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"Chinese shoppers have become more rational, and they are not blindly following the crowd to imitate others. They want products with both commercial culture and consumer mentality," said Pan, adding localization of global brands must keep pace with the times to stay competitive in the fast-changing Chinese market.

"China used to have few self-developed original or innovative drugs, especially in new chemical compounds. But things are changing due to the improved regulatory environment and the stronger play of market mechanisms."

"Consumers with more knowledge about cars are more willing to buy second-hand cars as it is more cost-effective," he said, adding that the average age of Kaixin's customers is under 40.

"Compulsory technology transfers are explicitly banned, while we encourage the exchanges of knowledge and technology," he said, denying that China forces foreign companies to transfer their technology prior to investing in China.

"Competition will make it harder for Alibaba, but it will add to the excitement of the overall 11.11 festival," said Richard McKenzie, a partner at consultancy Oliver Wyman in Hong Kong.