Chinese Prefer American Brands

Chinese Prefer American Brands

photo courtesy of Fung Global Retail & Technology

It may come as a surprise, but Chinese consumers generally prefer American brands above any other global brands.

The believe among the Chinese are that American brands represent premium quality and better design. This was the consensus after the Alibaba Gateway ’17. This international conference helps small-to-medium-sized businesses in US understand the opportunity in China and sell their products in China via Alibaba’s various platforms.

Alibaba Gateway ’17 is the largest event Alibaba hosts outside of China. There was more than 3,000 participates on June 22, 2017 in Michigan at Alibaba. Among the companies that attended the event was Fung Global Retail & Technology. The two day programme covered many success stories of merchants selling on Alibaba’s platforms in different categories, with sessions detailing how Alibaba can help more American businesses sell on its platform

Speakers at the conference focussed on the the significant demand for American goods in China. American products are ranked as the third-most-popular items on Alibaba’s e-commerce platforms after products from Japan and South Korea, according to Alibaba’s data analytics.

The conference also brought to light that the market potential for the fashion category is expected to be driven by a rising demand from the subsidiary cities in China. The market size for fashion in China is projected to reach $195 billion within the next five years. There are currently 102 cities in China with a population of over 1 million. The combined spending power of the less known cities is estimated to equate to roughly the same as the four major cities—Beijing, Shanghai, Guangzhou and Shenzhen. Alibaba’s data indicates that consumers in the other cities demand the same fashion goods as those in major cities. The fashion category is the number-one category that aspirational shoppers in subsidiary cities plan to trade up as their income increases.