China’s decision to reduce or remove some retaliatory tariffs has encouraged a cautious optimism among British businesses. Yet while the trade climate appears to be improving, brands entering or re-entering the Chinese market are faced with the more complex challenge of navigating a complex consumer ecosystem shaped by policy shifts, cultural expectations and rising nationalism.

The reality is that while some trade barriers have lowered, others, especially those linked to regulation, culture and politics, remain significant.

Regulatory headwinds

China’s business environment has become more tightly governed in recent years. Foreign firms must now comply with a range of new requirements, from data privacy and security laws to investment restrictions and evolving digital content regulations.

Entire industries have undergone sweeping regulatory changes. From livestream ecommerce to education, the rules are continually being rewritten—often at short notice and with opaque enforcement. Understanding these changes is critical for British brands seeking market entry or expansion.

“In an unstable environment, I believe in a ‘Ready, fire, aim’ approach. Move quickly, test early, then refine your strategy. Those who wait for certainty may miss the window,” says Yang Ding, Founder and Director of New Silk Route Digital.

New Silk Route supports British brands across sectors such as sport, education and culture. Their work involves localising campaigns for Chinese audiences through livestreaming, influencer partnerships and culturally attuned storytelling. “It’s not just about exporting products,” Yang adds. “It’s about exporting values, and doing so in a way that resonates locally.”

Cultural literacy and soft power

British culture retains a powerful pull for many Chinese consumers. From the Premier League to Harry Potter, the UK continues to enjoy strong cultural cachet. But audiences today demand more than surface-level branding. They want relevance, authenticity and an understanding of what truly matters to them.

This was evident in the years leading up to the pandemic, when tourism was a central pillar of UK–China engagement. Public-private collaboration enabled large-scale, coordinated efforts to attract Chinese visitors to Britain’s regions.

“Before the pandemic, when China was a key visitor market and the UK government was investing heavily to keep Britain competitive, we had the opportunity to work with some of Britain’s most popular tourism destinations,” says Meimei Zhao, Founder of Variety Plus. “One standout project was in collaboration with London & Partners, where we supported the development and launch of tourism products designed specifically for the Chinese market — connecting London and Manchester with surrounding regions.”

Variety Plus helps UK and European brands expand into China, and Chinese brands go global. Zhao credits the success of these campaigns to the Discover England Fund — a £40 million government initiative that united airlines, hotels, attractions, and metro mayors around a shared vision. “It was a strong example of what’s possible when public and private sectors align,” she says. “Sadly, in the absence of sustained, large-scale funding for multi-year programmes, initiatives of this scale have become much harder to deliver.”

Despite this, British institutions and brands continue to foster cultural links through partnerships, creative collaborations and targeted campaigns — especially in education, design, heritage and lifestyle.

Shifting consumer dynamics

Today’s Chinese consumers are more value-driven, digitally fluent and locally proud. While international brands are still welcomed, especially in sectors like skincare, nutrition and premium fashion, they face stiff competition from high-quality domestic players.

British brands must bring more than heritage. They need relevance and adaptability, especially online. Digital ecosystems such as WeChat, Xiaohongshu and Douyin dominate daily life. Brands that localise their presence within these platforms are best placed to build lasting engagement.

Live commerce and influencer-led marketing are no longer optional, they’re central to the brand discovery journey. But execution matters. Chinese consumers are sensitive to tone, aesthetics and messaging. A misstep can be costly, while a well-executed campaign can deliver exponential returns. “Influencers in China are not just marketers,” says Yang Ding. “They’re cultural translators. The right partnership can open doors that advertising alone never will.”

Some of the most successful British brands in China today are those that combine product excellence with credible storytelling. This often involves deeper collaborations with local communities, creators and cultural tastemakers.

Political context and risk

While trade relations may be warming in some areas, wider UK–China relations remain complex. Issues such as technology, national security and academic exchange continue to shape the bilateral relationship. And for brands, politics cannot be ignored.

Chinese consumers are increasingly attuned to perceived slights, whether real or manufactured. Misjudged campaigns, poorly timed statements or partnerships with controversial figures can quickly spark backlash. State media and social platforms can amplify reputational risk within hours.

As a result, many brands are treading carefully. Some are pivoting to lower-risk sectors, such as health and wellbeing, education technology or sustainability. Others are investing more in market intelligence and crisis planning.

Still, there are windows of opportunity. Regional governments in China remain enthusiastic about foreign investment, particularly when it brings innovation, jobs or exports. British firms with a clear offer and flexible delivery models can still gain traction—if they act decisively. “We are in an era where agility beats certainty,” says Yang Ding. “It’s no longer about finding the ‘perfect’ strategy. It’s about learning fast, acting local, and building real human connections. That’s how you build brand equity in China today.”

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

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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.

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In China’s digital landscape, Douyin and WeChat dominate as leading platforms, each offering unique pathways to over a billion users. Their approaches to engagement, commerce and storytelling differ significantly, making them essential for brands aiming to tap into China’s lucrative market. With Douyin’s short-video focus and WeChat’s mini-programs, these platforms redefine how global businesses connect with Chinese consumers.

Douyin, launched in 2016 by ByteDance, serves as China’s counterpart to TikTok, a short-video platform with over 750 million monthly active users. It thrives on creative, 15-to-60-second clips, including dance challenges, comedy skits, and beauty tutorials, captivating a young, urban demographic, primarily aged 16 to 30. Its algorithm excels at delivering addictive content, keeping users engaged for over two hours daily. For brands, Douyin’s strength lies in its viral potential and integrated social commerce. L’Oréal Paris, for example, leveraged Douyin’s livestreaming to generate millions in sales through KOL-led beauty tutorials. Douyin is a prime channel for fashion, beauty, and lifestyle brands aiming to ignite trends and drive sales.

WeChat, developed by Tencent in 2011, operates as a super-app with over 1.3 billion monthly active users. It functions as a digital ecosystem, integrating messaging, payments, and mini-programs, lightweight apps embedded within the platform. Unlike Douyin’s high-energy videos, WeChat emphasises deeper engagement through long-form articles, private group chats, and official accounts. Luxury brand Bottega Veneta utilised WeChat to launch a Lunar New Year short film, forging emotional connections with affluent users. WeChat’s mini-programs transform brand engagement, offering gamified shopping experiences that enhance retention. This versatility makes WeChat ideal for brands prioritising loyalty over rapid virality.

The British luxury brands excelling in their China marketingThe platforms’ audiences diverge notably. Douyin attracts a youthful, trend-driven crowd, with a 55% female majority concentrated in Tier 1 and 2 cities like Shanghai and Beijing. These affluent, educated users eagerly embrace trendy products. Burberry, a British luxury brand, could harness Douyin’s platform by showcasing its tartan scarves or trench coats in short, visually striking videos tailored to this fashion-forward audience. Although specific Burberry campaigns on Douyin remain undocumented, its success on Tmall suggests strong potential. WeChat, conversely, spans diverse age groups and regions, including urban millennials and rural seniors. Its loyal users engage deeply through group chats or mini-programs. Jaguar Land Rover, a British automotive leader, could leverage WeChat’s mini-programs to offer virtual test drives or exclusive content, appealing to China’s high-net-worth car buyers. While specific Jaguar campaigns on WeChat lack documentation, its focus on China’s luxury market aligns seamlessly.

