In China, Women-Led Shopping Is A $670B Enterprise

Young women are spending more and more in China, driving the economy and the view of spending habits in the country, according to a report by CNBC.

There’s a business saying in China that “those who win over women’s hearts win it all.” Spending by women in the country has increased about 81 percent in the past five years, to $670 billion, according to one of China’s largest investment banks, Guotai Junan.

This is all despite the fact that China still has a significant gender imbalance, as there are 31.6 million more males than females in the country. Still, women make up about 55 percent of online spending, which is still much more than their population proportion.

There are also events in the country that cater specifically to women, like the “queen festival” or the “goddess festival” or the “butterfly festival.” Those events offer coupons and discounts as retailers fight over the female dollar.

Another woman-centered day, International Women’s Day, has also become a huge shopping event in China. Between 2014 and 2017, women spending on the day increased 64 percent on Alibaba’s Taobao, which is China’s largest online marketplace.

Online shopping is extremely popular in China, and it accounts for about 35 percent of all retail sales, which is the highest rate on the planet. In the U.S., according to eMarketer, online sales only account for 10.9 of sales.

Online sales have been steadily rising every year in China. In 2013, sales totaled $280 billion, but that number reached $1.34 trillion in 2018. The reason for the shift toward women shoppers, according to economics professor Qiu Xiaodong, is that women live in a different time than their predecessors.

“The new generation, girls born in the ‘80s and ‘90s, live in a time when the country’s economy is growing, their income is growing, and then their parents’ consumption power and consumption concept are changing,” Qiu said.