Alibaba's 11.11 runs out of steam

Despite the fact that Alibaba's sales during its shopping festival on 11.11 have reached a new sales record, its increase has been 8.5% compared to last year, it is the lowest growth of this campaign since its first edition in 2009.

Alibaba's 11.11 shopping festival, which coincides with the celebration of Single's Day in China, has broken a new sales record reaching 530.4 billion yuan, that is, 73.74 billion euros.

However, despite the optimistic figure, it is a growth of 8.5% compared to sales on 11.11 last year, that is, significantly lower and also the lowest growth since Alibaba launched this initiative. In fact, it is the first year that this increase in sales is below 10%.

This confirms that this campaign has run out of steam, as have other promotional campaigns from other firms, such as MediaMarkt's Day Without VAT, or from other retailers. Is it something specific or do these appointments need a reinvention?

Lights and Shadows of Alibaba's 11.11

From Alibaba they are satisfied with the results of this year since on 11.11, as in the last edition, they have extended their promotional campaign over eleven days and not only on the day of November 11 as in previous years.

In addition, on this occasion more brands have also participated in previous editions, a total of 290,000 brands, which confirms the great growth since the 27 that participated in the first edition of 2009; and more than 900 million users registered in the campaign to benefit from the promotions during those days.

Easy Baked Sweet Potato (How To Bake Sweet Potatoes) https://t.co/LvytnD2DgI

— Donna Raymer Sat Sep 26 02:50:37 +0000 2020

However, the decline in sales compared to previous editions highlights, for some analysts, the strong headwinds that come from the problems that the supply chain is experiencing.

Until now, sales have been increasing by double digits every year since Alibaba launched this initiative in 2009, making it the world's largest online shopping festival ahead of US Cyber ​​Monday included.

Before this campaign began, analysts had noted that they expected Alibaba to see only lower sales growth this year due to slowing retail sales and supply shortages, however, the decline has been greater than expected. .

However, Alibaba has downplayed its sales figures and already during the last hours of its Singles Day festival, it changed the tone to urge customers to follow a three-hour live stream and click "Like". » to help raise 1 million yuan, more than $156,000, for an elephant reserve in southwestern China.

Amid ongoing regulatory tightening by Chinese authorities, Alibaba has this year toned down the tone used in its marketing towards a focus on sustainable growth.

In previous years, Alibaba promoted consumer demand for washing machines, smartphones and makeup with an all-night presentation of statistics, however, this year it has used its gala to highlight initiatives such as a program to help people with disabilities buy clothing and efforts to use more sustainable and environmentally friendly packaging.

Despite having grown less than other years, 11.11 has followed in the footsteps of the last edition, extending its promotion for eleven days and with more registered brands and consumers, which has made the event continue to be attractive.

Initial Image | CardMapr