Douyin’s advantages include high engagement, viral reach, and a commerce engine that converts viewers into buyers. However, creating consistent, high-quality videos demands significant resources, and success depends on mastering Douyin’s algorithm, which favours established accounts. Its young audience also limits appeal for brands targeting older demographics, and China’s strict content regulations require careful compliance. WeChat, by contrast, offers unmatched flexibility, supporting diverse content through official accounts. Louis Vuitton’s “Mah Jump” mini-program game exemplified blending fun with brand storytelling. Yet, WeChat’s slower virality and complex setup, particularly for mini-programs, pose challenges. Its mature audience may also feel less trendy compared to Douyin’s Gen Z energy.

For brand alignment, Douyin vs WeChat depends on objectives. Douyin excels in awareness and sales, as seen with Dior’s short videos promoting entry-level luxury to millennials. British brands entering China could adopt similar strategies, using Douyin’s livestreaming to showcase products in real time. WeChat, however, shines for retention and niche engagement. Educational or travel brands can utilise mini-programs for bookings or guides, while luxury brands like Bottega Veneta foster communities through rich content. WeChat’s closed-loop ecosystem drives 30% higher customer retention than standalone apps. British brands must prioritise localisation, including Mandarin content and cultural sensitivity, to thrive on either platform.

Navigating Douyin vs WeChat requires embracing their distinct dynamics. Douyin’s energetic pace suits brands ready to engage with trends and invest in video content. WeChat’s depth benefits those prioritising relationships and innovation. Whether a British brand like Burberry amplifies its presence on Douyin’s viral platform or Jaguar Land Rover builds a loyalty hub on WeChat, success hinges on aligning with each platform’s audience and mastering China’s digital regulations.

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The Rise of Chinese Brands on the Global Stage

Chinese brands are no longer content with dominating their domestic market. Companies like BYD, MINISO, HEYTEA, and Pop Mart are making strategic moves to establish themselves as global players. These brands are leveraging their unique cultural narratives, innovative product offerings, and strategic partnerships to capture the attention of international audiences.

For instance, BYD, the Shenzhen-based electric vehicle (EV) giant, has been aggressively expanding its global footprint. In 2024, BYD replaced Volkswagen as the automotive partner for the UEFA European Football Championship, a move that significantly boosted its visibility in Europe. The company’s strategic use of sponsorships, flagship stores, and digital advertising has helped it position itself as a serious contender in the global EV market.

Similarly, Pop Mart, the Chinese collectibles retailer, has transformed into a cultural phenomenon, particularly in Southeast Asia. With its beloved character LABUBU gaining popularity among influencers, Pop Mart has successfully tapped into the region’s pop culture zeitgeist. The brand’s overseas revenue surged by 440% in 2024, underscoring its growing global appeal.

Collaboration: A Gateway to Cultural Relevance

Collaborations between Chinese and Western brands offer a unique opportunity for brands to reinterpret their identities through a cultural lens, creating products and experiences that resonate with diverse audiences.

A standout example is the collaboration between MINISO and the Harry Potter franchise. In October 2024, MINISO transformed its Shanghai flagship store into an immersive Harry Potter-themed wonderland, complete with themed products and interactive experiences. The launch generated record-breaking sales, with the Harry Potter product line contributing nearly 80% of the store’s revenue on the first day. The collaboration also went viral on Chinese social media, amassing 28 million views on Xiaohongshu and 1.6 million views on Weibo.

Another notable collaboration is between the British Library and Yuewen Group, China’s leading digital literature platform. This partnership aims to bridge British and Chinese literary traditions by introducing Yuewen’s online novels to the British Library’s collection and fostering creative exchanges between writers from both cultures. The initiative highlights the potential for cultural collaborations to transcend borders and create new narratives that resonate with global audiences.

The Diaspora Opportunity: Engaging Overseas Chinese Consumers

The report also emphasises the growing importance of the Chinese diaspora as a key consumer group. With close to half a million Chinese residents in the UK alone, this demographic represents a lucrative but often overlooked market. Brands that can effectively engage with this audience stand to gain a loyal and high-spending customer base.

Tiffany & Co. provides a compelling case study in this regard. To celebrate the Qixi Festival (China’s equivalent of Valentine’s Day), the luxury jewellery brand launched a campaign targeting UK-based Chinese consumers. By collaborating with influencers and creating content that celebrated diverse forms of love, Tiffany successfully drove foot traffic to its London store and increased engagement across Chinese social media platforms.

Heathrow Airport also tapped into the diaspora opportunity with its Chinese New Year campaign, “Heathrow Together.” The campaign linked traditional Lunar New Year activities with the airport’s services, creating a culturally resonant narrative that appealed to Chinese travellers. The campaign exceeded all metrics, delivering millions of impressions and hundreds of thousands of engagements.

Competition and Localisation: The New Normal

As Chinese brands expand globally, they are not only collaborating with Western brands but also competing with them. This dual dynamic presents both challenges and opportunities for incumbent brands.

MINISO, for example, has rapidly expanded its presence in Western markets, opening over 200 stores in the US and a flagship store on London’s Oxford Street. The brand’s success lies in its ability to localise its offerings while maintaining its core identity as a provider of affordable, trendy lifestyle products. By leveraging popular IPs like Marvel and Sanrio, MINISO has carved out a niche in the competitive retail landscape.

HEYTEA, the Chinese tea brand, has taken a bold approach to global expansion by prioritising highly competitive markets like the UK and North America. The brand’s collaboration with London’s Royal Ballet and Opera during a pop-up event at the Royal Opera House exemplifies its commitment to blending traditional tea culture with contemporary experiences. This fusion of tea and theatre not only captivated overseas Chinese consumers but also introduced HEYTEA to a broader audience.

Conclusion: A New Era of Branding

The rise of Chinese brands and the growing influence of the Chinese diaspora are reshaping the global marketplace. Brands that can harness the power of collaboration, cultural relevance, and localisation will be well-positioned to thrive in this interconnected world.

For a deeper dive into these trends and more case studies, download the full report by TONG Global and CBBC.

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Chaired by Celine Tang, Retail & E-commerce Sector Lead, China-Britain Business Council, the session featured insights from David Haigh, Chairman and CEO, Brand Finance Plc; Jack Porteous, Commercial Director, TONG Global; Kai-Chuan Chao, Commercial and Cultural Partnerships, East Asia Lead, The British Library; and Antoaneta Becker, Director, Consumer Economy, China-Britain Business Council.

The panel delved into the importance of cross-brand collaborations, cultural partnerships, and the evolving dynamics of the Chinese consumer market. Here’s how it went:

Jack Porteous kicked off the discussion by introducing TONG’s new report, Navigating a Global China: Brand Opportunities in Collaboration and Competition, a resource designed to help UK brands collaborate effectively with their Chinese counterparts. “Chinese consumers are far more open to cross-brand collaborations than those in other markets, but it’s crucial to get it right,” Porteous said.

