Double 11 consumption remains strong against an evolving economic backdrop, while conscious customers look for “more bang for the buck”, says AlixPartners survey

• Nearly 60% of consumers expect to increase their spending this year, with a focus on purchasing necessities and high-quality products
• TikTok emerges as the second most popular livestreaming platform, with 58% of livestream viewers saying they will use it this year, up from 38% last year
• 88% of respondents say that they also participated in other discount festivals throughout the year, and that participating in other discount festivals either has no impact (53%) on their spending during Double 11 or even increased it (27%)

Shanghai (27 October 2022) – Double 11 still remains as the biggest shopping event of the year in China, but Chinese consumers are likely to spend more selectively this year, according to the latest Double 11 report from AlixPartners, a global consulting firm. 60% of consumers intend to spend more this year compared to last year, while 14% plan to spend less amid the dynamic economic environment and the rise of sustainable spending.

This year marks the fifth edition of AlixPartners’ annual survey on Chinese consumer behavior and trends ahead of Double 11. Almost 2,000 consumers from different regions and demographics in China participated in this survey.

SPEND MORE, SAVE MORE

The AlixPartners survey found that “value” has become a key consideration for consumers. While overall consumption remains stable and strong, 39% of all surveyed consumers say they are more conscious about product quality and will only spend when they have adequate product information. Bigger markdowns, meaning better “value for money”, are also a top priority for surveyed shoppers.

Nevertheless, as the broader global economy continues to unfold and weigh on consumer sentiment and retail sales, some shoppers have become more conscious when participating in Double 11. 34% of all respondents say they will think twice before spending and will only spend when necessary. This is reflected in the ranking of product categories – the top two categories are daily necessities and clothes & footwear, with 48% and 44% of surveyed consumers planning to increase spending in these two categories, respectively, while only 2% do not intend to spend on these two categories. By contrast, 39% of surveyed consumers have no plans to purchase luxury goods at all.

For the 14% of consumers who are likely to decrease their spending this year, they attributed their reduced spending to lower optimism about the economy/future (47%), desire to spend more sustainably and consume less (35%), and lower salary/income (33%).

POPULARITY OF LIVESTREAMING DECLINES, BUT TIKTOK MAKES BIG GAINS

Livestreaming, one of the most dominant mediums for discount shopping festivals in recent years, is seeing its popularity decline, as only 74% of surveyed consumers say they will watch or participate in livestreaming this year, down from 97% last year. Among those who watch livestreaming, 44% report that negative news relating to livestreaming hosts has made them less engaged with the medium.

Nevertheless, live commerce is still attractive to most Chinese consumers, with 1 in 3 livestream viewers expecting over 25% of their total Double 11 spending to occur through livestreaming. The top three reasons for engaging with livestreams include intent to buy certain items and better understand detailed product performance (60%), exclusive discounts and free gifts (35%), and interactivity (32%).

While Taobao remains the leading livestreaming platform, with 73% of livestream watchers saying they will go to Taobao for livestreams, TikTok is catching up aggressively. 58% of respondents who plan to participate in livestreaming will use the short-form video platform, up from 38% last year.

RATIONAL CONSUMPTION TREND DRIVES BIGGER BUT SIMPLER DISCOUNTS

Besides Double 11, 88% of all surveyed consumers also participate in other discount festivals throughout the year. However, Double 11 remains the most attractive discount festival as a majority of respondents say that participating in other discount festivals either has no impact (53%) on their spending during Double 11 or even increased it. Such trends are especially visible among higher-income groups and respondents in (new) tier 1 cities.

Based on their experience with Double 11last year, almost half of surveyed customers (42%) consider better discounts/prices as the top area for improvement. At the same time, over one third of them (35%) also want simpler promotions this year as they have become fatigued by the increasingly complicated promotional campaigns of recent years. As such, the extension of the pre-sale period and other quality-of-life improvements by e-commerce platforms would be particularly encouraging to see for the Double 11 this year.

For more survey findings, please click here.

ABOUT ALIXPARTNERS

AlixPartners is a results-driven global consulting firm that specializes in helping businesses successfully address their most complex and critical opportunities. Our clients include companies, corporate boards, law firms, investment banks, private equity firms, and others. Founded in 1981 in Detroit in the Automotive industry, AlixPartners is currently headquartered in New York, and has offices in more than 20 cities around the world. For more information, visit www.alixpartners.com.

MEDIA CONTACTS

Crystal Leung
AlixPartners
crleung@alixpartners.com
+852 6299 9729