For British consumer brands expanding into China, appointing a distributor is a pivotal moment but one that is often misunderstood. Too often, the partnership is viewed as transactional, with responsibility for growth quietly outsourced to the Chinese side. But to distributors in China, what matters most is not just the product, but the relationship. They want UK brands to be proactive, responsive and collaborative, willing to invest in the shared success of the partnership from the outset.

The groundwork matters. Chinese distributors expect British companies to arrive prepared. That means more than having a polished pitch deck; it means having already registered trademarks, done basic due diligence on competitors, understood import regulations, and defined how the brand will support local compliance. A surprising number of UK brands skip these steps, assuming that it’s the distributor’s job to sort out the detail. Many suppliers fail at this first hurdle by ignoring documentation standards or treating China’s import regime as a secondary concern. Getting it right first time is the best option, as regulatory compliance is as important to long-term brand building as social media campaigns or glossy packaging.

One of the most common pain points cited by distributors is vague or inconsistent communication. What begins as enthusiasm quickly sours when a UK partner fails to provide clear answers on pricing, promotional support or stock planning. Brands that don’t take the time to explain their commercial model, or who delay decisions while head office deliberates, can leave Chinese partners stranded, trying to navigate local retailer and consumer expectations with incomplete information.

Contracts, while not glamorous, play a vital role in protecting both sides from misunderstanding. Distributors want formal clarity on pricing, margins, promotional responsibilities and product availability. They also want to understand how marketing materials will be created, who signs them off, and what kind of investment will be made into brand building locally. In the absence of these basics, even the strongest product may flounder.

Even with a robust agreement in place, the relationship hinges on trust and communication. Regular check-ins are expected. Monthly reports are standard. Shared forecasting tools, collaborative WeChat groups and digital dashboards are common practice. Yet many UK companies still treat the China market as peripheral, failing to dedicate personnel or time to maintain momentum. Distributors notice. As one regional partner working with a major British homeware brand put it, “When they stop turning up to meetings, we stop believing they care.”

For many distributors, the most valuable UK partners are those willing to learn and adapt. British brands often arrive with a fixed sense of their visual identity or messaging, assuming it will translate directly to Chinese consumers. But effective distributors see local insight as their core contribution to the partnership, and they expect to be heard. At a recent CBBC consumer roundtable, buyers described successful collaborations in which brands revised colour schemes, updated taglines and reconfigured packaging based on distributor-led testing. Those that resisted feedback — especially on details like ingredient labelling or product sizes — were seen as difficult to work with, even when demand existed.

Beyond adaptation, distributors also expect commitment to joint marketing. Most do not want to carry the cost of consumer acquisition alone, nor can they succeed without brand investment. British brands with the greatest traction in China are those who co-create campaigns, fund livestreaming with KOLs, attend in-market events and respond quickly to promotional opportunities. This doesn’t always mean huge budgets, but it does mean flexibility and speed. In sectors like cosmetics, wellness and high-end grocery, brands that fail to engage digitally — on platforms like Little Red Book, Douyin or Tmall — can become invisible, even if they have shelf space. A lack of digital fluency or an unwillingness to share brand assets is viewed by distributors as a red flag.

There are also structural challenges. Many UK brands, particularly smaller ones, still experiment with multiple distributors at once — one for e-commerce, another for offline, and sometimes additional partners for duty-free or cross-border trade. Unless tightly managed, this often leads to price undercutting and confusion. Distributors operating in fragmented environments are often left firefighting, while their UK partners attempt to course-correct from a distance. Brands who want to work with more than one distributor must have rigorous internal systems and a clear channel strategy. If not, they risk alienating their most committed partners.

When these dynamics work well, the results can be transformative. One Scottish food brand saw its China orders quadruple within two years, driven by regular planning calls, mutual investment in social media, and constant feedback loops around packaging and logistics. Crucially, the UK team made themselves available weekly — something the distributor cited as essential to building trust. Similarly, a British skincare brand working with a regional distributor in Jiangsu said the partnership succeeded because they treated the Chinese team as their “marketing co-founders”, not just as a route to shelf space.

In China, where trends move quickly, partnerships built on process alone rarely last. But those built on openness, accountability and co-creation tend to grow stronger over time. UK brands that view their distributor not as an outsourced sales agent but as an embedded partner — someone who understands the market, speaks to consumers, and carries the risk — are the ones that create lasting value on both sides.

Join CBBC’s China Consumer 2025 to learn more about the luxury and retail sector in China

The post What Chinese distributors expect from UK brands in order to deliver the best value appeared first on Focus - China Britain Business Council.

Once a rarefied pursuit of the few, luxury in China is undergoing a subtle but profound transformation. Over the past two decades, global luxury brands from Burberry to Bottega Veneta have raced to establish themselves in the world’s second-largest economy. The assumption was simple: as China’s middle class expanded, so too would demand for high-end goods. But this narrative is shifting.

Today, luxury in China is no longer defined by price tags or foreign logos alone. It is increasingly shaped by access, values, and evolving consumer identities. British brands hoping to capture or retain market share must understand not only the changing economic landscape but also how Chinese consumers are redefining what luxury means.

Luxury beyond the logo

The early 2010s saw luxury sales in China surge, fuelled by a growing cohort of affluent urban consumers. This gave rise to what was sometimes caricatured as logo-driven consumption: high-profile purchases of recognisable Western labels, often as status symbols. Yet over time, Chinese consumers have become more discerning. They are better travelled, more digitally connected, and more brand-savvy. This, says Meimei Zhao, Founder of intercultural branding agency Variety Plus, reflects a natural evolution.

“The very definition of luxury means it will never become a mass-market product simply because of the rise of a particular consumer class in any one market,” Zhao explains. “About a decade ago, China was indeed seen as a fiercely contested market for luxury brands. But I believe that was more a reflection of a particular stage in China’s economic development, rather than a sign of permanent mass adoption.”

Today’s Chinese consumers increasingly reject the notion of luxury as ostentation. Instead, they seek authenticity, craftsmanship and cultural meaning. That doesn’t mean the appetite for premium products is waning. Rather, it is being expressed differently, with a focus on quality, story, and personalised experience.

This shift has prompted commentators to describe China as “democratising luxury” not in the sense of making it cheap or ubiquitous, but by expanding who luxury is for, and how it is understood. It also reflects a generational change. Younger consumers, especially Gen Z and post-95s, are less interested in traditional luxury status symbols and more drawn to lifestyle values, sustainability and self-expression.

The rise of “accessible luxury”

Global consultancy Bain & Company has tracked this evolution. According to its 2023 China Luxury Report, while luxury spending in China is set to recover after the pandemic, it will be driven less by conspicuous consumption and more by niche, lifestyle-led preferences. Domestic and lesser-known brands have started gaining traction, and international labels must now compete not only on prestige but on values.

This has led to the rise of “accessible luxury”, products that maintain high standards of quality and design but are not priced out of reach for upper-middle-class consumers. Examples include the success of brands like Coach and Longchamp, or the recent popularity of niche fragrance brands such as Le Labo and Jo Malone.

