Alibaba breaks its own record Able to generate record sales on “Singles’ Day” 11.11 But it’s a value that’s significantly less than the target. Amid China’s economic slowdown and moving forward with the management of major Chinese government tech companies for ‘security’ reasons.
‘Alibaba’, e-commerce giant from China, breaks its own record by generating revenue from merchandise sales (GMV) from its 11.11 ‘Singles Day’ campaign, which is the biggest shopping day ever. In the world, more than 84.5 billion US dollars, or about 2.77 trillion baht, was the revenue from the sale of products on the platform between 1-11 November last. An increase of about 8.5% from 2020
Increased income but low growth rate
However, the huge revenue increase was significantly less than the amount anticipated. Citi analysts predict that this year Alibaba will be able to earn about 15% more than last year’s 11.11 campaign, totaling $90 billion. quite And even less compared to the 11.11 campaign revenue growth in 2020, a 26% increase from 2019.
Citi analysts said the incident wasn’t too surprising. The reason for this is because of the fierce competition in the e-commerce market. China’s economic growth is still slowing. and weakening internal consumption demand
CNN reports that its rising competitor, JD.com, generated impressive gross merchandise sales (GMV) during the same period. The 11.11 campaign earned more than $54.6 billion, or about 1.79 trillion baht, an increase of 28.6% from the previous year, although it was 33% less than the previous year.
GDP Slowdown Factors
even in the past year China will be the only large economies to survive the hard years of the COVID-19 pandemic. Without facing a recession, China’s GDP this year has not escaped the worry. Because in the third quarter, China’s GDP grew only 4.5%, which is significantly lower than the 2.9% growth in the second quarter, due to the impact on the shipping industry. energy shortage crisis and the real estate price crisis
In addition, consumers in China are also faced with an escalating inflation situation. which directly affects the purchasing power of people. While the purchasing power and demand are still far from the pre-Covid situation. And the rise in industrial production costs has caused business profits to shrink.
Chinese government tightens control on technology companies
The Chinese government’s strict control and inspection of various industries This is another reason why the 11.11 sales campaign this year was not as successful as it should have been. In the past year, the Beijing government has taken serious business investigations. The e-commerce business has been particularly eye-catching as well. with reasons for managing monopoly on the market data security and security reasons
One of the incidents was that Alibaba had to pay fines of up to 91,770 million baht because the Chinese government saw “monopoly” behavior, while other giants such as JD.com, Tencent, Pinduoduo, Meituan, etc. have been investigated by the government. seriously china Many companies have been fined huge sums for their behavior. “Anti-competitive”
Alibaba decided to pledge $15.6 billion to the Chinese government by 2025 to support its ‘Common Prosperity’ policy.
Meanwhile, Pinduoduo made a commitment last month. Last August, all revenue from the second quarter will be donated to rural development projects in China. It is ready to donate about $1.5 billion for the same purpose. JD.com announced its goals for rural development in China last year. by providing investments and using the company’s transportation infrastructure to develop areas, etc.
Not just the development of rural areas. Major companies under the Chinese government have also expressed their desire to assist the Chinese government in meeting its environmental goals. One of them is to cooperate in reducing greenhouse gas emissions. especially when China and the United States The two leaders, Joe Biden and Xi Jinping, are scheduled to have a teleconference this week.
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