Tmall marketplace offered Singles Day deals
on more than 17 million products, 3 million more than last year,
with a record-matching 290,000 brands participating.
Alibaba did not say which brands were selling well but noted
that sales of high-tech beauty devices such as gadgets to cool
and lift facial skin had surged some 5,570% from last year,
while carpet cleaners and smart kitchen appliances had been
selling extremely well.
Its rival JD.com did not publish GMV or sales growth rate
either following its event's conclusion but did say Apple Inc
AAPL.O sold over 1 billion yuan worth of 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 EL.N ,
L'Oreal OPREP.PA and L'Occitane 0973.HK , tripled from last
year, it also said.
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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Posh ice cream, craft beer in vogue as Chinese downsize their
love of luxury urn:newsml:reuters.com:*:nL8N30C1RT
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(Reporting by Casey Hall and Sophie Yu; Editing by Brenda Goh,
Edwina Gibbs, Richard Chang and Cynthia Osterman)
((Casey.Hall@thomsonreuters.com;))