On Alibaba Singles Day, Chinese language shoppers need to spend extra and switch away from American manufacturers
A screen shows Alibaba’s sales volume of more than 100 billion yuan after one hour during the Alibaba 11-11 Global Shopping Festival 2019 on November 11, 2019 in Hangzhou, China.
VCG | Visual China Group | Getty Images
E-commerce giant Alibaba’s annual Singles Day shopping event could be a boon for Chinese brands, according to a new survey.
66 percent of Chinese consumers say they will shop through domestic brands by local brands during the shopping event, held on November 11th each year. This is the third survey conducted by global consultancy AlixPartners related to the event. From September 30th to October 6th, 2,029 adult Chinese consumers were surveyed. The majority of respondents (62%) cited “patriotism” as a reason for buying local products. A year ago, 51% of respondents had a similar answer.
Overall, spending is expected to eclipse previous records as Chinese consumers recover from the stalemate put in place during the coronavirus pandemic. Singles Day 2019 generated sales of more than $ 38 billion.
39 percent of Chinese consumers plan to spend more on Singles Day this year than they did last year, according to the survey. Only 15% plan to spend less, with the majority of respondents citing the economic impact of the pandemic for their concern.
57 percent of Chinese consumers plan to spend less on American products this year, according to AlixPartners. Thirty-nine percent plan to cut spending on European brands.
“Historically, American products have done very well [brand] Attributes, “said David Garfield, global co-leader of the consumer products practice at AlixPartners and managing director of the company, in an interview.” However, Chinese consumers are increasingly feeling that they can take advantage of these benefits elsewhere, “he said.” It goes beyond geopolitical talks or impacts on the flow of trade.
While international travel largely grinds to a halt, affluent Chinese consumers rave about luxury products at home. According to the AlixPartners survey, China is the top destination among luxury consumers at 43%, followed by Japan at 30%. The United States did not make the top four.
“It’s a real step forward from the Chinese manufacturers,” said Garfield. “They are getting more and more sophisticated in marketing luxury products.”
The shift could have an impact on American brands, including those in the luxury segment, which are increasingly reliant on Chinese spending. Tourism sales fell at companies from Macy’s to Tiffany during the pandemic.
This year the 11th edition of the annual Singles Day takes place – also known as the Double 11 Shopping Festival, as it takes place on November 11th.