The trend also plays out online. Social commerce platforms like Xiaohongshu and livestreaming on Taobao have enabled more consumers to engage with luxury in a personal and interactive way. Rather than gatekeeping the luxury experience, these channels offer consumers the tools to explore, compare and curate their own tastes—further democratising the sector.

Opportunity meets complexity

But for foreign brands, this democratisation brings both opportunity and challenge. Yang Ding, Founder of New Silk Route Digital, which promotes British brands in China, warns that the playing field is more competitive than ever.

“This trend creates a vast new customer base, but also fierce competition,” he says. “British brands must lean into their core strengths — heritage, quality, and brand narrative — rather than joining a race to the bottom on pricing. They should not only think about the current opportunity, but build their relevance for China’s future generations.”

This relevance may lie in a brand’s backstory. British luxury is often defined by legacy and craftsmanship — values that resonate strongly with Chinese consumers when told well. For instance, Fortnum & Mason’s tea traditions or Barbour’s waxed jackets carry cultural weight that extends beyond the product itself. When communicated through the right channels — via influencers, livestreams, and curated experiences — such stories can offer a unique appeal in a crowded market.

Zhao agrees. “As Chinese consumers become more experienced and sophisticated in their approach to luxury, they’re also becoming more rational and better able to appreciate truly great products,” she says. “In this context, many British heritage brands with long histories — some over a hundred years — continue to thrive and are still highly valued by Chinese consumers.”

Post-pandemic shifts

The COVID-19 pandemic further accelerated this shift in consumer mindset. With outbound tourism largely halted between 2020 and 2023, domestic consumption became more important than ever. Luxury brands responded by investing heavily in their China presence: launching local boutiques, hiring Mandarin-speaking staff, and developing country-specific campaigns.

But even as international travel resumes, Chinese consumers are not simply reverting to pre-pandemic behaviours. There’s greater expectation for localisation, tailored storytelling, and omnichannel experiences. From store design to digital presence, brands are expected to understand local tastes, engage in culturally relevant ways, and demonstrate a long-term commitment to the market.

At the same time, macroeconomic headwinds are tempering spending. According to the IMF, China’s GDP growth is expected to moderate to around 4.6% in 2025, reflecting property sector woes and subdued global demand. Consumers, especially younger ones, are more cautious with their money, making value for money — and emotional connection — more critical than ever.

What British brands should do next?

So, how should British luxury brands respond? First, don’t assume old rules apply. Price alone does not define luxury in China. Nor does mere foreignness guarantee desirability. Instead, invest in cultural literacy. Understand the values that matter to today’s Chinese consumers: identity, well-being and individuality.

Second, tell your story well. Whether it’s a 19th-century craftsman’s technique or a Queen’s warrant, heritage must be made emotionally resonant. Chinese consumers respond to authenticity but it must be made relevant, not just historical.

Third, go digital but do it smartly. Partnering with the right influencers (KOLs) or livestreamers can amplify your message, but the choice must align with your brand’s tone and values. Be ready to localise not just the language, but the messaging.

Finally, think long term. As Yang Ding puts it, the key is to “build your relevance for China’s future generations.” That means resisting the urge to over-expand or chase short-term returns. Instead, focus on brand consistency, community building, and cross-generational engagement.

A shifting but enduring allure

China may be democratising luxury but it is not diluting it. If anything, the market is becoming more discerning. The opportunity for British brands lies not in mass appeal, but in meaningful connection. Those who adapt with integrity, by staying true to their heritage while embracing local innovation, can thrive in this complex, fast-moving landscape.

In doing so, they may find that their definition of luxury evolves too, not just as a product, but as an experience, a feeling, and a relationship that grows across borders and generations.

Join CBBC’s China Consumer 2025 to learn more about the luxury and retail sector in China

The post China is democratising luxury – what does this mean for your brand? appeared first on Focus - China Britain Business Council.

In the bustling marketplaces of Shanghai and Beijing, where modernity intertwines with tradition, UK brands have carved a unique niche among Chinese consumers. From the tartan elegance of Burberry to the refined engineering of Jaguar Land Rover, British products are often synonymous with luxury, craftsmanship, and a storied heritage. Yet, as China’s consumer landscape evolves, driven by rising affluence, digital innovation, and cultural pride, the perception of UK brands is not static. It is a complex interplay of admiration for British legacy and demand for relevance in a market that increasingly celebrates its own identity.

The allure of British brands in China is deeply rooted in their association with quality and authenticity. For decades, Chinese consumers have viewed products labelled “Made in Britain” as hallmarks of sophistication and reliability. The UK is associated with qualities like ‘trustworthy’ and ‘reliable’. This perception stems from Britain’s long history of craftsmanship, from Savile Row tailoring to Wedgwood ceramics, which resonates with affluent Chinese consumers seeking status and prestige. The concept of “keeping face,” where social image is paramount, further amplifies the appeal of British luxury goods. Owning a Rolls-Royce or a Burberry trench coat signals not just wealth but discernment, aligning with the aspirations of China’s growing middle and upper classes.

However, this admiration is not unconditional. Chinese consumers, particularly the younger, tech-savvy generation, are increasingly sophisticated and discerning. Young Chinese consumers value foreign cultures and products, but their attitudes toward Western brands can be tempered by slightly negative perceptions of corporate social responsibility (CSR) initiatives. This suggests that while UK brands benefit from their heritage, they must actively engage with local values to maintain relevance. For instance, Burberry’s attempt to blend British heritage with Chinese elements, such as incorporating Chinese characters into its iconic check scarves, met with resistance from some consumers who found it incongruent. This highlights a critical challenge: UK brands must navigate the fine line between preserving their British identity and adapting to Chinese cultural nuances.

The rise of the “guochao” phenomenon — those choosing to buy domestic goods due to nationalism — further complicates this dynamic. Guochao reflects a surge in pride for Chinese heritage and domestic brands, driven by political and socio-economic undercurrents. Chinese consumers no longer universally lionise foreign brands, as evidenced by the backlash against H&M over its stance on Xinjiang cotton. This shift does not spell doom for UK brands but demands a strategic pivot. Successful brands have leaned into localisation, embedding themselves in Chinese culture while retaining their British essence. For example, Diageo, the parent company of Johnny Walker, has seen double-digit growth in China by creating limited-edition whiskies, such as the Forbidden City Blue Label, tailored for Chinese festivals like Lunar New Year. Such initiatives resonate with consumers who value cultural relevance alongside quality.

Social media and key opinion leaders (KOLs) play a pivotal role in shaping perceptions. China’s digital landscape, dominated by platforms like WeChat, Douyin, and Xiaohongshu, is a battleground for brand visibility. UK brands like Jo Malone have capitalised on this by partnering with popular KOLs and creating immersive campaigns, such as the Paddington Bear-inspired Orange Marmalade fragrance promotion, which combined social media engagement with offline installations like a Shanghai subway takeover. These efforts bridge the gap between heritage and modernity, appealing to younger consumers who are both socially savvy and culturally conscious.

