A new report published by Peking University, Sun Yat-sen University and Alibaba’s Taobao and Tmall, offers one of the most data-rich portraits yet of online consumption in China. The China Online Consumer Brand Index (CBI) for 2023–2025, backed by big data from nearly a billion users, reveals a sharp shift in consumer behaviour, from price sensitivity to brand-driven, quality-first purchasing.
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.