The guide, which can be downloaded here, provides examples of successful collaborations, such as Heytea’s strategy of targeting wealthy Chinese diaspora communities in cities like London. “Heytea’s approach shows how brands can leverage the diaspora to build a loyal customer base,” Porteous explained. He also highlighted Popmart’s use of key opinion leaders (KOLs) like Lisa from BlackPink to appeal to younger consumers, as well as Tiffany & Co.’s campaign, which successfully targeted Chinese consumers in London. “These examples demonstrate the power of thoughtful, culturally relevant collaborations,” he added.

Kai Chuan Chao shared insights from the British Library’s collaboration with Yuewen, a leading Chinese online content platform. “Yuewen has ambitious plans to expand in the UK, and our partnership has been instrumental in helping them achieve this,” she said. The collaboration included the Literature in the Digital Age event, supported by the China-Britain Business Council (CBBC), which explored the intersection of literature and technology. “Yuewen’s vast online readership provides a unique opportunity for UK brands to engage with Chinese consumers through digital storytelling,” Chao explained. She emphasised the importance of cultural partnerships in building bridges between the UK and China, particularly in the digital age.

Antoaneta Becker provided a strategic perspective on why brand collaborations matter in the Chinese market. “Collaborations are a powerful tool for brands that are already established and growing in the market. They’re not for those in the initial stages of market entry,” she cautioned. Becker stressed that Chinese consumers need to understand a brand’s identity before engaging with collaborative efforts. “The Chinese market has shifted dramatically since Covid-19. While quality products remain paramount, brand loyalty is harder to maintain as consumers are increasingly willing to switch allegiances,” she said. Becker urged UK brands to work harder at building and sustaining loyalty, noting that “Brand Britain” faces stiff competition in a challenging business environment.

David Haigh of Brand Finance rounded out the discussion with insights from the Global Soft Power Index report, which assesses the influence of nations as brands. “The UK’s influence has been declining due to recent political events, but there’s still significant goodwill towards British brands globally,” he said. Haigh highlighted China’s growing soft power, particularly in the business sector, and urged UK brands to capitalise on this momentum. “China’s influence is on the rise, and UK brands need to find ways to align themselves with this trend,” he explained. Haigh suggested that UK brands focus on building authentic connections with Chinese consumers, leveraging cultural and business synergies to enhance their appeal.

The session concluded with a consensus on the importance of collaboration, cultural relevance, and strategic planning in engaging the Chinese consumer market. Porteous summarised the discussion by emphasising the need for UK brands to approach collaborations thoughtfully. “The Chinese market offers immense opportunities, but success requires a deep understanding of consumer preferences and cultural nuances,” he said. As the world’s largest consumer market continues to evolve, the insights from this panel underscored the importance of innovation, authenticity, and partnership in unlocking its potential.

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CBBC’s newly appointed Chief Executive Peter Burnett opened the event, stating that China will be the single largest growing consumer market by 2030 and will contribute 40% of the worldwide spend on luxury. Quoting McKinsey, he said that by 2025, the middle class in China will amount to 800 million people and there will be 200 million high-income earners.

“Chinese consumers are happy to try new products, services and experiences,” he said. “China is not only the most attractive market but also a lab for brands looking to innovate their consumer spending.”

Burnett emphasised that in a global environment of cautious spending, the Chinese government’s recent injection of cash liquidity into the market might well lift consumer confidence. And with consumption in China accounting for just 54% of GDP, it still has room for growth before it reaches the global average of 75%.  He quoted a McKinsey report that said that consumer confidence in China is higher than in the UK, Germany, and Japan and that the Chinese consumer mindset is shifting from simple consumption to experiences and services.

“As China is our third largest trading partner and sixth largest export market, exports are a key part of the UK government’s growth strategy,” he said.

Keynote Speech: Is the Demand for Luxury Over in China?

The first keynote speech of China Consumer 2024 was given by Erwan Rambourg, Global Head of Consumer and Retail Research at HSBC, who posed the question: Is demand for luxury in China over? With extensive experience working at luxury brands LVMH and Cartier, Rambourg explained that consumers don’t buy luxury because they can afford it, they buy it because they are confident about the future.

Whilst the recent government stimulus was “better late than never,” Rambourg said it was more aimed at the lower-income market rather than the luxury market. However, he noted that ‘common prosperity’ will lift everyone in terms of income and wealth. Rambourg quoted Bloomberg in suggesting that the Chinese government might launch a second anti-corruption drive and that there might be caps on wealth generation in the financial sector, which might affect markets. However, Rambourg said that decision-makers in China are suggesting that change will happen gradually as industries such as the EV and aerospace markets take years rather than months to develop successfully.

China, Rambourg argued, is not the next Japan, which saw a flatline of luxury spending, because only a fraction of Chinese consumers have access to luxury. The aim of luxury selling is not to increase the penetration rate of a small market but to allow the market to grow and take a slice of a market that doubles in size every four years.

Chinese consumers are waiting it out – they have cash but will only spend it when they are more confident. Rambourg also said that there has been a problem with ‘greedflation’, where brands hiked prices too high post-COVID when the demand was greater than supply. The spring/summer 2025 season will be when many luxury brands launch new products at more manageable prices, allowing the stepping stone pricing to come back into play.

Keynote Speech: Four Key Consumer Tribes in China

In the day’s second keynote speech, Zarina Kanji, Managing Director for UK and Europe at WPIC Marketing and Technologies, delved into the concept of ‘consumer tribes,’ highlighting how social commerce on platforms like Douyin (China’s version of TikTok) is reshaping China’s retail landscape.

Kanji identified four key consumer tribes shaping this dynamic market.

1. The Aesthetics Tribe consists of health and beauty consumers, a sector valued at £232 billion. Post-COVID, sales of makeup have surged 64% year-on-year on Douyin. Brands like Suva Beauty are thriving with vibrant colour cosmetics, while fine jewellery and sun care have risen by 252% and 61%, respectively. Increasingly, AI influencers are instrumental in reaching young consumers through 24/7 livestreaming.

2. Homemakers prioritise family and home, with a sector now worth £9.1 billion. These consumers favour sustainability and quality, with the home hygiene and appliance markets growing by 12% year-on-year to £53 billion. Brands like Vitamix are capitalising on this trend by targeting busy mothers, while micro-influencers are becoming trusted voices over traditional key opinion leaders (KOLs).

3. Pet Parents are a burgeoning tribe, as the Chinese pet market has grown 22% year-on-year, reaching £75 billion. With over 220 million pets in more than 100 million households, there remains significant room for growth in pet care products. Tmall dominates this market with a 70% share.

4. Vitality Seekers focus on health and wellness, a sector projected to reach £39 billion, driven by urban residents engaged in sports and outdoor activities. Social media platforms like Xiaohongshu amplify shared experiences, resulting in an 89% increase in related sales on Douyin. Brands such as Lululemon are seeing success, with the wellness sector expected to double to £69 billion by 2030.

As these consumer tribes evolve, understanding their unique characteristics and preferences will be crucial for brands looking to thrive in China’s dynamic market.

Panel Session 1: Chinese Consumers: Navigating Subcultures and Tribes

Continuing on the theme of Kanji’s keynote speech, during a vibrant panel discussion on China’s consumer subcultures and tribes – hosted by Antoaneta Becker, CBBC’s Director of Consumer Economy – industry leaders from various sectors shared insights on navigating consumer subcultures and enhancing brand presence in China. Representatives from brands including Jaguar Land Rover (JLR), Wedgewood, and Grass & Co. explored how British companies can tap into China’s vast, rapidly evolving landscape while adapting to local demands and trends.

