China’s Singles Day on November 11 is the world’s largest global 24-hour online shopping event, with over 1 billion products ordered and delivered in the last year. Originally created by the online retailer Alibaba, gross merchandise value reached over $30 billion US dollars, double that of Black Friday and Cyber Monday combined. Health products are forecasted to be the best-selling products this year given the Covid-19 Pandemic. In 2021, best-selling products included pet foods, health care, electronics, and beauty products, with over a 3,000% increase in men’s beauty products.
Chinese consumers, who already purchase about 30% of the nation’s retail purchases online, have become more reliant on e-commerce. Chinese consumers are proving to be resilient and remain a strong force not just in China, but internationally. These urban consumers are the main driver within the Chinese economy, with their spending contributing to more than 60% of national GDP growth. China’s international spending on luxury goods has increased tremendously in the past 10 years, with China accounting for 35% of all global luxury goods purchased.
Young, free-spending consumers in mid-tier and lower-tier cities are today’s growth engine in China. This vital group of consumers is not affected by slowing economic growth and rising cost of living and they have a massive impact on spending growth. A large majority of these consumers are seeking a healthier lifestyle, which brings opportunities for companies to redefine the healthcare products industry. Higher-end Chinese brands are increasingly appealing to consumers, who want to connect with their culture and see these brands as high-quality and desirable. This brings opportunities for domestic and multinational companies to appeal to the Chinese consumer.
Current trends are showing that the Chinese consumer is resilient and confident about the future, and rapid change is now the norm. If trends continue to play out, China’s private consumption is set to more than double by 2030.