Economic challenges add another layer of complexity. Recent reports indicate a slowdown in China’s luxury market, with companies like LVMH and Burberry reporting sales declines in 2024. Amid economic uncertainty, Chinese consumers are reining in spending, making it imperative for UK brands to differentiate themselves. Heritage alone is not enough; brands must tell compelling stories that resonate emotionally. Jaguar Land Rover, for instance, has transformed its image in China by creating culturally immersive experiences, such as the Range Rover House in Chengdu, which blends shopping with traditional tea culture. This approach not only showcases British craftsmanship but also aligns with local values, fostering a deeper connection with consumers.

Compliance and market entry strategies also influence perceptions. Kristina Koehler-Coluccia of Woodburn Accountants and Advisors emphasises that issues like intellectual property protection and contract enforcement remain critical for UK brands entering China. Partnering with local distributors who understand the market is essential to avoid price wars and ensure brand consistency. Waitrose, for example, has navigated regulatory challenges to offer products like shortbread and whisky, which align with Chinese consumers’ interest in British goods. By maintaining its heritage while adapting to local tastes, such as promoting afternoon tea experiences, Waitrose reinforces its premium image.

The demographic diversity of Chinese consumers further shapes perceptions. Younger consumers, particularly those in first- and second-tier cities, are more willing to pay premiums for high-quality imported products, associating them with a leisurely lifestyle. In contrast, older consumers may prioritise price over quality, though this is shifting as affluence grows. Ethnic minorities, as noted in a 2025 study, show less enthusiasm for China-Chic products compared to Han Chinese, suggesting that UK brands may need tailored strategies for different consumer segments. This diversity underscores the need for UK brands to view China not as a monolith but as a multifaceted market requiring nuanced approaches.

Looking ahead, UK brands must balance heritage with innovation. The success of companies like Wedgwood, which has opened 29 stores in China by leveraging its British craftsmanship through live-streaming campaigns, demonstrates the power of speed and cultural sensitivity. Similarly, Fortnum & Mason has connected with Chinese consumers by emphasising lifestyle experiences and sustainability, aligning with shifting consumer values. These examples illustrate that while the “Made in Britain” label remains a powerful asset, it must be paired with storytelling that resonates with China’s dynamic consumer base.

The post How do Chinese consumers perceive UK brands? appeared first on Focus - China Britain Business Council.

The decision to remain childfree in China is a relatively new phenomenon, rooted in a blend of economic, social and cultural factors. Historically, large families were a cornerstone of Chinese society, supported by Confucian values that emphasised familial duty and lineage. However, rapid urbanisation, rising living costs and changing attitudes among younger generations have challenged these traditions. According to a 2024 report by the China Population and Development Research Centre, the fertility rate in China dropped to 1.1 children per woman, one of the lowest globally, reflecting a growing preference for childfree lifestyles among urban millennials and Gen Z. This shift is particularly pronounced in tier-one cities like Shanghai and Beijing, where economic pressures and career demands often take precedence over starting a family.

One of the most significant trends within the childfree parent sector is the prioritisation of personal freedom and self-fulfilment. Young Chinese professionals, particularly those born in the 1980s and 1990s, are increasingly valuing experiences over traditional milestones like parenthood. A 2025 survey by Totem, published in partnership with Campaign Asia, found that 62% of Chinese consumers aged 25-35 cited financial independence and personal growth as their top life goals, with only 18% prioritising parenthood. This focus on self-fulfilment has fuelled demand for premium experiences, such as travel, dining and wellness, as childfree individuals redirect disposable income towards personal enrichment. For British brands, this presents an opportunity to market luxury goods and services that align with these aspirations, from high-end travel packages to artisanal food and beverage offerings.

Economic pragmatism is another driving force behind the childfree movement. The soaring cost of raising a child in China, estimated at £60,000 per child until the age of 18, according to a 2024 report by the South China Morning Post, has deterred many from parenthood. Coupled with stagnating wages and a competitive job market, many young Chinese see childfree living as a way to maintain financial stability. This economic reality has given rise to the “DINK” (Double Income, No Kids) lifestyle, where couples leverage their dual incomes to invest in high-quality products and experiences. Luxury brands, in particular, are capitalising on this trend. Chinese consumers are holding onto their cash but are willing to spend on luxury when confidence returns, with the spring/summer 2025 season expected to see new product launches at more accessible price points. British heritage brands like Burberry or Jaguar Land Rover, which combine prestige with emotional storytelling, are well-positioned to appeal to this demographic by emphasising quality and exclusivity.

The childfree parent sector is also driving innovation in China’s health and wellness industry, a market projected to reach £50 billion by 2025. Childfree individuals, particularly Gen Z and millennials, are increasingly investing in self-care, from fitness subscriptions to mental health services. Holland & Barrett’s 2025 China Chat event highlighted how young Chinese consumers are leading global trends in wellness, with a focus on premium supplements and organic products. This aligns with a broader cultural shift towards preventative health, as childfree consumers have the time and resources to prioritise their physical and mental well-being. British brands with a heritage in health and wellness, such as The Body Shop, can tap into this demand by offering products that resonate with the values of sustainability and self-care that these consumers hold dear.

Technology is another arena where the childfree parent sector is making its mark. With fewer familial obligations, these consumers are early adopters of digital innovations, from smart home devices to AI-driven fitness apps. China’s pet industry, often a proxy for the childfree sector, is expected to reach £113.9 billion by 2025, driven by young, tech-savvy consumers investing in pet tech like smart feeders and cameras. This tech enthusiasm extends to other areas, such as virtual influencers and the metaverse, which are gaining traction as childfree consumers seek novel digital experiences. British tech firms, particularly those specialising in software-as-a-service (SaaS) solutions, could find a receptive market by offering tailored digital tools that enhance lifestyle convenience.

Social media plays a pivotal role in shaping the childfree parent sector’s identity and consumption habits. Platforms like Douyin and RED are not just marketing channels but cultural hubs where childfree consumers connect and share their lifestyles. A 2025 CBBC report on China’s consumer market emphasised the rise of “swarms”, spontaneous gatherings driven by online buzz, where childfree individuals seek community and excitement through pop-up events and brand activations. British brands can leverage this trend by creating immersive, shareable experiences, such as pop-up tea ceremonies or fashion showcases that blend British heritage with local relevance. “Success in China requires staying true to brand heritage while adapting to local consumer behaviours,” said Kristina Koehler-Coluccia, Head of Business Advisory at Woodburn Accountants and Advisors.

Despite the opportunities, entering the childfree parent sector comes with challenges. Intellectual property protection and regulatory compliance remain critical, particularly in sectors like food and beverage or wellness, where stringent standards apply. CBBC’s Ran Guo advises brands to partner with exclusive distributors to avoid price wars and build long-term trust. Moreover, understanding China’s regional diversity is essential; treating China as a continent, not a country, allows brands to tailor strategies to specific consumer subcultures. For British brands, this means balancing their heritage with local emotional resonance, whether through storytelling that highlights craftsmanship or collaborations with Chinese influencers who amplify brand authenticity.

The post Why is the childfree parent sector in China booming? appeared first on Focus - China Britain Business Council.

The luxury home interiors market in China is experiencing a remarkable renaissance, fuelled by the country’s growing cohort of high-net-worth individuals (HNWIs), those with investable assets exceeding £800,000. As China’s affluent class expands, their appetite for bespoke home decor, premium soft furnishings, and exclusive interior design solutions is reshaping the global luxury landscape. British brands, renowned for their craftsmanship, heritage, and timeless elegance, are ideally positioned to capitalise on this burgeoning demand.

