What Happened: On August 18, Alimama — Alibaba’s marketing, technology, and big data platform — released an insight report profiling Chinese fashion trends and consumer behaviors. The report found that China’s Gen-Z made up 30 percent of Alibaba’s total consumption, increasing by over 400 percent year-on-year. The study is further proof that this age bracket has become the most lucrative one amid the current bear market. Meanwhile, fashion retail consumption increased by over 300 percent in first- and second-tier cities in China but grew by 570 percent in third- through sixth-tier cities. Moreover, niche trends continue to inspire more collaboration opportunities.
Jing Take: Alimama developed its insight report with big data coming from Alibaba’s retail platforms, so it is a good indicator of where China’s fashion business will be heading, and therefore, what moves brands should make to attract consumers. In China, Gen Z is gradually taking the reins from millennials to become the top consumption drivers, which was exemplified by Balenciaga’s new Qixi campaign. For it, the brand adopted the “Too Cool” style that is currently favored by fashion-forward Gen Zers.
The youngest spending generation is powering many of the new fashion trends listed in the report, as that market aspires to differentiate themselves from older generations via unique or niche tastes. At the same time, the power of lower-tier cities in China cannot be underestimated thanks to the rapid development of telecommunications technologies, affordable smartphone costs, and convenient express delivery services that support expedited spending.
The Jing Take reports on a piece of the leading news and presents our editorial team’s analysis of the key implications for the luxury industry. In the recurring column, we analyze everything from product drops and mergers to heated debate sprouting on Chinese social media.