China is one of the largest e-commerce markets in the world. According to the data of market research company Insider Intelligence, in 2022, about 1 billion China consumers shopped through e-commerce channels, accounting for 45.3% of all online retail sales. The year 2023 will continue to be characterized by growth and new development.
Ribaba Group conducted an internal analysis and determined the following trends of e-commerce in China this year:
China consumers are attracted to the outdoors: travel restrictions and the Beijing Winter Olympics have promoted the outdoor craze-ski resorts and campsites are becoming more and more popular. During the period from January 31 to February 4, 2022, the sales of Tmall’s winter sports equipment in Alibaba’s e-commerce market increased by 300%, of which skiing equipment increased by 180%. Compared with the same period last year, the sales of outdoor equipment and camping doubled in March. “In the coming year, we expect the number of brands in China market to double and go digital to meet the needs of outdoor enthusiasts,” the company’s blog shows.
China people’s attitude towards pets is changing. Everyone likes the furry touch of pets, and they will increase their investment in digital products such as customized pet clothes and smart pet feeders. During the Global Shopping Festival on November 11th, 2022, the commodity value of Tmall pet food brand increased by three digits year on year.
Alibaba’s ecosystem now also allows consumers to explore brands in a virtual way, browse virtual stores with personalized avatars, try on clothes and buy collectibles. Since the end of 2021, nearly 20 luxury brands have released 37 digital series products on Alibaba Tmall Luxury Pavilion, which have been purchased by thousands of customers. The company predicts: “In the next year, we expect that more retailers will use Metauniverse to attract consumers and create products than before. For example, British luxury brand Burberry will launch a private digital salon to buy trench coats at Tmall Mall.”
Generation Z consumers are those who were born from 1996 to 2010, and will account for about 15% of China’s population by 2021. Generation Z consumers have a great influence on consumption trends. As one of the fastest growing consumer groups on the e-commerce platform in China, by 2022, “zoomer” will account for nearly two-thirds of the consumers in Tmall International, and will account for more than 17% in Tmall Luxury Pavilion. According to analysis, the total number of post-95 consumers who bought luxury gifts in Tmall Luxury Pavilion in 2022 exceeded the post-85 target group for the first time. Lin Dong, general manager of Tmall International, said: “The emerging Z generation pays more attention to individuality and spends more money on enjoying life.”
According to Forrester, a market research company, virtual character IP will become more and more common in 2023. It is predicted that by 2023, one fifth of B2C brands in China will adopt digital customization to enhance consumers’ shopping experience. For example, Alibaba’s avatar “Noah” appeared in the live broadcast of American fashion brand Tommy Hilfiger, and through this activity, the total daily sales value of the brand quadrupled.
In addition, virtual characters are increasingly used in customer service of e-commerce platforms: in February 2022, Alibaba hired a virtual character named Dongdong to provide service support to consumers during the Beijing Winter Olympics.
Post time: Jul-06-2023