On Friday, Alibaba Group Holding Ltd said that sales during its annual Singles' Day shopping spree increased at the slowest rate in history, reflecting China's digital businesses' significant regulatory and supply chain hurdles.
The Chinese e-commerce behemoth claimed sales, or "gross merchandise value" (GMV), increased to 540.3 billion yuan ($84.5 billion) during its 11-day Singles' Day event that concluded on Thursday, compared to 26 percent growth last year.
Since 2009, when Alibaba created the event, sales have increased by double digits every year, dwarfing Cyber Monday in the United States. Last year, it expanded the gala into a multi-day event.
The findings come as general consumption in China slows, resulting in a more subdued version of a sales event that Alibaba previously pushed vigorously.
Analysts had predicted that Alibaba would record only slight growth in GMV this year, citing decreasing retail sales, supply constraints, power outages, and COVID-19 lockdowns.
The festival, which Alibaba expanded to 11 days last year and focused the best discounts in two discount periods, Nov. 1-3 and Nov. 11, has developed a reputation as a barometer of consumer sentiment in the world's second-largest economy.
Alibaba downplayed sales data and emphasized social welfare programs during the final hours of its Singles' Day festival on Thursday, signaling a shift in tone for the widely known event.
Rather than a rolling total of purchases as in past years, Alibaba invited viewers of a three-hour Livestream to click "like" and contribute 1 million yuan ($156,359.90) to a 200-acre (81-hectare) elephant habitat in rural southwest China.
The e-commerce behemoth has dialed back its marketing hype in the face of continuous regulatory tightening from Chinese authorities, stating that its focus this year would be sustainable growth.
Alibaba has used a night-long presentation of statistics to highlight Chinese consumers' appetite for washing machines, smartphones, and makeup. However, the company used its gala this year to promote several initiatives, including a program that supports disabled individuals in purchasing clothing and utilizing more environmentally friendly packaging.
Nonetheless, the event attracts millions of merchants and customers, with dazzling bargains and live-streamers marketing products ranging from skincare to sports shoes on Alibaba's platforms, including the Taobao and Tmall marketplaces.
By mid-day on Thursday, Alibaba reported that roughly 400 companies, including Apple Inc and L'Oreal SA, had generated more than $15 million in sales each.
The shopping event comes on the heels of a year of increasing Chinese regulatory tightening in various industries, with Alibaba being a frequent target.
The e-commerce behemoth was fined a record $2.8 billion in April for monopolistic behavior. Its founder, Jack Ma, China's most prominent entrepreneur, has withdrawn from public view following a year of criticism of Chinese regulators.
On Wednesday, Tencent Holdings reported its worst revenue growth since going public in 2004, harmed by a regulatory crackdown.
