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Ongoing lockdowns cut online sales in China
Purchase behaviourE-commerce & mobile retailGreater China
Amid strict lockdowns as China seeks to keep coronavirus infections down to an absolute minimum, consumers are cutting even their e-commerce spending.
What’s driving it
Lockdowns have hit brands’ abilities to make, distribute, and deliver goods – a new piece in the South China Morning Post (which is owned by Alibaba) puts numbers to the trend.
Ultimately, consumers are wary of spending on non-essentials and luxury items. But by the same token, they are finding that they simply can’t spend money even if they wanted to. While this will look grim on e-commerce firms’ earnings calls, it doesn’t point to poor fundamentals.
Sales of major brands on e-commerce platforms have plunged in April:
Uniqlo on Alibaba’s Tmall is down 33% year-on year.
Zara sales on the same platform are down 56%.
Lancome, the luxury brand, sees sales dip 33%.
Samsung has seen e-commerce sales drop 23%.
Bulgari sales are down more than 90%.
Hermes sales are down 53%.
Meanwhile total retail sales nationally have dropped 11% versus April 2021.