Chinese Consumers To Purchase Fewer US Beauty Brands During Singles’ Day

Chinese cosmetics shoppers may prefer Shiseido to Estée Lauder during next month's Singles Day. US cosmetics and fragrance brands face tough competition from Asian and European beauty companies ahead of Singles' Day. Chinese consumers will purchase fewer American-made goods during Singles' Day (November 11). According to a new survey and report released today by AlixPartners, 41% of Chinese consumers say they plan to buy fewer American brands. The survey found that the US ranks third, behind Japan and South Korea, as the preferred source country for foreign brands, as 37% chose the US as a top-three preference. Meanwhile, 50% chose Japan and 41% chose South Korea—while 26% chose France, 23% chose Germany, 15% chose Italy, 12% chose the United Kingdom and 6% chose Canada.

“Foreign brands hoping to excel in China generally and on Singles’ Day in particular should consider leveraging whatever product-quality and product-design advantages they may have while, importantly, also working to lower their overall costs to levels appropriate for the Chinese market,” said David Garfield, global leader of the consumer products practice at AlixPartners. “It goes without saying that China is a market that can’t be ignored and a market that presents big challenges, but getting your brand offering right for that market can pay off in big, big ways.”  

According to the survey, half of the respondents intend to spend more than 3,000 yuan (approximately $470) this Singles’ Day.

A report based on the survey is here.The survey, which polled 2,000 Chinese consumers, found that 85% intend to spend the same or more this Singles’ Day compared to 2020. Among those who plan to purchase skin care products the most overall this Singles’ Day, 42% said they plan to buy fewer US brands. Likewise, among those who plan to purchase electronics the most overall, 31% plan to buy fewer US brands. And among those who plan to purchase luxury goods the most overall, 31% as well plan to buy fewer US brands.

Overall, the survey found that the US ranks third, behind Japan and South Korea, as the preferred source country for foreign brands, as 37% chose the U.S. as a top-three preference. Meanwhile, 50% chose Japan and 41% chose South Korea—while 26% chose France, 23% chose Germany, 15% chose Italy, 12% chose the United Kingdom and 6% chose Canada.

However, in what might be an encouragement for foreign brands, when asked to choose their top-three reasons for purchasing foreign brands, 62% picked “better product quality/better product design,” well ahead of the second place “specific item cannot be found locally,” which was chosen by 35%.