A display screen reveals Alibaba’s gross sales quantity exceeding 100 billion yuan after one hour throughout 2019 Alibaba 11.11 Global Shopping Festival on November 11, 2019 in Hangzhou, China.
VCG | Visual China Group | Getty Images
The e-commerce large Alibaba‘s annual Singles Day buying occasion could possibly be a boon for Chinese brands, in accordance to a brand new survey.
Sixty-six p.c of Chinese consumers say they will be searching for home brands over overseas labels throughout the buying occasion, which is held on Nov. 11 annually. This is international consulting agency AlixPartners’ third survey tied to the occasion. It polled 2,029 grownup Chinese consumers from Sept. 30 to Oct. 6. The majority surveyed, or 62%, cited “patriotism” as their motive for getting native. A 12 months in the past, 51% of these polled had the same reply.
Spending general is anticipated to eclipse earlier data, as Chinese consumers rebound from the shutdowns put in place throughout the coronavirus pandemic. Singles Day 2019 drew greater than $38 billion in gross sales.
Thirty-nine p.c of Chinese consumers plan to spend extra on Singles Day this 12 months in contrast with final, the survey discovered. Only 15% plan to spend much less, it mentioned, with nearly all of these folks citing the pandemic’s affect on the economic system for his or her concern.
Fifty-seven p.c of Chinese consumers plan to spend much less cash on American merchandise this 12 months, AlixPartners discovered. Thirty-nine p.c plan to cull spending on European brands.
“Historically, American products scored very highly on [brand] attributes,” David Garfield, international co-leader of the buyer merchandise observe at AlixPartners and a managing director on the agency, mentioned in an interview. But, “Chinese consumers increasingly are feeling like they can get these benefits elsewhere,” he mentioned. “It goes beyond geopolitical talk or any trade flow impact.”
Meanwhile, with worldwide journey largely at a standstill, prosperous Chinese consumers are splurging on luxurious merchandise at dwelling. China is the highest vacation spot amongst consumers for luxurious items, at 43%, in accordance to AlixPartners’ survey, adopted by Japan, at 30%. The United States didn’t make the highest 4.
“It’s a genuine advancement on the part of Chinese manufacturers,” mentioned Garfield. “They’re getting more sophisticated in their marketing of luxury products.”
The shift might have implications for American brands, together with these within the luxurious house, which have grown extra reliant on Chinese spending. Tourism gross sales have plummeted throughout the pandemic at corporations ranging from Macy’s to Tiffany.
This 12 months will mark the 11th version of the annual Singles Day occasion — additionally referred to as the Double 11 buying pageant as a result of it falls on Nov. 11.