Alibaba and JD failed to inspire Chinese shoppers with discounts
By ForGeeks Alibaba Group Holding Ltd. and JD.com Inc. reported sales growth during China’s most important shopping holiday, but likely lagged behind new entrants to the social media market such as ByteDance Ltd.’s Douyin in a year when consumer spending was low.
Sales rose during China’s most important shopping holiday, but likely lagged behind new entrants such as ByteDance Ltd.’s Douyin in a year when consumer spending was low.
Analysts were looking for a clue after China’s two e-commerce leaders again failed to disclose total revenue figures during «Bachelor’s Day 11.11» — an annual sales extravaganza hosted by Alibaba on Nov. 11 that became popular more than a decade ago. Historically, the day has been used as a barometer of Chinese consumer sentiment, but since companies stopped providing accurate data in the Covid era, it has become much harder to analyze.
It’s also been used as a barometer of Chinese consumer sentiment.
Goldman Sachs estimates that in the three to four weeks leading up to Nov. 11, when sellers began lowering prices, Alibaba and JD probably delivered 1-3% gross merchandise value growth. But smaller rival PDD Holdings Inc. targeting low-income and rural markets saw a 20% increase, analyst Ronald Kyung estimated. Alibaba and JD.com will report earnings this week, which will be an important signal of a recovery in domestic consumption.
Allibaba and JD.com are expected to report earnings this week.
«The slowdown in growth shows that we need to deploy large-scale economic stimulus measures strong enough to boost market confidence and stimulate the economy» — Ren Jieping, a renowned economist and former research fellow at the Development Research Center of the State Council, wrote on Monday.
«Consumers are becoming more mature and rational as they seek high value for money. Their perception of brands is also changing, and domestic brands with high value for money are becoming increasingly popular».
.
