SHANGHAI -- China's largest online shopping event on November 11, known as Singles' Day, is just around the corner, but there is something different about this year. The environment is focusing on the environment, because of Alibaba Group's successful sales of 49.8 billion yuan last year despite the pandemic.
As usual, Alibaba has been drumming up consumer appetite with a massive promotional campaign but a kickoff event in Shanghai showed a major change in focus. Instead of just encourageing unbridled consumerism, the online mall operator says it is urging buyers to expand their range of environmentally friendly products and shoppers to recycle old home appliances and cut wasteful consumption. It is an about face from previous campaigns.
Chinese President Xi Jinping told the U.N. General Assembly in 2020 that China aims to achieve carbon neutrality by 2060. The message was heard loud and clear as Alibaba steps up its efforts to take the party line and help the country achieve that low-carbon status.
The launch event was the subject of social welfare. Alibaba was willing to support those in need in society. It says it will make donations based on sales revenue, and asked vendors to do the same. The company will raise funds from consumers on its website and introduce a system that automatically donates part of the proceeds from certain items.
Behind Alibaba's sudden burst of social consciousness is the campaign for common prosperity, which is behind Alibaba's burst of social consciousness. Beijing wants to distribute wealth more equitably not simply through remuneration, but also taxation and donations to bridge income gaps.
Alibaba, which earns enormous revenues, is under increasing pressure to show willingness and to contribute to the cause. In September, the company announced that it will invest 100 billion yuan by 2025 to help gig workers and alleviate poverty.
The government's more tighter restrictions on the internet have given Alibaba reason to pay attention as it faces an existential crisis. More than a year ago, Alibaba has been t reading carefully since its financial unit Ant Group gave up a planned listing under pressure from local financial authorities in November last year.
It is believed that the company"s troubles were in large part due to a speech by its founder Jack Ma, made unimaginably wealthy by Alibaba, to an audience that included government officials the month before in which he said good innovation is not afraid of regulation. Ma had enjoyed public support with his candid, some might say foolhardy, remarks that helped cement his image as a charismatic business leader both at home and abroad. He had long become influential in the world, meeting with then-U. He traveled across the world in 2017 as a face of China, and promised to create 1 million jobs in the U.S.
After the speech, which was thought to have offended the Xi leadership, this life of privilege was upturned. Ma disappeared from public view as some media outlets speculated that Chinese authorities had restricted his travel abroad.
Along with its founder, Alibaba was driven into a corner. Some of Ant Group's operations have been stopped or organized under the supervision of authorities because of the cancellation of the IPO. Alibaba itself was slapped with the heaviest ever fines over antitrust law violations in April. Daniel Zhang is not able to express the company's full support for government policies when he speaks in public.
It has become necessary for Alibaba to be seen on Singles" Day when its already dominant platform is amplified further, being on the right side of government policies. The company and its management know Alibaba has to show her willingness and obedience to the party instead of focusing on its sales on the biggest shopping day of the year. It hopes that government trust will be renewed, as it wants to publicize its contributions to society.
The party leads everything, as said by Xi, North, south, east and west. The kickoff event was a day before the kickoff event, and Hong Kong media reported that Ma had left for an agriculture study tour in Spain. There are speculation that this overseas trip means government pressure on Alibaba is easing.
There is no doubt that commercial behemoth has been put in its place, and its sharp-tongued, charismatic business leader has absorbed Xi's message.