Zarina Kanji, formerly with Tmall and now at WPIC, highlighted the prominence of health and beauty products in China, underscoring the country’s rapid development as a fertile ground for experimentation. She noted, “Everything you learn in China you can bring back globally because China is the biggest, fastest, most advanced market, and can set your global business.” This adaptability was echoed by Ben Grass, founder of Grass & Co., who identified China as the ideal testing ground for his supplement brand, which operates within a £50 billion market. Grass targeted specific demographics, such as students for brain function products and women for sleep aids, successfully navigating the complexities of the Chinese market by leveraging KOLs and clinical trial results.

Freda Wang, EVP of Communication and Customer Experience, JLR China, shared how China has become the brand’s top market, surpassing the US. However, she noted that while growth was notable between 2012 and 2019, challenges have emerged in recent years. Wang discussed JLR’s strategy to reshape its traditionally masculine image in China by crafting culturally immersive experiences. Initiatives like the Range Rover House in Chengdu blend everyday shopping with traditional tea culture and bamboo sculptures, resonating with local consumers. Highlighting the importance of heritage, she noted Defender enthusiasts travelling from China to the UK for a special anniversary event, showcasing the brand’s legacy.

Sjoerd Leeflang, Vice President, Wedgwood, Fiskars Group, emphasised the necessity of speed in China’s business environment, revealing that the brand has opened 29 stores in the country, each taking half the time to establish compared to other regions. However, the pressure to frequently release new products poses significant challenges for a heritage brand like Wedgewood, known for its meticulous production process. Wedgewood, too, leaned into its British heritage through live-streaming campaigns that emphasise the craftsmanship behind its Made in England products.

In summary, these industry experts emphasised that success in navigating China’s consumer landscape hinges on a delicate balance of speed, scale, and cultural sensitivity.

Fireside Chat with Barry Delehanty, Director of Commercial Sales & Convenience, The John Lewis Partnership

In a fireside chat hosted by Peter Burnett, Delehanty discussed the approach Waitrose has taken when expanding into the Chinese market. Drawing from successful operations in Hong Kong, where consumers showed a strong demand for imported goods, Waitrose gained confidence in entering mainland China despite facing regulatory challenges.

To navigate these barriers, the company leveraged cross-border e-commerce, allowing it to bypass stringent food import regulations and efficiently introduce its products. Initially focusing on items that had performed well in Hong Kong and Singapore, Waitrose expanded its offerings to include health and beauty products, with honey emerging as a standout due to its perceived health benefits. However, scaling this segment was hindered by regulatory requirements like bottling certificates.

Distribution challenges also arose, prompting Waitrose to temporarily scale back its efforts. Nevertheless, the company is poised to re-enter the market, with popular products such as shortbread, tea, and whisky appealing to Chinese consumers’ interest in British goods.

Looking ahead, Delehanty emphasised the importance of offering complete cultural experiences, like partnering with brands to promote afternoon tea, while adapting to the fast-paced retail landscape. He concluded that maintaining British heritage is essential to Waitrose’s brand identity in China.

Panel Session 2: The Era of Emotional Marketing

As local Chinese brands become increasingly competitive, foreign companies are learning to adapt by appealing to consumer emotions, building communities, and leveraging new platforms. A panel of industry experts discussed the opportunities and challenges they face, as well as the importance of connecting with consumers on a deeper, emotional level.

In this engaging panel discussion, host Ran Guo, Director of Consumer Economy – China, at the CBBC, noted that foreign brands face more competition as Chinese companies increase their share in the market. Yet, some foreign companies still see immense growth potential. Christoffer Sellin, Chief Commercial Officer at Brompton Bicycle, emphasised that their footprint in China is relatively small, giving them room to grow, with double or even triple-digit increases. Although Brompton bikes are handcrafted in London, they sell more than just a bike – they sell a lifestyle, explains Sellin. Through community-building efforts like the Brompton World Championship and customer-led clubs, Brompton has created a passionate following. The product isn’t just a bike; it’s a symbol of culture and community.

Similarly, Nick Parker, International Development Director at Holland & Barrett International, discussed Holland & Barrett’s success through cross-border e-commerce. By testing and learning, they are finding new consumer groups, and the flexibility of cross-border trading allows them to adapt products for China without fully entering the direct market. Parker also highlighted the role of authenticity in building consumer trust, mentioning live-streaming from both internal staff and external consumers to engage Chinese consumers.

The conversation also touched on the power of influencers in China. Amy Zhong and James Smith, a UK-China influencer couple, shared how they use their platform to connect with followers not just as marketers, but as relatable consumers. People, they said, are looking for authenticity and a human connection, which is essential for building trust in an era where brands need to prove their worth.

Simona Liu, Creative Director of Melt Season, a Chinese perfume brand, discussed the vast opportunity in China’s perfume market, where penetration is only 5%. By targeting Gen Z consumers with high-end yet affordable perfumes, the brand aims to establish itself in a market traditionally dominated by Western companies.

Throughout the discussion, a key theme emerged: brands must stay true to their heritage while remaining locally relevant. Whether through live events, influencer collaborations, or cross-border e-commerce, success in China relies on building trust, emotional connections, and offering products that resonate deeply with the consumer.

Panel Session 3: The Future is Phygital

As China’s consumer market evolves, brands are finding new ways to blend the physical and digital worlds, creating a “phygital” shopping experience. For the third panel of the day, Jing Zhang, Global Editor in Chief of Jing Daily and Jing Meta Channels hosted a selection of industry experts discussed this trend, focusing on how brands are using technology to deepen consumer engagement and enhance both online and offline shopping.

Kristina Hui, Head of Business Development, Alibaba highlighted China’s tech-savvy consumers, who are far more engaged with live streamers and digital avatars than their Western counterparts. In China, it’s common for people to make purchases during live streams, while in markets like the UK, shoppers prefer interacting with physical products before buying. “In China, VR and AR are becoming mainstream tools for shopping,” Hui explained. Alibaba is leading the charge by providing immersive and realistic shopping experiences that combine both digital and physical elements. Digital avatars, for example, serve as personal shoppers, helping users try on different products and providing personalised recommendations.

Scarlett Zhao of Pop Mart, a Chinese collectibles brand, spoke about the rise of IP-based products and how the brand has developed a unique, engaging environment for their customer base, which consists mainly of 18 to 29-year-olds. “Our presence on social media, like TikTok and Instagram, allows us to engage with customers through user-generated content (UGC),” Zhao said. Pop Mart also leverages the popularity of blind boxes, mystery items that users can unbox in a digital or physical format. The brand’s strategy creates a strong social media community, where users can share, swap, and even resell their collectibles. To ensure authenticity, Pop Mart integrates NFC chips, allowing buyers to scan and verify the provenance of their products.

Laurent Taisne, founder of luxury tech brand Totemist, introduced a unique concept that merges emotional memories with physical objects. Their lipstick products are embedded with NFC chips, which can store personal data like photos, text or audio. “We aim to give consumers a way to preserve and access personal memories through beautiful, physical objects,” he explained. This “phygital” approach allows users to tap the product on their phones, instantly accessing private memories linked to their cherished items.

