By sending the war abroad, Chinese buyers choose locals | Business and Financial Issues
He Shuang, a U.S. university student who lost his home in Chongqing in southwestern China during the epidemic, has added more than 300 homeowners to his favorite list at Alibaba’s Taobao online.
Like him, Chinese brands are a nuisance to many consumers and have cost billions, as consumers make more patriotic choices in foreign countries.
The increase in online shopping after people were forced to move in because of COVID-19 last year, market recovery since then, and infrastructure that allows retailers to grow faster has also helped the search for locally made products.
“When you try it out, you find that the local products are as good as the foreign ones,” says He, 19, who enjoys home-made textures from Carslan’s eye shadows and Feiyue shoes to Bestore Co’s mines and Miniso homeware.
Maia Active, a sportswoman at Sequoia Capital, said her products were based on Asian women’s body measurements and, as a result, provided local customers with more convenience and comfort than their western counterparts.
New headquarters
In pursuit of their own interests, investors, too, have been pouring money into local retail companies this year.
Chinese retailers have earned $ 69.7 billion ($ 11bn) from market participants in the first five months, more than they did last year, according to Cygnus Equity, a Chinese retail bank.
“Food, drink, and drink are the most popular. Recently, the hotpot and the ramen brand are particularly envious, “said Ming Jin, a co-founder at Cygnus.
As many as 200 brands are currently seeking new funding from investors, investors and investors.
“China is the easiest market to produce anything from zero to 100 million-yuan sales,” private tea retailer Nayuki said, declining to be named because he was not allowed to speak to reporters.
Last week Nayuki raised $ 656m on a Hong Kong float, which provided an estimate of $ 4.4bn, more than double the December economy.
Weilong Delicious Global Holdings, which sells fine flour that sells for less than five yuan ($ 0.77) per pack, received 3.56 billion yuan ($ 550m) in May from major investors including Tencent, Jack Ma’s Yunfeng Capital, CPE, Hillhouse Capital and Sequoia City China. The manufacturer of snacks was valued at approximately 70 billion yuan ($ 10.8bn).
Genki Forest-sponsored by Sequoia, a type of soft drink that seeks to combat Coca Cola, said it paid $ 6bn after a refund in April, 10 times more than 18 months ago.
His acquisition attracted investors such as Louis Vuitton who owns LVMH and a Singapore-based law firm Temasek.
Love for your country
At JD.com’s online shopping festival this month, China’s sales growth was 4 percent higher than the international brands. Their customer base grew exponentially overseas by 16 percent, JD.com said.
Chris Mulliken, a Shanghai counterpart at EY’s technical agency, said patriotism is what is building the popularity of the region’s trade, including boasting China’s recovery from COVID-19 even though several other countries have a serious problem.
“People are moving, even though they are in other countries, and they are taking the opportunity to rediscover their country, get back to their traditions and discover new Chinese races,” he said.
Xinjiang’s recent ban imposed by a number of international brands including H&M, Nike and Adidas over allegations of human rights abuses in the region, which angered many Chinese consumers, also helped. China has strongly denied allegations of violence and forced labor, saying all activities in Xinjiang are legal and in line with the agreement.
The divisions of home textile manufacturers Xtep, Li Ning and Anta have increased by 196%, 60% and 38% respectively since April.
Entrepreneurs have warned of a sharp rise, saying they too have long-held demands.
“Users no longer worship foreign, foreign countries. They love the products and materials that represent them, ”said Nina Gong, executive director of Beijing’s Carlyle Group.
