Top 5 Consumer Trends of Chinese Consumers from China’s Mainstream E-commerce Festival Double 11

Despite the rise of interest-based e-commerce companies such as Douyin and Xiaohongshu, and the dark horse social e-commerce company Pinduoduo that uses C2B group shopping to gradually occupy the minds of Chinese online shopping users, the mainstream e-commerce platforms are still dominated by JD.com and Tmall.

According to SYNTUN, the total number of transactions on the entire network during Double 11 in 2023 (20:00 on November 10 to 24:00 on November 11) was 277.65 billion yuan, of which Tmall sales accounted for 60.02%, ranking No. one. JD.com’s sales accounted for 27.86%, ranking second.

As more and more young people are keen on natural outdoor scenes such as skiing, hiking, mountain climbing, cycling, and river tracing, many subdivisions of sports and outdoor sports are experiencing an explosion. According to Tmall data, in the first hour of Double 11 sales on October 31, 328 sports and outdoor brands sold more than in the whole day last year.

Niche sports are gradually breaking out of the circle, with surfing, water skiing, mountain climbing, volleyball, archery, etc. all experiencing good growth. The market size of the segmented fields is growing steadily and the consumption potential is huge. In addition, overseas brands are highly segmented in outdoor products, and there are overseas brands that are recognized by the outdoor circle.

According to Mojing Insight data, sales of most first-level sports and outdoor categories will achieve positive growth in 2023, with the sales of cycling supplies increasing most significantly.

For current consumers, cycling is not just a mode of transportation, but an important outlet for emotional release and self-attitude expression. High-energy positive words such as happiness, enjoyment, and freedom are closely associated with it. With the increase in the number of cyclists, the demand for cycling-related equipment is very strong. Categories including cycling clothing/equipment, bicycles and bicycle equipment have all grown significantly. Among them, road bicycles have become a popular choice on the market due to their performance and applicability, as well as the popularity of Cityride in recent years.

According to the “2023 China “Beautiful Consumption” Trend Report: Decoding the “New Potential for Beauty” report, perfume is also a category that has grown rapidly in recent years. In September 2021, Tmall’s perfume category was split and operated independently, becoming and “Beauty Cosmetics” “First-level categories” that keep pace with each other. In 2022, the demand for perfume will continue to explode. In 2022, the perfume category will become L’Oreal’s fastest growing category, with a growth rate of 22.8%; Shiseido’s perfume segment revenue increased by 12%, ranking second among all brands in the group . The growth rate of “non-obtrusive” niche perfumes far exceeds the growth rate of the overall perfume category. In 2020, the mass perfume market dropped by approximately 15%, while the niche handmade perfume and high-end perfume markets increased by 18%. Niche perfumes continue to demonstrate their explosive power , In 2022, more than 20 niche perfume brands from France, Italy, and the United Kingdom participated in Tmall 618 for the first time, and the number of brands increased by 60% year-on-year.

It can also be seen from the Tmall Double 11 list that although the perfume brands are all overseas brands, they are relatively scattered and have a loyal customer base in their respective niche fragrances.

In the luxury goods category, Coach has topped the list for four consecutive years. Its success lies in its deep understanding and layout of China’s marketing environment. They know very well that during Double Eleven, a time of year when consumers have the strongest conversion mentality, it is particularly important to strengthen the conversion power of popular products and single products, so they have implemented the following marketing strategies accordingly:

Product tiering shaping best-selling merchandise: Coach has planned a clear omni-channel product stratification and matrix based on different platforms and store positioning, consumer mental characteristics and timely data feedback.

Content matrix for both public and private domain: Cooperate with many bloggers across the entire network, including Xiaohongshu, Douyin and Weibo, to co-create graphics, text and short video content. Tmall content traffic and interest stimulating leading doubled transaction volume.

Channel differentiation strategy, completing the layout of dual stores on JD.com: Coach’s official outlet flagship store was opened on JD.com, completing the layout of flagship stores and dual outlet stores on the JD platform. Unlike Tmall, the JD platform has more male consumers and gift-giving mentality. Therefore, in addition to bags, more men’s shoes, ready-to-wear and accessories are included in the product selection. The differentiation strategy has also enabled the two stores to achieve better than expected results in JD.com’s Double 11 promotion.

Chinese style has emerged in recent years, there are many designer brands of original domestic designers that have performed well on e-commerce platforms, such as Songmont and Gu Liangjiji. However, overseas brands are still the most widely recognized and purchased by consumers, compared with the rising national trend in the beauty industry, Chinese consumers still prefer overseas brands in the field of luxury goods.

The popularity of probiotic products starting in 2023 can be seen from the fact that health care products have also entered the segmented track and entered the route of personalized needs. In the report of Tmall International, we found that in the pre-disease state, multivitamins and oral beauty products have become It is the main product for middle-aged and elderly people to maintain their energy and spirit. China’s high-intensity working environment and life pressure have also caused the number of sub-healthy people to gradually increase, increasing the demand for sub-health health care products.

In addition to basic functions, consumers are most concerned about ingredients. New ingredients promote enhanced effects through concentration and increased absorption, reducing dependence. For example, “krill oil” and “seal oil” are upgraded ingredients of fish oil, “GABA” is an upgraded ingredient of melatonin, and PPQ is a memory-improving ingredient.

Among them, Move Free’s amino sugar products have been ranked as the No. 1 cross-border health care product on Tmall International for many years.

In the maternal and infant category, hypoallergenic food supplements and hypoallergenic nutritional products are expanding rapidly. Among hypoallergenic nutritional products, probiotics are the most popular and remain highly popular.

In China’s consumer market, despite the rise of the national trend, consumers are looking for “alternatives” in daily expenses, but it has also derived more segmented market demands, and consumption patterns have become increasingly polarized. However, the number of people pursuing high quality and international brands is still increasing.