As digital avatars, AR and NFC technologies become essential to the shopping experience in China, brands are finding creative ways to build communities, enhance personalization, and bridge the gap between the physical and digital worlds. This shift is not about replacing traditional retail but about creating a richer, more immersive experience for consumers.

Brand Spotlight: ARgENTUM

Ahead of the event’s afternoon panel sessions, Joy Issacs, founder of British beauty brand ARgENTUM, told the story of her brand’s growth in China and used the case study of how they evolved their marketing strategy and ad campaigns, utilising Chinese celebrities to target the Chinese audience. 

The Douyin Playbook: Unlocking China’s Social Commerce Potential

In today’s competitive Chinese market, brands are embracing platforms like Douyin to tap into the booming world of social commerce. At one of the event’s breakout sessions, Demi Shi, Head of Brand Partnerships, Douyin E-commerce Global, and Peter McMath, Chief Revenue Officer, WPIC, shared insights into how brands can grow in China using Douyin’s unique ecosystem.

Shi explained the benefits of using Douyin’s cross-border e-commerce platform. Unlike traditional routes, brands can sell products without fully registering in China, bypassing complex regulations like China Food & Drug Administration (CFDA) registration. The key? Tapping into Douyin’s vast audience of 600 million users who spend around two hours a day consuming content. Douyin’s algorithm accurately matches users with products through influencer-driven content and livestreaming.

McMath highlighted the shift in consumer behaviour. For years, platforms like Alibaba dominated the e-commerce space thanks to risk-free shopping. However, Douyin has introduced a more interactive way to engage customers through content-driven shopping. This approach allows brands to tell their stories in 30-second videos, building emotional connections with consumers.

To succeed on Douyin, Shi suggested brands follow a three-step approach:

1. Offer quality products that solve problems for Chinese consumers.
2. Tell a compelling story through digital content.
3. Be ready for rapid demand, as viral content can sell out products within hours.

Both panellists agreed that having a solid business plan is essential. Brands need to stay agile, adapt quickly to trends, and ensure they have sufficient stock for potential viral hits. Partnering with experts on the ground in China, like WPIC, can help brands navigate this fast-paced market.

Looking ahead, the future of livestreaming on Douyin looks promising, with AI-driven innovation already transforming the landscape. While AI streamers run 24/7, brands must remain vigilant for the next breakthrough in social commerce.

Hong Kong: The Future of Cultural Tourism and Experiential Retail

Hong Kong is emerging as a dynamic hub for cultural tourism and experiential retail, according to industry experts at a recent panel hosted by Daisy Ip from Invest HK. The discussion focused on the evolving retail landscape, highlighting how innovation and sustainability are shaping consumer experiences.

James Dwyer, Creative Director of Lumsden, which creates iconic spaces for international brands, museums, and attractions, emphasised the need to bridge the gap between culture and commerce, with new pavilions offering spaces for families to engage with art. His key message: storytelling is crucial for meaningful brand connections, especially in fast-paced markets like Hong Kong and China.

Daniel Poppleton, International Director, Whittard of Chelsea, with 15 years in Hong Kong, noted that while heritage remains central to their brand, adaptation is key. They are exploring new taste profiles, local sourcing from Taiwan, and the role of Britishness in their identity. The competitive market demands both speed and quality.

Robert Lockyer, Founder & COO, Delta Global praised Hong Kong’s innovative retail spaces like K11, but stressed that sustainability is no longer optional. Authenticity and constant innovation are essential, particularly in a market where consumers increasingly prioritise transparency and eco-conscious practices.

With Hong Kong serving as a gateway to mainland China, all speakers agreed on the importance of localisation, digital integration, and staying attuned to local consumer preferences for long-term success.

Creating a China Strategy in the ‘New Normal’ Business Environment

In today’s business landscape, navigating China’s vast market requires careful planning and a deep understanding of its unique dynamics. Claire Urry, CBBC’s Chief Commercial Officer, hosted industry experts who offered insights into creating a successful strategy in this “new normal”.

Kristina Koehler Coluccia, Head of Business Advisory at Woodburn Accountants and Advisors, pointed out that many of the challenges businesses face in China have been consistent for over two decades. Issues around intellectual property, trademark registration and contract enforcement remain crucial. For companies entering the market, Kristina stressed that compliance with Chinese regulations, especially for food and beverage (F&B) sectors, is non-negotiable. She also highlighted the importance of partnering with Chinese law firms and ensuring contracts are enforceable under local law.

CBBC’s Ran Guo advised brands to view China as a continent rather than a country, emphasising the importance of finding an exclusive distributor. Multiple distributors can lead to price wars, she warned. The key to success is establishing long-term partnerships with importers who understand the market and are invested in a brand’s growth.

Lee Fisher, Head of International at Hayman Distillers, echoed this sentiment, sharing his own experience of working with a trusted importer for over 13 years. Fisher emphasised the importance of tailoring business models to fit the Chinese market. For example, while gin is consumed by a slightly older demographic in the UK, in China, it appeals to younger consumers, mostly women. He urged brands to understand their unique positioning in China and to build genuine connections with their local partners.

For Nick Stratton, Sales Director at Nurture Brands, China’s booming e-commerce sector is key. His brand, which sells coconut water, experienced rapid growth through online platforms like Xiaohongshu and partnerships with major retailers like Starbucks. He emphasised that while the retail landscape is competitive, building a strong brand image and working with trusted partners can help brands stand out in China’s crowded market.

The panel agreed on one thing: success in China requires patience and adaptability. Whether it’s finding the right distributor, building relationships, or navigating regulations, businesses must be prepared for the long haul and remain flexible in this rapidly evolving market.

Sustainability in China: The Evolving Perspectives of Companies and Consumers

The dialogue around sustainability is shifting dramatically in China, as highlighted by a panel hosted by Celine Tang, CBBC’s Retail & E-commerce Sector Lead, and featuring Jon Graham, CEO, Miller Harris Fragrance, Robert Lockyer, Founder & CCO, Delta Global, and Deb Caldow, Global Marketing Director, Diageo. Their insights reveal a growing alignment between consumer expectations and corporate responsibilities.

Graham described how Miller Harris, launched in China during the COVID-19 era, emphasises a commitment to sustainability, aiming for zero environmental impact. The brand audits its practices through external evaluations, positioning itself as a pioneer in eco-conscious luxury. Jon Graham notes that adapting to the fast-paced market is challenging, particularly for smaller businesses.

Lockyer challenged the outdated notion that luxury and sustainability are incompatible. He asserted that consumers increasingly desire brands that communicate their sustainability efforts effectively, fostering an emotional connection while using fewer resources. Notably, 96% of luxury consumers in China repurpose packaging, highlighting a cultural shift toward sustainability.

Caldow echoed this sentiment, stating that sustainability is becoming a key differentiator in purchasing decisions. However, price remains a significant barrier, particularly in varying product categories. Diageo’s “triple win” philosophy seeks to benefit people, the environment, and the business.

The Chinese government plays an active role in promoting sustainable practices, pushing companies toward more ambitious goals. As brands like Diageo mobilise their teams and innovate for the future, there is a clear recognition that sustainable practices are essential – not just for compliance but for building lasting relationships with consumers who prioritise eco-friendly products.