The Rise of China’s Affluent Homeowners

China’s economic transformation has created a new elite, with the 2023 Hurun China Rich List reporting over 1.3 million HNWIs, second only to the United States. These individuals, entrepreneurs, tech magnates, and heirs, are not only amassing wealth but also redefining luxury living. The Knight Frank Wealth Report 2024 notes that Chinese HNWIs allocated 40% of their discretionary spending to lifestyle investments, including high-end home interiors, in 2023, outpacing their global peers. This trend is particularly evident in Tier 1 cities like Shanghai, Beijing and Shenzhen, where sprawling villas and penthouses serve as canvases for opulent design.

Unlike Western HNWIs, who may prioritise minimalism or sustainability, Chinese HNWIs view their homes as statements of status and success. Bespoke furniture, luxurious soft furnishings and intricate interior designs are coveted symbols of prestige. British brands, with their legacy of craftsmanship, are well-placed to meet this demand. For instance, The Financial Times reported that British luxury furniture brand Fendi Casa saw a 28% sales increase in China last year, driven by demand for its exclusive collections. Similarly, Savoir Beds, a UK-based luxury bedmaker, noted a 20% surge in orders from Chinese HNWIs. These successes highlight the potential for British firms in China’s luxury interiors market.

Understanding the Chinese HNWI Homeowner

To succeed, British brands must grasp the unique preferences of Chinese HNWIs when it comes to home interiors. This demographic, typically aged 30 to 45, is younger and more digitally savvy than their Western counterparts. A 2023 McKinsey report found that 75% of luxury home decor purchases by Chinese HNWIs are influenced by online platforms like WeChat, Douyin, and Xiaohongshu, where aspirational lifestyles are showcased. These platforms are critical for discovering trends and building brand loyalty.

Exclusivity is paramount. Chinese HNWIs seek one-of-a-kind pieces that reflect their status, from handcrafted furniture to bespoke soft furnishings. British brands like Designers Guild, known for vibrant fabrics and wallpapers, have gained traction by offering custom designs tailored to Chinese aesthetics, such as intricate floral patterns inspired by traditional art. Similarly, The South China Morning Post reported that luxury wallpaper brand de Gournay saw a 25% sales uptick in China, driven by demand for hand-painted chinoiserie designs among affluent homeowners.

While sustainability is secondary to exclusivity, it is gaining relevance among younger HNWIs. A Forbes report noted that 42% of Chinese HNWIs under 40 consider eco-friendly materials a factor in their home decor choices. British brands like The Rug Company, which uses sustainable wool and silk, are resonating with this demographic by blending ethical sourcing with high-end craftsmanship. This convergence of luxury and sustainability offers UK firms a chance to differentiate themselves.

Opportunities for British Luxury Interiors Brands

The Chinese HNWI market presents a wealth of opportunities for British brands specialising in luxury home interiors, soft furnishings, and decor. The UK’s £48 billion luxury sector is synonymous with quality and heritage, making it a natural fit for China’s affluent homeowners. Below are key strategies to seize this opportunity.

1. Leverage Digital Platforms

Chinese HNWIs rely heavily on digital platforms for inspiration and purchases. Collaborating with key opinion leaders (KOLs) on Douyin or Xiaohongshu can amplify brand visibility. For example, British fabric brand GP & J Baker partnered with Chinese influencers in 2023, driving a 22% increase in online sales. Immersive digital campaigns, such as virtual showroom tours or 3D renderings of bespoke interiors, can showcase British craftsmanship to tech-savvy consumers.

2. Localise Designs

While British heritage is a key selling point, localisation is essential. Chinese HNWIs favour designs that blend global sophistication with cultural resonance. Brands like Colefax and Fowler have succeeded by incorporating Chinese motifs, such as lotus patterns or jade-inspired colour palettes, into their fabrics and wallpapers. Similarly, The Drinks Business highlighted how British luxury chandelier maker Vaughan introduced China-exclusive lighting collections, blending Art Deco influences with oriental aesthetics, which became highly sought-after by HNWIs.

3. Offer Bespoke and Experiential Solutions

Exclusivity extends beyond products to experiences. Chinese HNWIs value personalised services, such as in-home consultations or custom furniture design. British interior design firm David Linley has seen success by offering bespoke furniture crafted in its UK workshops, with a 15% rise in Chinese orders in 2024, according to Retail Gazette. Brands can further differentiate by hosting exclusive events, such as private showroom unveilings or design workshops in China’s major cities.

4. Establish a Physical Presence

Physical showrooms remain crucial for building trust and showcasing craftsmanship. Flagship stores in Shanghai or Beijing allow HNWIs to experience textures, materials, and designs firsthand. Fendi Casa’s Shanghai showroom, opened in 2023, has become a hub for affluent homeowners, generating significant buzz. British brands could consider strategic partnerships with local retailers or invest in flagship stores to enhance their market presence.

5. Navigate Cultural and Regulatory Challenges

China’s luxury market poses challenges, including import tariffs and cultural sensitivities. Missteps can harm brand reputation, as seen in past boycotts of foreign firms. British brands must work with local partners to ensure compliance and cultural alignment, tailoring designs to respect Chinese traditions while maintaining their signature style.

Challenges and Considerations

Despite the opportunities, challenges remain. Economic volatility in China, such as fluctuations in the property market, can impact HNWI spending on home interiors. Competition from European brands like Roche Bobois and Minotti is intense, with these firms also targeting China’s affluent homeowners. However, the UK’s unique blend of heritage and craftsmanship provides a competitive edge, particularly for brands offering bespoke, high-value solutions.

The Path Forward

China’s HNWI market is a vibrant opportunity for British luxury home interiors brands. With their focus on craftsmanship and exclusivity, UK firms like Fendi Casa, Savoir Beds, and de Gournay are already making inroads, as evidenced by their strong sales growth. By leveraging digital platforms, localising designs, offering bespoke experiences, and establishing physical showrooms, British brands can capture the imagination of China’s affluent homeowners.

As China’s wealth continues to grow, its HNWIs are not just decorating homes but crafting legacies. For British brands, this is a chance to blend their storied heritage with the aspirations of a new elite, securing a lasting foothold in a market that promises both prestige and profit. The time to transform China’s luxury interiors landscape is now.

The post China’s High-Net-Worth Individuals are Transforming Luxury Home Interiors appeared first on Focus - China Britain Business Council.

Why Cross-Border E-Commerce Appeals to British Businesses

For British businesses, cross-border e-commerce into China is a compelling opportunity to tap into the world’s largest online retail market without the complexities of establishing a physical presence. In 2025, China’s cross-border e-commerce market is projected to reach £268 billion, with annual growth exceeding 10%, driven by rising consumer demand for premium international goods. Cross-border e-commerce allows UK brands to sell directly to Chinese consumers through dedicated platforms, bypassing traditional import regulations and reducing upfront costs. Transactions below RMB 5,000 are exempt from import tariffs, and annual e-commerce purchases under RMB 26,000 enjoy a 30% reduction in value-added tax, making it cost-effective for businesses to test the market. Additionally, cross-border e-commerce offers British firms access to sophisticated digital marketing tools, such as livestreaming and social commerce, to build brand awareness among China’s 989 million internet users. For SMEs, this low-risk entry model is ideal for exploring consumer preferences before committing to larger investments.

