Alibaba, JD.com chase loyal big spenders as survey shows a third of Singles’ Day shoppers plan to spend less
- In the June quarter, Alibaba’s GMV for online physical goods on Taobao and Tmall declined by mid-to-single-digits year-on-year
- JD.com, which kicked off its Singles’ Day campaign last week, said consumers were becoming ‘more rational’
Chinese e-commerce giants, from Alibaba Group Holding to JD.com, are struggling to connect with high-quality consumers after an independent survey found that more than a third of Singles’ Day shoppers plan to cut spending this year.
Sales during the world’s largest shopping festival have lost momentum in recent years as China’s broad consumer spending has weakened. However, the period leading up to the official November 11 shopping date is still regarded as a key battleground among traditional players and newcomers like Douyin, the Chinese version of TikTok owned by Beijing-based ByteDance.
“Consumer loyalty can help us secure growth … we are all looking for a growth rate with certainty amid an uncertain time,” Chui Xue, president of the Industry Development and Operation Centre at Alibaba’s Taobao and Tmall platforms, said during an online media briefing on Wednesday. Alibaba owns the South China Morning Post.
The Hangzhou-based firm, whose gross merchandise value (GMV) for online physical goods on Taobao and Tmall (excluding unpaid orders) declined by mid-to-single-digits year-on-year in the June quarter, has focused on developing “VIP systems” to retain loyal customers.
On its platforms, over 40 merchants have amassed at least 10 million members, and there are close to 600 brands with a membership programme of more than 1 million consumers, according to data from Alibaba.
JD.com, which kicked off its Singles’ Day campaign last week, said in an article posted on its WeChat account that consumers were becoming “more rational”, and that it was trying to offer the best deals for its 600 million users.
The efforts come at a time when Chinese consumers are not inclined to loosen their purse strings. Singles’ Day shoppers plan to spend less during this year’s festival and spread their purchases across more retailers, according to a report published by consulting firm Bain & Company.