Fireside China: Fosun’s Global Ambitions and the Future of Chinese Consumer Trends

During the final fireside chat of the day, Elvis Liu, Global Partner at Fosun, shared insights into the company’s growth and future plans. Fosun, with assets worth RMB 800 billion globally and half of its workforce outside China, has made significant strides in international markets, including owning brands like Club Med and Atlantis.

Liu explained the role of Fosun Hive, the company’s real estate arm, which collaborates with governments to develop tailor-made sector solutions. He highlighted a cautious but recovering Chinese consumer market, with growing spending in tourism and travel. Club Med and Atlantis resorts are seeing pre-COVID highs, and Yu Garden in Shanghai experienced a 60% revenue jump in 2023, with visitor numbers tripling to 40 million.

Looking ahead, Fosun aims to bring Chinese brands abroad, with plans to open Songhelou, a Suzhou noodle store, in London’s Chinatown by year’s end. Additionally, Fosun is introducing Shehe Baijiu from Sichuan and partnering with Wolverhampton Football Club – the Premier league team they own. Liu emphasised the importance of understanding markets, leveraging digital platforms, and finding reliable partners to ensure sustainable growth, both within China and internationally.

Autumn Reception

China Consumer 2024 concluded with CBBC’s Autumn Reception, which offered a fantastic platform for high-level networking with the UK-China business community and an opportunity to celebrate the achievements of CBBC and its members. Drinks were provided by Hayman Gin and MP Gareth Thomas, Minister for Services, Small Businesses and Exports; and Bao Ling, Head of the Economic and Commercial Office at the Chinese Embassy in the UK – both gave speeches praising the work CBBC does in providing support to business between the two countries.

Hayman’s Distillery reception

The following day, UK consumer brands and marketers were treated to an interactive tour and tasting at Hayman’s Distillery in south London. The distillery – which doubles as a stylish event space and boutique – continues the legacy begun 160 years ago by James Hayman, who pioneered the London Dry style of gin. Today, siblings James and Miranda Hayman run the family-led operation, and the company became a B Corp earlier this year in a demonstration of its commitment to transparency, community and the environment.

Guests from China and the UK discussed the drink’s newfound popularity in China over some G&Ts before learning about the ten botanicals that go into every Hayman’s gin. Using pestle and mortar, the group crushed everything from juniper berries and liquorice to orange peel and coriander seeds in an attempt to get the balance right for the perfect gin – and learned quickly that it’s much harder than you might think. No wonder developing a new recipe can take dozens of attempts.

After a tour of the copper stills it was time to taste the product itself. The exact concoction that goes into Hayman’s original dry gin remains a secret recipe known only by members of the family, but more modern takes were developed in recent years, such as the Exotic Citrus gin. Lively and bright, original methods were used in its production, and no fruit juice was used. Rather, the balance of the aforementioned botanicals is played around with to add a punch of citrussy flavour. It’s clear that staying true to James Hayman’s original vision is of paramount importance to the team here – something participants agree is a highly valued quality in China. Even the brand’s sloe gin contains sloe berries from the Hayman family garden. Tradition, integrity and excellence truly can be tasted in every sip.

ARgENTUM Apothecary Reception

That evening, 30 guests including brands and influencers visited the ARgENTUM Apothecary, at their Holland Park boutique. They were treated to fragrance readings and insights from ARgENTUM on how they have evolved in the China market, including the launch of their archetype fragrances earlier this Autumn.

The event was opened by remarks from Antoaneta Becker, CBBC’s Director of Consumer Economy, who said: “without our members and friends in the sector we would not able to stage an event were we can talk about the fantastic opportunities in the China Market but also address complexities and challenges, CBBC stands by to support brands navigate this market and support you on this exciting journey”.

She then introduced our host, Joy Isaacs, CEO and Founder of ARgENTUM, who welcomed the guests and said that with the business being in its 12th year, China has become an increasingly important market for not only their business but for the beauty sector as a whole. The brand has leaned into the wellness space alongside this, by utilising natural ingredients for their products. She invited guests to explore the scents and products on offer, in particular the tarot-inspired fragrance readings, linked to the 12 archetypes. Cocktails and mocktails were supplied by King’s Hill Gin, Ty Nant and Hayman’s of London

ARgENTUM is a luxury skincare and fragrance brand that blends natural origins with cutting-edge science. They are known for pioneering silver in their award-winning skincare collection, harnessing the power of a Silver Hydrosol & DNA HP patent to deliver anti-ageing benefits and a radiant, smooth complexion. In addition to their innovative skincare line, ARgENTUM offers a collection of natural, alcohol-free fragrances called les perfumes infinis. ARgENTUM’s archetype fragrances are at least 93% from natural origins and halal certified. The brand has received widespread acclaim from the press for its exceptional skincare products and their ability to transform the texture and appearance of the skin. To discover beauty in balance, visit www.argentum.com.

The post China Consumer 2024: The Secrets of Success in China’s Dynamic Consumer Market appeared first on Focus - China Britain Business Council.

Mid-Autumn Festival, which falls on 17 September this year, is one of many occasions in the Chinese calendar that brands need to keep an eye on. Beyond their cultural significance, national holidays are also important drivers of consumption, marking rises in spending on everything from snack foods to travel as consumers enjoy time off work and connect with family.

However, in recent years, the impact of the pandemic and the economic headwinds facing China have muted spending around festive occasions as consumers take a more pragmatic outlook.

For example, sales of mooncakes – the traditional pastry associated with Mid-Autumn Festival – have been declining in recent years, as consumers avoid excessive gifting. A rising level of health consciousness is also playing a role, as mooncakes are traditionally high in sugar and fat – although healthier versions are now widely available. 

Nevertheless, many brands continue to produce limited-edition mooncake gift boxes, and these have the potential to go viral if the positioning and marketing is right. The most successful are usually a blend of recognisable branding, traditional Chinese elements and high-quality craftsmanship (whether that is in the packaging or the recipe for the mooncakes themselves). For example, Jing Daily highlights Prada’s 2024 Mid-Autumn Festival gift box, which comes with a wooden puzzle in the shape of the brand’s signature triangle that can be arranged to form moon rabbits, a mythical figure associated with the festival.

Ultimately, storytelling is key with products like mooncake gift boxes, and the goal should be to create something that feels authentic to a brand while also leveraging a sense of cultural belonging. As has been the case since the guochao trend rose to prominence in the past couple of years, products or campaigns that take a shallow approach to incorporating Chinese cultural elements will quickly be identified and criticised by Chinese consumers.

Limited-edition gift boxes are not the only opportunity for brands to make an impression during Chinese festivals.

The current generation of Chinese consumers is increasingly looking to spend on experiences rather than things during periods like Mid-Autumn Festival, with recent national holidays seeing a surge in travel (both domestic and outbound), tours and activity bookings.

According to the Global Times, online travel platform Fliggy reported double-digit growth in bookings for hotels, car hire and tickets compared with 2019 ahead of this year’s Mid-Autumn Festival, exceeding Dragon Boat Festival in June, despite both of them being a three-day holiday. Specifically, “moon watching” activities such as night cruises or nighttime visits to ancient towns are attracting large numbers of visitors, with Tongcheng Travel reporting that the search popularity of ancient town garden night tours has increased by 77% month-on-month in the past week, and the search popularity of night cruises has increased by 42% month-on-month.