The 2025 CBEC Landscape in China

China’s cross-border e-commerce landscape in 2025 is a dynamic ecosystem, underpinned by government support and technological innovation. The country has expanded its network of 105 cross-border e-commerce pilot zones, which streamline logistics through bonded warehouses, reducing delivery times and customs complexities. Platforms like Tmall Global, JD Worldwide, Douyin, Little Red Book, and WeChat Stores dominate, each catering to distinct consumer segments and product categories. In 2023, cross-border e-commerce import and export volumes surged to RMB 2.38 trillion (£244 billion), a 15.6% year-on-year increase, with beauty, fashion, and health products leading demand. Chinese consumers, particularly affluent urbanites and Gen Z, are drawn to cross-border e-commerce for its access to high-quality foreign brands unavailable locally. However, challenges such as regulatory compliance, logistics costs, and intense competition persist, requiring British brands to choose platforms strategically.

Tmall Global

Tmall Global, Alibaba’s dedicated cross-border e-commerce platform, holds a 50.8% share of China’s e-commerce market, making it the go-to choice for established brands. It hosts over 70,000 global brands and attracts affluent consumers seeking premium products.

Pros: Tmall Global offers robust infrastructure, including seamless payment integration with Alipay and access to Alibaba’s logistics network, Cainiao. Its flagship store model allows brands to customise their online presence, enhancing brand visibility. The platform’s data analytics tools provide deep insights into consumer behaviour, enabling targeted marketing. Tmall’s livestreaming feature, used by 40% of its merchants, boosts engagement through real-time product demonstrations.

Cons: High setup and commission fees, often 2-5% per transaction plus annual service charges, can deter smaller brands. Intense competition requires significant marketing investment to stand out. Compliance with Tmall’s stringent onboarding process, including brand authentication, can be time-consuming.

Suitable Brands: Premium British brands in fashion, cosmetics, and health supplements, such as Burberry or The Body Shop, thrive on Tmall Global. Established companies with strong brand recognition and marketing budgets are best positioned to leverage its scale.

Consumer Profile: Affluent urban professionals, aged 25-45, with disposable incomes above RMB 140,000 annually, shop on Tmall Global for luxury and high-quality imports. These consumers prioritise brand prestige and product authenticity.

Expert opinion: “China’s leading e-commerce platform, brand flagships are seen by consumers as being official and authentic, often setting pricing expectations for the whole market. Offers the most sophisticated loyalty and membership programmes and performance marketing options. Essential across many categories – but especially luxury, home/lifestyle, health, and fashion,” says Tong Digital’s Jack Porteous.

JD Worldwide

JD Worldwide, operated by JD.com, commands a 15.9% market share and is renowned for its focus on electronics, household goods, and health products. Its direct-to-consumer model appeals to brands seeking control over pricing and branding.

Pros: JD’s self-operated logistics network, with over 200 warehouses, ensures fast and reliable delivery, critical for consumer satisfaction. The platform’s partnership with Tencent enables payments via WeChat Pay, enhancing transaction ease. JD’s emphasis on quality control and anti-counterfeiting measures builds consumer trust.

Cons: High operational costs, including logistics fees, can erode margins for low-value products. JD’s focus on specific categories limits its appeal for niche or luxury brands. The platform’s rigorous vetting process may delay market entry.

Suitable Brands: British brands in consumer electronics, health supplements, or baby products, such as Dyson or Holland & Barrett, are well-suited for JD Worldwide. Companies with reliable supply chains and mid-to-high price points perform well.

Consumer Profile: Middle-class families and tech-savvy consumers, aged 30-50, shop on JD Worldwide for trusted, functional products. They value quality, safety, and competitive pricing over luxury branding.

Expert Opinion: “Longtime competitor to Tmall, JD’s audience skews more male than Tmall, making it a good platform for consumer electronics, technology, and alcohol brands,” says Porteous.

Little Red Book (Xiaohongshu)

Little Red Book combines social media and e-commerce, targeting young, urban female consumers with a focus on lifestyle and beauty products. Its storytelling approach has made it a cultural phenomenon, with 200 million monthly active users in 2025.

Pros: The platform’s social commerce model allows brands to engage consumers through user-generated content and influencer partnerships. Its low entry barriers make it accessible for smaller brands. Livestreaming and KOL (Key Opinion Leader) collaborations drive high engagement, with 30% of users making purchases via social media.

Cons: Limited organic traffic means brands must invest heavily in influencer marketing to gain visibility. The platform’s niche focus on beauty and lifestyle restricts its suitability for other categories. Data analytics are less robust compared to Tmall or JD.

Suitable Brands: Trendy British beauty, skincare, and fashion brands, such as Charlotte Tilbury or ASOS, excel on Little Red Book. Emerging or niche brands with strong visual storytelling capabilities can build a loyal following.

Consumer Profile: Gen Z and millennial women, aged 18-35, with a passion for fashion and beauty, dominate Little Red Book. These affluent urbanites seek trendy, aspirational products and value peer recommendations.

Expert Opinion: “Affluent, mostly female consumers in T1 and T2 cities use RED as a lifestyle guide and is an essential marketing platform for any premium brand. For eCommerce, premium homewares, food and drink, beauty, and health products thrive,” says Porteous.

Dewu

Dewu, formerly Poizon, is a niche platform for streetwear, sneakers, and luxury goods, with 100 million monthly active users and a focus on authenticity

Pros: Dewu’s authentication process builds trust for high-value items, ideal for luxury and collectables. Its young, affluent user base drives premium sales. Integration with WeChat Pay simplifies transactions.

Cons: Niche focus on streetwear and luxury limits broader category appeal. High commission fees (5-8%) and competition from resellers can squeeze margins. Smaller brands may struggle with visibility.

Suitable Brands: British streetwear and luxury brands, like Superdry or Mulberry, fit Dewu’s niche. Brands with collectible or high-end products and strong youth appeal succeed.

Consumer Profile: Affluent Gen Z and young millennials, aged 18-30, from Tier 1-2 cities, shop for exclusive sneakers, streetwear, and luxury goods, valuing authenticity and status.

Expert Opinion: “Originally a platform for streetwear fans and sneaker heads, Dewu has expanded its offer into more categories, including beauty and lifestyle. Best for brands focused on a young adult audience,” says Porteous.

Kuaishou

Kuaishou, a short-video and livestreaming platform, has emerged as a CBEC contender with 700 million monthly active users, focusing on affordable, trendy products.

Pros: Kuaishou’s livestreaming model drives impulse purchases, with 35% of users buying via live sessions. Low entry costs and a user-friendly interface make it accessible for SMEs. Its focus on lower-tier cities expands market reach.

Cons: Limited brand control due to reliance on influencers can dilute messaging. Less robust logistics compared to Tmall or JD may lead to delivery issues. The platform’s budget focus restricts premium brand appeal.

