Alibaba recently held its 2022 Alibaba New Seller Summit, which helps brands explore Alibaba’s platforms. Last year, more than 6,000 global brands entered China through Alibaba’s cross-border e-commerce platforms.
A key takeaway from the event was the growing importance of Gen Z on Alibaba’s platforms. For example, consumers born after 2000 grew 70% on Alibaba’s marketplace Tmall Global between March 2020 and March 2021. Meanwhile, 30% of the users on Tmall were born after 1995.
China’s Gen Z is contributing to what already makes up the largest middle class in the world. By 2027, it’s estimated that 1.2 billion Chinese will be in the middle class, making up one-quarter of the world total. China is also the world’s biggest e-commerce market, generating $1.7 trillion in sales a year.
“Consumers of imported goods are getting much younger, with the fastest growth from Gen Z consumers, [so] their huge consumption potential is important to brands,” said Alvin Liu, president of Alibaba B2C Retail.
Gen Z has come of age in an increasingly digital world and is embracing the innovations on Alibaba’s platforms. At the summit, Lynn Dong, general manager of global business development at Alibaba, said, “The emerging Gen Z cohort values individuality higher, and they spend more on enjoying themselves.” The rise of Gen Z consumers has reshaped the consumer market, and sales of perfume, whiskey, and fashion products have all grown as a result.
The rise of a younger generation of consumers in China, comfortable with online shopping and e-commerce, provides growth opportunities for U.S. businesses. Learn more here.