Crucially, travel habits are becoming more granular and interest-based, with many Chinese travellers seeking out specific activities or experiences, such as wild camping, spa breaks or destination restaurants – an extension of hobbies they enjoy in their day-to-day lives. Platforms like Xiaohongshu are used to share detailed tips and itineraries for unusual or off-the-beaten-path getaways.

Travel brands are obviously well-placed to tap into this trend, but brands outside the travel industry can also take advantage by creating campaigns that resonate with interest-based subcultures or ‘consumer tribes’. This is by no means an easy process, but can be achieved by identifying subcultures that are authentically aligned with your brand, gathering insights on why consumers are interested in a particular subculture and working with creators and influencers within that subculture.

As China continues to evolve rapidly, staying up-to-date with to the latest consumer trends and understanding how consumption trends change throughout the year is more important than ever. To get the most out of traditional Chinese holidays like Mid-Autumn Festival, brands must combine a culturally-sensitive approach with an understanding of the latest consumer habits.

Register now for China Consumer 2024

CBBC’s flagship consumer event is a must-attend for any UK brand interested in making its mark in the Chinese market. With leading expert speakers and global brand representatives speaking on topics ranging from sustainability to social commerce to phygital retail, China Consumer 2024 will be packed with insights relevant to a wide range of brands across all sectors.

The post How to Approach Mid-Autumn Festival Marketing appeared first on Focus - China Britain Business Council.

In September 2023, Chinese baijiu brand Kweichou Moutai, one of the world’s largest spirits companies, launched collaborations with Chinese coffee chain Luckin and international chocolate brand Dove that took the market by storm. What can other brands learn from these popular promotions?

Moutai x Luckin Coffee

Luckin Coffee launched a partnership with Moutai in early September, selling a baijiu-infused latte for RMB 38 (£4.27) per cup (although discounts usually made it around RMB 19). Despite many being sceptical of the coffee/baijiu mashup, consumers still flocked to Luckin in their millions. According to Luckin, 5.42 million cups of the coffee were sold on the first day of launch, with sales topping RMB 100 million (£11.2 million).

Founded in 2017, Luckin Coffee was a venture capital darling, leveraging ultra-cheap prices and quick delivery to win over Chinese consumers. The company took a hit in autumn 2020 after it admitted to fabricating over USD 300 million in earnings and was delisted from US markets, but has since bounced back with a vengeance, surpassing Starbucks in terms of income and number of stores by mid-2023.

Moutai x Dove

Moutai quickly followed up its Luckin partnership with a collab with Mars-owned Dove chocolate. The baijiu-filled chocolates launched on 16 September priced at RMB 35 (£3.95) for a box of two pieces or RMB 99 (£11.12) for a box of six, and sold out within minutes. Since then, unauthorised merchants have been flipping the chocolates on e-commerce platforms for several times the RRP. And the demand wasn’t just due to a trendy product drawing attention online; feedback from consumers was overwhelmingly in favour of the product, with some even suggesting making it a permanent addition to Dove’s offerings in China.

Analysis and implications

These collaborations indicate Moutai’s desire to broaden its market and appeal to a younger customer base. The strong spirit is traditionally associated with formal banqueting and 500ml bottles typically retail for upwards of RMB 1,500 (£168) a bottle, putting it out of the reach of many consumers.

However, the success of these collaborations isn’t just an indicator of Moutai’s willingness of to innovate; it also sheds light on the evolving tastes and preferences of Chinese consumers.

Young Chinese consumers have an experimental palate
The younger Chinese demographic, influenced by global trends yet deeply rooted in their cultural heritage, are always keen to sample new products and flavours, especially when they combine familiar elements in unexpected ways. This is especially true for low-priced products like soft drinks, sweets and savoury snacks, as the risk of purchasing them is significantly lower. Brands in the Chinese market must constantly look for ways to innovate and launch new products to stay relevant.

Guochao isn’t going anywhere

These collaborations also reflect the continuing relevance of the “guochao” trend. Guochao, which translates to “national trend” (or can be more eloquently translated as ‘China chic’) encapsulates the rise of brands that celebrate and promote Chinese cultural identity, as well as the growing popularity of home-grown Chinese brands. Moutai’s recent collaborations reflect both sides of this trend. On the one hand, the decision to partner with Luckin rather than Starbucks aligned well with Moutai’s identity as a Chinese company and resonated with the national pride of Chinese consumers. On the other hand, marrying Western favourites like coffee and chocolate with a traditionally Chinese spirit was a smart way to integrate global tastes with local preferences.

Co-branding is an important strategy
Co-branded partnerships have long been an effective way for high-end brands to connect with a broader consumer demographic. During CBBC’s 2023 China Consumer conference, Sarah Rotherham, CEO of Fontaine Group, which owns the fragrance brand Creed, described how Creed worked on a collaboration with Chinese rap artist Benzo, embedding the fragrance into one of his songs, and with Chinese art toy ROBBi, in which limited-edition collectables were scented using Creed fragrances and sold along with non-fungible tokens (NFTs).

In conclusion, brands aiming to thrive in China’s dynamic consumer landscape need to be attuned to evolving tastes, ensuring they strike the right balance between innovation and cultural sensitivity.

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Sportswear retailers have turned their attention to China, and for good reason. Although the US continues to be the largest market for sportswear worldwide, with a market size of US$45 billion, its expansion rate is only 2.5%. The Chinese sportswear market is expanding much faster at above 9%.

In 2021, sportswear retail sales in China reached RMB 371.8 billion (£45.02 billion), or 13.4% of the country’s apparel market. The majority of sportswear purchases in China were made online: department stores, internet retailers, apparel, footwear, and accessory experts on live streaming were among the top distribution channels.  Nike and Adidas, followed by strong local brand Anta, continue to dominate the market. Since 2017, Sketchers has risen to the fourth spot, followed by local brand Li Ning, which occupied fifth place in 2021.

What is driving the growth of China’s sportswear market?

Government investments
The Chinese government has been actively promoting physical activity among its citizens. By 2025, Beijing wants to see the country’s sports economy reach US$850 billion, making it the biggest in the world. The government has created a five-year fitness plan that would invest in sports and fitness facilities as part of its efforts to combat the growing number of health issues such as obesity and diabetes among the population. The plan called for US$225 billion in federal spending by 2020 and is targeted at teenagers to promote healthy lifestyles throughout their lives.

Rising health awareness
During the Covid-19 pandemic, consumers decided to exercise more, spent more time at home, and became more concerned about their health. In research on Chinese fitness and health trends by CBNData, 76% of respondents indicated they had begun to pay more attention to exercise and were more ready to be active after the pandemic. The time they spent on fitness and exercise apps increased by 250% in the last three years, which has naturally increased the demand for athletic apparel and gear.

Emerging brands challenging established players
Emerging businesses have been relatively successful in carving out a position for themselves in the Chinese sportswear sector. Canadian athletic apparel company Lululemon serves as a good example, as it was able to capture a specific consumer market with its functional products thanks to the rising popularity of sports like yoga and Pilates. On the other hand, Allbirds and Patagonia, two brands renowned for using eco-friendly materials in their products and taking a strong stance on sustainable development, have become popular with the country’s environmentally conscious customers.