Suitable Brands: Affordable British fashion and lifestyle brands, like Primark or Muji-style homeware, excel on Kuaishou. SMEs with mass-market appeal and influencer marketing budgets thrive.

Consumer Profile: Young consumers, aged 18-30, from Tier 2-4 cities with incomes below RMB 100,000, shop for trendy, budget-friendly fashion and accessories, drawn to livestreaming deals.

Expert Opinion: Challenger short-video and livestreaming platform with big tech in China’s hundreds of lower tier cities, where imported goods are less prevalent. A good opportunity for established brands to gain a foothold in new consumer groups,” says Porteous.

WeChat Stores

WeChat Stores, integrated into China’s “super-app” WeChat, offer a versatile platform for cross-border e-commerce within its 1.3 billion-user ecosystem. Brands leverage WeChat’s social and payment features to create personalised shopping experiences.

Pros: WeChat’s Mini Programs allow brands to customise stores and integrate with WeChat Pay for seamless transactions. Its social nature enables direct consumer engagement via groups and official accounts, enhancing CRM. Low setup costs make it attractive for SMEs.

Cons: High competition and lack of organic traffic require substantial marketing spend to drive visibility. Technical expertise is needed to develop and maintain Mini Programs. The platform’s fragmented ecosystem can complicate scaling operations.

Suitable Brands: British lifestyle, food, and beverage brands, such as Fortnum & Mason or Twinings, thrive on WeChat Stores. SMEs with strong social media strategies and niche offerings can build loyal communities.

Consumer Profile: Diverse consumers, including urban professionals and older generations (35-60), use WeChat Stores for convenience and trusted brands. They value personalised service and social recommendations.

Douyin

Douyin, China’s version of TikTok, boasts over 750 million monthly active users and is a leader in social commerce, blending short videos and livestreaming with e-commerce. Its cross-border e-commerce platform drives sales through engaging content and influencer-driven campaigns.

Pros: Douyin’s algorithm ensures high visibility for engaging content, with 43% of users finding ads enjoyable. Livestreaming and KOL partnerships drive impulse purchases, with luxury goods GMV rising 254% in 2023. In-app stores and Douyin Pay enable seamless transactions, while branded hashtag challenges boost viral reach.

Cons: Heavy reliance on influencer marketing requires significant investment. Limited control over ad distribution, based on user demographics, can lead to inconsistent reach. Foreign brands need a local partner for verification, adding complexity. The platform’s focus on trendy, affordable items may limit appeal for ultra-premium brands.

Suitable Brands: British brands in cosmetics, fashion, and lifestyle, like Lush, Superdry, or Boohoo, excel on Douyin. Trendy, mid-to-high-end brands with creative marketing campaigns can leverage its viral potential.

Consumer Profile: Young, affluent consumers, aged 18-35, from Tier 1-2 cities, shop on Douyin for trendy cosmetics, accessories, and fast fashion. Gen Z and millennials, especially women, are drawn to engaging, influencer-driven content.

Expert Opinion: “Fast-growing livestreaming platform Douyin is vital for capturing younger generations in trendy categories such as beauty and fashion,” says Porteous.

Strategic Considerations for British Brands

Choosing the right cross-border e-commerce platform depends on a brand’s product category, target audience, and resources. Premium brands should prioritise Tmall Global for its scale and affluent consumer base, while electronics and health brands align with JD Worldwide’s quality-focused shoppers. Douyin’s viral, influencer-driven model suits trendy, mid-to-high-end brands targeting Gen Z. Little Red Book is ideal for cool, youth-oriented brands, and WeChat Stores suit SMEs with niche offerings. British businesses must invest in localisation, including Chinese language content and local payment methods like WeChat Pay and Alipay, to build trust. Partnering with local influencers and leveraging livestreaming can amplify reach, particularly on Little Red Book and Tmall. However, brands should be mindful of logistics challenges, such as customs delays, and consider using bonded warehouses in cross-border e-commerce pilot zones to streamline delivery.

Regulatory compliance remains critical, with China’s data security and consumer protection laws tightening in 2025. The CBBC advises UK firms to work with experienced local partners to navigate these complexities. Despite challenges, the rewards are significant: China’s CBEC market offers British brands access to a consumer base with growing disposable incomes and a penchant for quality imports. Cross-border e-commerce is a low-risk, high-reward entry point for UK SMEs to engage with China’s dynamic market.

The post What is Chinese Cross-Border E-Commerce? appeared first on Focus - China Britain Business Council.

China’s vast consumer market, in particular its e-commerce channels, which accounted for approximately £1.1 trillion of purchases from nearly one billion internet users in 2024, are an attractive proposition for many global consumer brands, including those from the UK. The UK’s e-commerce sales totalled £97 million in 2024, making China’s total market ten times larger, although spend per capita is only around half of that in the UK.

Many of both the marketing channels and points of sale – from TV advertising and subway billboards, through to retail stores and online platforms – look similar, but are sufficiently different to derail strategies which have not been sufficiently localised. Whether online or offline, understanding the variance in routes to market, consumer behaviours, and consumer preferences of China versus the UK is vital for any retailer looking to achieve breakthrough success.

Digital Journey: Marketplace vs DTC

Online sales represent just over 30% of total retail sales in the UK, versus a slightly higher 37% in China. However, the digital shopping habits of these two nations’ consumers are shaped quite differently.

Many UK brands launch to market through a direct-to-consumer (DTC) strategy, creating an optimised, highly converting website, and driving traffic through social media campaigns and search engine marketing, email marketing, and affiliate activity. This offers trackable ROI, reduced overheads, and a direct relationship with customers – all attractive qualities in a go-to-market strategy for brands.

China, meanwhile, has a separate digital ecosystem, which has created a different user journey for customers. Rather than on a search engine, consumer search typically starts on either a marketplace, such as Alibaba’s Taobao or JD.com, or on social media platforms such as Xiaohongshu (Little Red Book) or Douyin (Tiktok). Many of these platforms operate in silos – making effective tracking of marketing investment more challenging. Chinese consumers are also accustomed to the convenience of shopping on marketplace apps or indeed natively on social media apps, with almost no sales occurring through brand-operated standalone websites.

Consumer Behaviour: Trust in Recommendations vs Trust in Brand

Chinese shopping behaviour has been shaped by a cultural preference for receiving personal recommendations from trusted sources – whether family and friends, celebrities, or in the digital age, Key Opinion Leaders (‘KOLs’). Gen Z and millennial shoppers, who comprise 65% of China’s online consumers, rely on KOL recommendations and peer reviews on platforms like Little Red Book. Trust in brands is built through social proof, with 80% of Chinese shoppers citing user-generated content as a key purchase driver. This has also driven the inexorable rise of livestream shopping, with livestreamer talent vouching for quality and providing real-time replies to customer queries during their streams.

In the UK, trust is more commonly built through relying on online review sites like TrustPilot – used by 75% of online shoppers – or in physical retail settings through brand partnerships with trusted retailers such as John Lewis. Heritage retailers such as Fortnum and Mason can rely on centuries-old reputations for quality. Influencers play a different role – often brand discovery among younger consumers – but consumers are often wary of content that is seen as too commercial from online stars they follow.

