Alibaba Group Holding may be witnessing a slowdown in online transaction growth, yet it can find consolation in China shoppers boosting their budgets for luxury items.
Consumers are open to paying as much as CNY4,200 (USD660) for a single item online, according to a KPMG survey released Tuesday. That is more than double the CNY1,900 reported in last year’s survey and may be a boon to e-commerce companies, including Alibaba and JD.com, facing an economic slowdown in China.
Shoppers drawn by pricing and better deals are willing to spend more on everything from premium cosmetics and spa treatments to shoes and handbags, said Egidio Zarrella, a partner at KPMG. The survey comes as Alibaba tries to revive growth through new services and high-end labels while confronting criticism it’s a haven for counterfeits.
(Source: The Business Times)