Commentary: What 11.11 Singles’ Day sales no longer say about China’s economy

Usually, 11.11, alongside the mid-year 6.18 shopping festival, has served as a key indicator for consumer trust, which has become a focal point of China’s efforts to boost its slowing market.

But in the lack of official statistics, analysts and advertising are left to view third-party data. E-commerce information firm Syntun, a common reference place, estimated that total retail sales grew 26.6 per share to 1.44 trillion renminbi this season.

HOW USEFUL IS THE BAROMETER?

On paper, this growth seems appealing. 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.

Why are there no updates on complete GMV from systems? There are a number of variables involved.

Second, there has been a shift in tone amid fierce competitors. Before the epidemic, 11.11 was a party – a chest-thumping show of dominance by comfortable e-commerce companies. &nbsp,

But the past few years have seen China’s e-commerce environment transform from a coalition ( of Alibaba and JD ) into a furious fight, with Pinduoduo, Douyin and Kuaishou then claiming 40 per share of the business. In this attrition-fighting environment, the members of JD and Alibaba have both returned to lead their businesses.