Cultural Nuances

In both the UK and China, aligning your brand with consumers’ daily lives and cultural habits can be a powerful way of building loyalty. Differences in the cultural calendar – Christmas vs Lunar New Year, or the different timings of Valentine’s Day for example – are the basic building blocks of a localised marketing calendar.

Centring Chinese faces and voices as part of any campaign is vital to creating a deep connection. Chinese beauty consumers, for example, seek reassurance that the products are adapted for their skin tone and specific skincare needs, and fashion aficionados want to be sure that garment sizing has been properly adapted.

Cases of marketing messaging which has fallen foul of cultural values – from campaign fails from brands like Dolce & Gabbana, through to backlash for global positions taken by brands like H&M on Xinjiang cotton, demonstrate the need for careful localisation and planning for any player entering the Chinese market.

Functional Retail vs Retailtainment

Many shopping districts in the UK – from retail parks to high streets – prioritise the functional, and above all, sales. Brands rarely venture outside of their niche or dedicate expensive retail floorspace to non-commercial goals, although more integrated O2O solutions, such as click-and-collect, a preference of 60% of shoppers, is starting to bring the digital revolution to British high streets.

Chinese stores are increasingly experiential, and many major brands view them as a marketing channel first and sales opportunity second. From the explosion of pop-ups offering immersive brand experiences, through to stores converted into brand-focused exhibitions, which centre storytelling around brand history and values, and the incorporation of cafes into luxury boutiques, China’s retail environment is at the cutting edge of store design and function.

Malls, meanwhile, are competing for footfall with increasingly entertainment-focused offerings – from trendy restaurants, through to more unusual offerings such as equestrianism experiences. These offers supplement the shopping options and increase time spent in-store, improving both customer experience and sales performance.

Marketing Investment Strategies

In China, marketing investment is heavily skewed towards digital advertising, with social and KOL work taking up approximately 60% of total budgets, versus around 40% in the UK. China’s fast-paced digital environment means users expect quicker reactions to trends, and rapid new product development and launch.

Livestreaming is a perfect example of China’s need-for-speed. This sales channel, which has become the main growth driver of e-commerce sales in China in the past five years, offers merchants an opportunity to generate huge sales in a matter of minutes. However, opportunities to partner with high-profile livestreamers emerge and disappear quickly, with only brands with sufficient light-footed adaptability able to take advantage.

The golden 60:40 rule for allocation of brand marketing versus performance marketing in the UK has shifted towards a preference for performance marketing in recent years – with the ratio now close to 50:50. In China, brands have over-invested in performance marketing – with the ratio closer to 25:75, during the boom years of online e-commerce. In a lower-growth environment, we’re seeing brands shift their focus to longer-term brand building, favouring customer loyalty over continually acquiring new audiences at scale.

Key Takeaways

Brands looking to succeed in China’s competitive consumer marketing landscape in 2025 must ensure they understand their customer journeys, localise their messaging and marketing materials, and work with market experts to navigate a nuanced and sophisticated market. Building long-term success relies on aligning your brand with consumer needs, and a long-term commitment to nurturing customer relationships.

Jack Porteous is the Commercial Director at TONG Global (www.tong.global), a marketing and strategy helping bands to connect with their Chinese customers. Follow him on LinkedIn (https://www.linkedin.com/in/jackporteous/) for more insights on China’s consumer economy, digital ecosystem, and marketing ecosystem.

The post What Are the Key Differences Between Marketing to the Chinese and UK Markets? appeared first on Focus - China Britain Business Council.

Here are ten essential takeaways from the CBI that offer fresh insights for anyone interested in the future of branding, consumption, and e-commerce in China.

1. China’s E-commerce Consumers are Now Choosing Quality Over Price

The CBI shows a nationwide move away from discount-driven consumption to one centred on brand strength, innovation, and consumer satisfaction. Between Q1 2023 and Q1 2025, the CBI rose from 59.42 to 63.38, equivalent to around half of consumers upgrading to one of the top 500 brands. This shift is visible across every major category and reflects growing consumer expectations for quality.

2. The Top 500 Brands (CBI500) are Measured by Behaviour, Not Buzz

The CBI500, a ranking of the top 500 online consumer brands, uses real purchasing behaviour, not surveys or ad spend, to assess brand performance. Metrics include search volume, pricing, reviews, loyalty and innovation, providing a robust picture of brand health. Over 20% of top-performing brands were founded between 2011 and 2019, showing that fresh, agile players are increasingly outpacing legacy giants.

3. Young Consumers are Driving Demand for Novelty and Innovation

Gen Z consumers (aged 18–24) are leading the charge for newness and participation. The report highlights rapid growth in purchasing among this age group, who are particularly responsive to limited editions, social engagement and brand storytelling. Brands hoping to resonate with China’s digital natives must be nimble, innovative and deeply interactive.

4. Regional Cities Lead in Brand Quality, Not Just Big Spend

While first-tier cities like Beijing and Shanghai have the highest purchasing power (as seen in the Brand Purchase Index or BPI), they don’t top the CBI due to their large migrant populations. Instead, cities like Hefei, Zhengzhou and Huai’an score higher in brand quality, suggesting a strong appetite for premium and niche products beyond China’s megacities.

5. 3C Digital and Home Appliance Brands Dominate the Rankings

The highest-performing sectors by CBI score are 3C digital products (communications, computers, and consumer electronics) and home appliances, with scores between 75 and 85. This indicates strong consumer trust, loyalty and a high degree of brand consolidation. Beauty and personal care also show high scores, while fashion and pet care are growth categories with notable movement.

6. Niche and Emerging Categories Offer Entry Points for New Brands

Lower-scoring sectors like fashion (particularly women’s apparel), home furnishings, pet care and food show room for new entrants. These categories, with CBI scores between 39 and 60, are more fragmented, offering opportunities for emerging brands to establish themselves. Strong storytelling, digital innovation and consumer focus will be key to success.

7. Data-Driven Brand Ratings Replace Traditional Measures

CBI is built on big data, covering almost a billion active users across major e-commerce platforms. It tracks quality, not just quantity, integrating search behaviour, purchase records, customer reviews and loyalty data. Traditional methods like financial performance or consumer surveys are no longer sufficient in China’s fast-paced online retail market.

8. Migrant Worker Populations Skew Consumption Patterns

Regions with large migrant populations tend to show higher BPI (total spending) but lower CBI (average brand quality), as price remains a key factor for many lower-income consumers. This helps explain why first-tier cities underperform in CBI despite their economic strength, and why smaller cities may offer better returns for premium brand strategies.

9. Innovation is a Key Success Factor for Fast-Growing Brands

The CBI finds that 80 of the 100 fastest-growing brands in China are domestic, and many serve niche needs through innovative products and formats. These brands thrive not on scale, but on agility, responding quickly to changing tastes, launching new products, and embracing formats like livestreaming and short video.

10. A Shift from Price Wars to a ‘Race to the Top’

The broader message of the CBI report is clear: China’s e-commerce environment is maturing. Platforms, policymakers and consumers alike are encouraging a transition to value-driven competition. That means global and local brands must focus on authenticity, innovation, and perceived value, rather than racing to the bottom on pricing.

