Alibaba Group has changed its approach to this year's Singles' Day sales event, focusing on protecting merchants from excessive price wars. The move comes after Beijing warned to prevent unsustainable competitive practices in China's e-commerce sector.
With new policies designed to improve the environment for sellers, the company seeks to create a more balanced and sustainable shopping ecosystem.
Zong Bu, head of the merchant service experience at Alibaba's Taobao Group and Tmall (TTG), stressed that the goal is to eliminate what he called “inefficient involution”, a term used in China to describe diminishing returns from over-competition in saturated markets.
“We hope Singles' Day will not only be a joyful shopping festival but also a fair e-commerce ecosystem that supports the long-term growth of merchants,” Zong said at a recent media event in Hangzhou.
TTG has introduced measures to support its merchants in response to government criticism over unfair competition. These include revising the "refund without refund ” policy, which previously disadvantaged merchants, and reducing logistics costs for returns by 30% through a new service called Tuihuobao. The company has rejected over 400,000 refund requests daily in the past two months, marking a shift toward a balance between consumer rights and merchant protection.
Along with competitors JD.com and Pinduoduo, Alibaba launched their Singles' Day campaigns earlier this week. This year's event is expected to be closely watched to indicate Chinese consumer confidence following the government's stimulus efforts to revive the economy.
Alibaba has set aside at least 40 billion yuan (US$5.7 billion) to support merchants during the sales period, including subsidies for marketing and increased cross-platform traffic. With more than 300,000 brands and numerous small businesses participating, the e-commerce giant is committed to fostering a healthier and more sustainable marketplace.
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