The annual “Double 11” shopping festival in China has experienced a slowdown in sales growth, a trend that underscores the weakening consumer confidence and diminishing purchasing power among shoppers. In stark contrast, two American brands have continued to perform exceptionally well in the Chinese market, illustrating a notable divergence from the overall lethargy affecting several international luxury goods conglomerates.
According to a report from Syntun, a market research agency, as of November 12, 2026, the cumulative sales during the “Double 11” shopping festival, which spanned from October 7 to November 11, reached an impressive 1.78 trillion yuan (approximately 267 billion USD). This figure represents a year-on-year increase of 4.8%, yet it falls significantly short of the 14.2% growth recorded during the same period last year.
Further insights from Seeking Alpha, a U.S. financial investment analysis site, indicated that major e-commerce platforms—such as Tmall, JD.com, Pinduoduo, Douyin, and Kuaishou—reported a total gross merchandise volume of approximately 1.679 trillion yuan (around 251.7 billion USD), marking a modest 3.7% increase compared to the previous year. Citibank had previously forecasted that the overall increase in gross merchandise volume for this year’s “Double 11” would be just slightly above 2%.
Given the prevailing economic conditions, such a muted market reaction is hardly surprising. Consumer demand for high-priced goods in China has languished throughout this year. Jacob Cook, CEO of marketing and technology firm WPIC, remarked, “Chinese consumers are increasingly focused on health, wellness, personal interests, and experiences. This trend is reflected across various age groups, genders, geographical locations, and socio-economic backgrounds.”
Moreover, promotional activities associated with the “Double 11” shopping festival have begun to stretch far beyond the traditional single day on November 11. Instead, discounts have been spread out over several weeks or even an entire month. With discounts available throughout the year on major platforms, consumer enthusiasm for the “Double 11” event has begun to wane.
In the midst of a generally sluggish consumer market, American fashion and luxury brands like Coach, a subsidiary of Tapestry, and Ralph Lauren are displaying remarkable market appeal. Reports from Seeking Alpha highlight that both Coach and Ralph Lauren have maintained robust performance in China, with sales in the Chinese market witnessing a growth of around 30% in the quarter ending September 30. This performance stands in striking contrast to the lackluster results observed among luxury giants such as LVMH (the parent company of Louis Vuitton) and Kering during the same period.
Jacques Roizen, co-founder of the Shanghai-based consulting firm Foresight Performance Partners, noted that Coach and Ralph Lauren resonate with Chinese consumers because they offer a sense of “premium” experience while allowing them to reduce their expenditures.
In other words, amidst tightened spending on high-priced luxury items, these two brands present a relatively affordable branding option that has successfully carved out a niche with their precise positioning as “accessible luxury.”
However, luxury brands globally face an escalating challenge as sales continue to slow in China. The Chinese government’s actions regarding the taxation of overseas wealth have triggered a ripple effect across various sectors, from the stock market to the gambling industry, thereby suppressing spending among the nation’s wealthiest consumers.
Chinese consumers account for approximately one-fifth of global luxury goods purchases and have long been a driving force behind the industry’s growth. However, demand within this demographic has noticeably weakened, resulting in a reported collective loss of around 330 billion euros in market value among major European luxury groups this year alone.
LVMH, the world’s largest multinational luxury goods conglomerate, was the first major luxury group to report third-quarter results, and its sales data has heightened market concerns. The company’s market capitalization has plummeted by roughly 40%. Following the release of these sales figures, LVMH’s shares listed in the United States saw a decline of over 3%.
As the luxury market navigates these turbulent waters, the divergence in performance between American brands like Coach and Ralph Lauren and their European counterparts raises questions about the future dynamics of consumer behavior in China.