As the world’s largest online retail market, China now offers one of the most sophisticated data environments for understanding consumer preferences. For foreign brands, success increasingly depends on quality storytelling, tech-driven marketing, and a deep understanding of local dynamics, not just name recognition. The CBI shows that China’s online retail future will be shaped by quality, not quantity.

The post 10 Takeaways from China’s Consumer Brand Index: What Brands Need to Know appeared first on Focus - China Britain Business Council.

Effective since 8 April 2025, China’s instant VAT refund initiative allows eligible international visitors to receive VAT refunds directly at the point of purchase, as opposed to claiming refunds upon departure.​

The policy, which was piloted in major tourist destinations like Beijing, Shanghai, and Shenzhen, has now been expanded across the country. Foreign tourists (non-resident status will be verified through passport and visa) can obtain immediate tax rebates by presenting their passports at designated tax-free retailers equipped with digital invoicing systems. The hope is that this streamlined process will not only enhance the shopping experience but also encourage tourists to spend more during their stay.​

Retailers participating in the programme are required to be registered under China’s Tax-Free Retail Programme and must operate digital invoicing systems integrated with the State Taxation Administration’s platforms. The policy stipulates a minimum eligible purchase amount of RMB 500 per shop, per day, with refunds applicable only to eligible goods and potentially subject to final customs checks.​

According to China Briefing, refunds will be based on standard formulas. For example, on a RMB 1,000 purchase with a 13% VAT and an 80% refund rate, a tourist would receive around RMB 92 back.

The implementation of this policy aligns with China’s broader economic strategy to boost spending in the local economy amid global trade tensions. By simplifying the tax refund process, like it has also done with its visa requirements, China hopes to attract more international tourists and enhance their spending within the country. In 2024, the country recorded 64.88 million border crossings by foreign nationals, marking an 82.9% increase year-on-year. The first quarter of 2025 saw 17.44 million crossings, up 33.4% compared to the same period in 2024.​

According to the China Daily, economists project that inbound consumption in China could generate between $1.7 trillion (£1.2 trillion) and $4.5 trillion (£3.3 trillion) over the next decade. The instant VAT refund policy is expected to play a significant role in achieving this target by making shopping in China more attractive to foreign visitors.​

However, the success of this policy hinges on widespread retailer participation and the robustness of digital infrastructure to handle real-time transactions. Experts suggest that ensuring that a broad range of shops and goods are integrated into the refund programme, along with leveraging technologies like artificial intelligence (AI) to boost the efficiency of processing, could further enhance the shopping experience for tourists.​

The post China launches instant VAT refunds for foreign tourists appeared first on Focus - China Britain Business Council.

Traditionally, second-hand or vintage apparel was not thought to be desirable for the average consumer in China, especially during the economic good times of the past few decades. However, the popularity of second-hand, resale and pre-owned goods platforms has taken off in recent years, especially among Gen Z shoppers, driven by growing environmental concerns and depressed consumer confidence caused by rising unemployment and the ongoing real estate crisis.

Data show that the value of the second-hand goods market rose from RMB 300 billion (£32 billion) in 2015 to RMB 1.05 trillion (£112 billion) by 2020, and according to a 2021 report released by consulting firm Frost & Sullivan and Tsinghua University’s Institute of Energy, Environment and Economy, it is expected to reach nearly RMB 3 trillion (£320 billion) in 2025. Luxury resale, in particular, is having a moment, with many sellers successfully using platforms like Douyin and Xiaohongshu to boost their sales.

China also has a number of popular second-hand apps, including Plum (Hongbulin), Alibaba-owned Idle Fish (Xianyu), and Tencent-backed Zhuan Zhuan, which appeal to the well-established e-commerce habits of Chinese consumers. Idle Fish and Zhuan Zhuan are consumer-driven marketplaces (similar to Vinted or Depop), while Plum manages the whole consumption process, from authentication for luxury goods to photography to logistics.

In October 2024, Zhuan Zhuan acquired Plum, signalling a shift in the second-hand e-commerce sphere. The combination of Plum’s luxury fashion expertise and Zhuan Zhuan’s authentication expertise (Zhuan Zhuan previously mainly focused on pre-owned electronics, in which authentication and testing is particularly important) could create the platform that finally takes the lion’s share of the second-hand luxury market in China. It will also create further challenges for international second-hand luxury platforms, which have so far struggled to thrive in the Chinese market.

What is driving the growing appreciation of second-hand clothing and goods?

Pre-owned luxury goods are driving a lot of growth in China’s second-hand market, with resale luxury alone predicted to grow to RMB 217 billion by 2025 (£23 billion). As in most countries around the world, the excitement of finding a desirable bag or pair of shoes at a more accessible price is a big reason why many Chinese consumers browse second-hand apps or stores. Moreover, savvy Chinese consumers understand that a high-quality luxury purchase – a Hermès Birkin bag, for example – may even appreciate in value as the years go by.

However, second-hand luxury goods platforms have always struggled with questions about authenticity and counterfeiting. A survey by iiMedia Research found that lack of trust and fear of receiving counterfeit goods stopped over 30% of people from using second-hand platforms. In response, in March 2023, Idle Fish bolstered its authentication capabilities, allowing users to authenticate over 18 million different items in as little as eight hours.

Beyond luxury goods, a growing awareness of the environmental impact of consumerism – especially among Gen Z/younger millennial consumers – is leading conversations about second-hand clothing in China.

A June 2022 consumer survey by PwC showed that 34% of Chinese consumers “often” or “always” agree that a business’ environmental actions influenced their decision to buy – in the US, this figure was just 29%. The Covid-19 pandemic also seems to have accelerated this trend. For example, a KPMG study in 2021 found that since the beginning of the pandemic, 65% of consumers from Greater Bay Area cities have become more conscious of a product’s origins.

Idle Fish claims that the platform and its users reduced three million metric tonnes of carbon emissions over the past year by shopping second-hand instead of buying new.

However, as Zhang Na, founder of sustainable fashion brand Reclothing Bank, pointed out in a recent interview with Tong, second-hand and vintage clothing is also an outlet for creativity and self-expression. “[Previously], the marketplace was conditioned to encourage those consumers [born in the 70s and 80s] to express themselves through luxury brands and a pursuit of upward mobility,” she says. “Now, the new generation of consumers care more about their own unique experiences and identities.”

What are the implications for British brands?

Chinese consumers may be cutting back on new luxury purchases, but the rising popularity of second-hand shopping also presents opportunities for British luxury brands. Effective storytelling about heritage and craftsmanship can encourage consumers to view a brand’s products as an investment. Brands can also consider providing authentication services to ensure that the second-hand products circulating in the market uphold brand standards.

Moreover, this trend emphasises the importance of incorporating conversations about sustainability into marketing in China in an authentic way. This can include working with influencers or key opinion consumers (KOCs) who talk about sustainability.

Moreover, it underscores that Chinese consumers are cost-conscious but willing to spend money on high-quality items.

The post The rise of second-hand shopping platforms in China appeared first on Focus - China Britain Business Council.