Traditionally, 11.11, alongside the mid-year 6.18 shopping festival, has served as a key barometer for consumer confidence, which has become a focal point of China’s efforts to boost its slowing economy.
But in the absence of official figures, analysts and media are left to interpret third-party data. E-commerce data firm Syntun, a popular reference point, estimated that overall ecommerce sales grew 26.6 per cent to 1.44 trillion yuan this year.
HOW USEFUL IS THE BAROMETER?
This growth sounds promising on paper. During my visits to Hangzhou (home to Alibaba) and Yiwu (one of China’s largest e-commerce hubs) during 11.11, it was evident that e-commerce participants – from merchants to logistics operators – took the event seriously, striving to outdo competitors.
So, why the silence from platforms about total GMV? Several factors are at play.
First, there has been a shift in tone amid fierce competition. Before the pandemic, 11.11 was a celebration – a chest-thumping display of dominance by confident e-commerce giants.
But the past few years have seen China’s e-commerce landscape morph from a duopoly (of Alibaba and JD) into a fierce battleground, with Pinduoduo, Douyin and Kuaishou now claiming 40 per cent of the market. Founders of both Alibaba and JD have returned to steer their companies amid this war of attrition.
