More Diverse and Younger
Despite sobering economic data over the past year, China retail sales have remained a relatively bright spot, facilitated by e-commerce and one-click smartphone payments.
“Over the years, we’ve seen consumers become more diverse and younger,” Alibaba chairman Daniel Zhang said in comments released by the company, describing the continued robust Singles’ Day performance.
China is also transitioning to an economic model increasingly driven by domestic consumption and away from a past over-reliance on manufacturing.
E-commerce sales have expanded thanks to the growing diversity of products available to Chinese shoppers and as consumers increasingly seek better-quality, higher-priced goods, analysts say.
“Consumption has already become an important portion of the economy. Digitalisation has facilitated this trend as it makes consumption more convenient and efficient than ever before,” Raymond Ma, portfolio manager with Fidelity Investments, said in a research note.