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A survey conducted by global consulting firm AlixPartners found that 66% percent of Chinese consumers intend to shop from domestic brands over foreign labels during the annual Singles Day, held on 11th November each year.
AlixPartners also found that 57% of Chinese consumers plan to spend less on American products this year. On the other hand, 39% of those surveyed indicated that they intend to stop spending on European brands altogether.
“Historically, American products scored very highly on [brand] attributes,” David Garfield, Global co-leader of the consumer products practice at AlixPartners and a managing director at the firm, said in an interview.
“Chinese consumers increasingly are feeling like they can get these benefits elsewhere,” he said. “It goes beyond geopolitical talk or any trade flow impact.”
“It’s a genuine advancement on the part of Chinese manufacturers,” said Garfield. “They’re getting more sophisticated in their marketing of luxury products.”
This shift away from American brands might have effects on these businesses as they have become increasingly reliant on Chinese spending.