Online sales of brands from Uniqlo to Zara plunge in China as Covid-19 lockdowns freeze spending
- Sales turnover for Japanese clothing brand Uniqlo on Tmall was down 33 per cent in April from a year ago, while Spanish apparel retailer Zara saw a plunge of 56 per cent
- China’s e-commerce sector has been hit hard, with disruptions to deliveries and warehouses locked up, while demand for luxury goods has dried up
International consumer brands such as Uniqlo and Zara have experienced a dramatic drop in sales on Chinese e-commerce platforms as the country’s strict lockdowns stunted consumer spending in April, according to data compiled by third-party research firms.
The gross merchandise value (GMV), or sales turnover, for Japanese clothing brand Uniqlo on Alibaba Group Holding’s Tmall site was down 33 per cent in April from a year ago while the GMV sales of Spanish apparel retailer Zara plunged 56 per cent in the same month, according to data provided by market research firm YipitData.
French beauty brand Lancome saw its Tmall sales fall 33 per cent in the same period, while Samsung Electronics’ sales on the e-commerce platform tumbled 23 per cent, according to YipitData.
Alibaba, owner of the South China Morning Post, did not immediately respond to a request for comment.
The sharp fall in online sales for these consumer brands reflects the impact of China’s dynamic zero Covid-19 policy on consumer spending. At the national level, total retail sales – seen as a barometer of consumer spending – plunged 11.1 per cent in April from a year ago.
China’s e-commerce sector has been hit hard by the lockdowns, with disruptions to deliveries and warehouses locked up, while demand for luxury goods and discretionary items has rapidly disappeared as China’s affluent middle class became reluctant to spend.