Hong Kong (CNN Business) - The day of the single, the largest annual purchasing event in the world, has begun in China and promises to generate tens of billions of dollars in sales for the largest electronic commerce companies in the country.

But the tone in this year's bonanza is much more cautious than in previous years, since companies face the growing inflation in an economy in deceleration and a regulatory offensive in its operations.

Alibaba launched the First Purchasing Festival on Soltery Day on November 11, 2009.The event, which is also known as double 11, is linked to the informal festival of China, contrary to Valentine's Day, which celebrates people who do not have a partner.The date (11.11) It was chosen because it is written with four some, that is, single.

Since that first time, the day of the single has become a shopping frenzy, not only by Alibaba, but also of other electronic commerce companies that offer their own discounts and promotions.Offers happen for several days or even weeks.It has also extended outside China, with Alibaba's subsidiary in Southeast Asia, Lada, which offers offers in Singapore, Malaysia, Indonesia, Thailand and Vietnam.

It is an incredibly lucrative event: last year, Alibaba raised about US $ 75.000 million in total sales.Your rivalJD.com said at the time that it reached US $ 41.000 million in sales.

A headache for inflation

Alibaba andJD.com can still reach new sales records this year.Citi analysts recently predicted that the total volume of gross merchandise from Alibaba would reach up to 578.000 million yuan (US $ 90.000 million) Until the first 11 days of November, an increase of 15% compared to last year.

But that growth rate would be much slower than in previous years.Last year, Alibaba registered a 26% leap in that metric compared to the previous year.Citi analysts also expectJD VG growth.com For the purchase period, it slows up to 22% or 26%, compared to 33% of last year.

Although Citi analysts wrote in a recent report that promotional campaigns have "started with a strong demand for consumers", they added that they are "cautious" in that the general feeling could be affected by a "weakening of the underlying economy".

The Chinese economy is growing to the slowest pace in a year, since energy problems, interruptions in maritime transport and the deepening of the real estate crisis make a dent in the second world economy.

Inflation, meanwhile, has increased, which threatens to erode the profit margins and the purchasing power of consumers.

The cost of the products that leave the Chinese factories rose to a record rhythm last month - the production price index of China shot 13.5%, in October, compared to a year ago - and nowThere are indications that the highest costs are lowering.The consumer price index of China rose 1.5%, in October, compared to a year ago, double the previous month and the fastest rhythm since September 2020.

"On the one hand, the increase in input costs has significantly reduced the profit margin of derived products manufacturers, which in turn limits the space to offer a great discount this year," said Alicia García Herrero, economistChief for Natixis Pacific, a French investment bank."On the other, internal consumption has not yet returned to prepaid levels and even retail sales in Líne, which remained relatively resistant in 2020, have slowed down".

Difficulties in the fight against fraud

This year's purchase event is also held under the shadow of wide government repression of private businesses.

Electronic commerce companies have not escaped that scrutiny, and in many ways they have been in the center of it.Alibaba was sanctioned earlier this year with a record fine of US $ 2.800 million for behaving as a monopoly, and the company has lost hundreds of billions of dollars in market value as Beijing reforms take shape.

JD.com, Tencent, Pinduoduo, Meituan and other companies have also been investigated or fined for alleged anti -competitive behaviors.

Many companies have also rushed to donate billions of dollars of their own benefits to government -based social causes, since President Xi Jinping makes clear his priority to redistribute wealth and achieve "common prosperity".

Alibaba has committed to donate 100.000 million yuan (US $ 15.600 million) by 2025 in support of the "common prosperity" campaign of Beijing.Pinduoduo said, in August, that he would allocate his entire benefit of the quarter of June to rural development projects in China, and that he hoped to donate a total of 10.000 million yuan (US $ 1.500 million) to these causes.JD.Com revealed, at the end of last year, a plan to "revitalize rural China" using money and its logistics infrastructure.

Singles Day has entered Beijing's spotlight.On Saturday, the State Market Regulation Administration - the country's antimonopoly regulator - prohibited electronic commerce platforms from participating in unfair practices during the Christmas purchasing period, such as "uploading the prices of the items before putting them on sale".

La semana pasada, el Ministerio de Industria y Tecnología de la Información, que supervisa la industria de Internet, convocó a Alibaba,JD.com, pinduoduo and meitu and warned them that they did not send marketing messages to consumers during the day of the single.

"The big Internet platforms seem more cautious in marketing and promotions this year to refrain from breaching antitrust regulations," said García Herrero, from Natixis.

Support for Beijing

Companies also rush to support government initiatives aimed at promoting social equality or reducing carbon emissions, two of XI's main political objectives.The weather has been a particular focus of attention, and this Chinese week even promised to increase its climatic ambitions in an agreement with the United States.However, China remains the largest coal consumer in the world and previously did not sign a statement in the COP26 in which it promised to eliminate the use of coal.

Alibaba said he would change the approach to pure sales figures, which are usually the owner of each year, for sustainability and inclusion.

"This year's festival marks a new chapter for 11.11 ", said Chris Tung, Marketing Director of Alibaba Group, in a statement."We believe that we must take advantage of the power of 11.11 to promote sustainable development and promote the inclusion of consumers, merchants and partners of our entire ecosystem ".

The company said it will show energy efficiency products in its services and will distribute 100 million yuan (US $ 15.6 million) in "green" vouchers to encourage people to buy more sustainable products.Also wants to reduce the carbon footprint of the event recycling the containers you use.

The company also said that it wants to support "vulnerable populations", and its Taobao application has introduced a "senior" mode option.The new function is designed to be more accessible to older people with an updated interface and voice -assisted technology.

JD.Com also announced that this year's single day will be "the oldest in which renewable energy is used, and in which it will boost the reduction of the carbon footprint".