What are the key trends in China’s sportswear market?

Athleisure
Athleisure is a fast-developing trend in China, just like in many regions around the world. Activewear is gradually being recognised as regular attire and considered suitable for occasions outside of strictly sports-related ones. Foreign companies like Nike and Adidas – who dominate and account for one-third of the Chinese sportswear market – are now seen as high-end fashion items. Both brands have been able to have a substantial impact on women’s fashion trends in China in particular.

Rising demand for local brands
The growing interest in local Chinese brands among Chinese consumers has been well documented. Where older generations would have chosen foreign brands over domestic ones due to quality consideration, this view has now shifted. Chinese brands have increased in quality as part of the so-called “premiumisation” trend, but young customers are also paying more attention to other features.

As a result, the perceptions of domestic brands are shifting because of Chinese brands’ collaborative efforts and growing cultural assurance. For example, Anta has fuelled its success with targeted marketing campaigns and collaborations with both foreign and Chinese celebrities, including Winter Olympics star Eileen Gu.

Innovation applied to sportswear
Performance trainers are one of the most dynamic subcategories in China’s sportswear market, with current value growth of 23%. Leading players in the market are investing big in the creation of new products while keeping an eye on technical advancement. Nike, for one, has pioneered an adaptable shoelacing system with its HyperAdapt line of shoes, which electronically conforms to the curves of your foot to provide a tailored fit. Chinese company Anta invented A-FlashFoam technology, designed to offer the foot great cushioning and support while running.

Sports clothing textiles have also advanced alongside innovative footwear, particularly among boutique sportswear firms. For instance, Columbia recently advertised its athletic apparel with Omni-Heat Thermal Reflective Technology in China.

How can British brands break into China’s sportswear market?

Younger Chinese consumers now have a rekindled feeling of national pride, which has led to more local companies entering the market as less expensive alternatives to overseas brands. What’s more, the top influencers in live streaming more frequently promote domestic brands. To establish a more direct and intimate connection with Chinese consumers, global brands must localise more than ever before.

Nike is the perfect example of a localised branding strategy that works to target local consumers more effectively. In 2020 Nike debuted ‘The Great Chase’, its first Lunar New Year advertisement, at the beginning of the year. After just two weeks, the advertisement had been viewed 4.8 million times on social media.

Differentiated branding is likely to become more important, even though functionality is still a key factor in sportswear purchasing decisions. When the majority of sportswear brands are able to meet the need for functionality, what a brand presents and how it is relevant to its target customers is likely to be a deciding factor in consumer decisions. Since most brands now sell through e-commerce channels or promote products through social media platforms, this necessitates more individualised connections between brands and their targeted segments.

Call +44 (0)20 7802 2000 or email enquiries@cbbc.org now to find out how CBBC’s market research services can help you build knowledge and understanding of the Chinese market prior to investment.

A version of this article was first published as ‘China’s Sportswear Market: Opportunities and Challenges for Foreign Players’ by Dezan Shira & Associates’ China Briefing.

The post How British brands can break into China’s sportswear market appeared first on Focus - China Britain Business Council.

Solo dining restaurants with tables and chairs sectioned into individual booths like private train compartments have drawn increasing footfall from white-collar eaters in major Chinese cities over the past few years. The emergence of this kind of solo dining setting is in response to China’s growing population of singles who see dining alone as part of their fast-paced daily routine, further stimulated by Covid-19 controls.

In 2018, the number of single adults in China reached 240 million in 2018, with over 77 million living alone,  with the post-80s and post-90s generations making up the majority. This is a result of continuously declining marriage rates since 2014, coupled with a rising divorce rate, according to the Ministry of Civil Affairs.

The rise in the number of single people has driven up the demand for one-person meals. Unlike the older generations, young Chinese singles don’t show much enthusiasm for cooking by themselves. A report published in 2019 by Sinolink Securities Consumer Research Centre showed that the majority (approximately 42%) of China’s single adults “cook occasionally”, followed by over 20% who “never cook”.

Alongside the rise of solo dining restaurants, ready-to-eat and pre-cooked meals are also gaining popularity as they provide a convenient and reasonably nutritious solution. Takeaway businesses are also tapping into one-person households, adapting meal options normally enjoyed by a group such as hotpot, to versions suitable for single diners.

There has been a refashioning of services and products in the wider food sector as well, resulting in an increasing number of goods falling into the one-person meals category. Products such as self-heating hot pot and instant rice boxes recorded a year-on-year surge in sales of 80% and 800% respectively during this year’s 618 mid-year online shopping season, according to a staff member at the food department of China’s e-commerce giant Tmall.

Despite eating alone, consumers still have high expectations for the food they are eating. Consumers are interested in health value and “yi shi gan 仪式感” or sense of ceremony, fulfilling both their nutritional and emotional needs. Gone are the days when a packet of instant noodles was a solution for solo diners – replaced instead by meals with varied ingredients that cater to the diverse nutritional needs of savvy young consumers.

An advert for Xun Wei Shi’s hand-pulled biang biang noodles

One company that has been leading this transformation is Chinese pre-made dish brand Xun Wei Shi. Xun Wei Shi redeveloped the traditional concept of instant noodles into nourishing meals by incorporating ingredients such as seafood and recipes including braised chicken with red dates, a soup dish that is normally shared amongst families in China and is known for its health benefits.

Further catering to the palates of young people, the brand also introduced internet-famous dishes such as “snail noodles” (luosifen, a traditional Guangxi dish) and biang biang noodles – all designed for single diners. To enrich the dining experience, the brand also includes a small amount of semi-finished dough in their packages so that consumers can have fun hand-pulling the noodles before they tuck in.

An advert for drinks brand Rio aimed at single consumers

Tapping into the emotional aspect of eating or drinking alone is the alcoholic beverage maker Rio. The brand became a first-mover in China’s single drinking market with the debut of its Tipsy series in 2018, a line with only 3% alcohol that is dedicated to Gen Z single drinkers. Under the tagline “A Small Indulgence on Your Own”, the series includes five fruity drinks designed to be a “companion” for young single dwellers. The slogan appears to have resonated with the younger generation, with the hashtag reported to have drawn in over 270 million views on China’s largest microblogging site, Weibo, in the first week of its product release.

Trendy food brand Dan Shen Liang

Other brands have attempted to build Single Culture into their brand positioning, including the snack maker Dan Shen Liang, which literally translates to Singles’ Food. With pictures of dogs imprinted on its packaging, the brand smartly capitalises on popular Internet slang such as “single dogs” (a humorous term used to refer to singles in China) and “dog food” (a term used by singles to describe public displays of affection) while also allowing it to tap into the growing number of pet owners in China, many of whom have turned to animal friends as a cure for loneliness.

China’s young singles are pushing constant innovation in the country’s food and drink industry. The increasing number of sophisticated single diners means that any brand looking to enter the Chinese market needs to consider both their marketing narratives and the formats of their products in order to cater to the taste buds of this lucrative demographic.

Call +44 (0)20 7802 2000 or email enquiries@cbbc.org now to find out how CBBC’s market research services can help you build knowledge and understanding of the Chinese market prior to investment.

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