The role of e-commerce in China’s consumer landscape

China’s e-commerce ecosystem is the primary sales driver across consumer categories, with digital platforms accounting for over half of retail sales. As the report highlights, this ecosystem includes well-known search-based platforms like Tmall and JD.com, as well as fast-growing social commerce platforms like Douyin. Tmall remains the largest, commanding 33.7% of the market with nearly 895 million daily users. JD.com follows with a focus on quality and logistics, holding a 19.9% share. Meanwhile, Douyin, with its attention-capturing blend of short-form video content and commerce, has gained substantial traction and now claims 16.9% of the market.

Notably, livestream shopping has become a popular method for purchasing goods, now accounting for 26% of all e-commerce sales, a dramatic increase from just 5% in 2019. Although pioneered by Tmall, Douyin is now leading the shift to livestream shopping, with personalised content delivery through algorithms that connect consumers to relevant products.

Key trends across consumer segments

Beauty, personal care and fashion

The beauty, personal care and fashion segments have shown robust growth in 2024. Driven by post-pandemic demand, beauty product sales increased by 6%, personal care by 2.3%, and fashion by a remarkable 14.4% in 2024. This resurgence is accompanied by trends such as creative makeup, scientific skincare, “quiet luxury” and athleisure wear.

Douyin’s social commerce approach has proven particularly effective in this sector, where the platform saw growth rates of 44% in fashion, 40% in beauty, and 26% in personal care. With its focus on visual and interactive content, Douyin connects users to new brands and trends, fostering rapid adoption of products through influencer reviews and real-time product demos. For British brands, Douyin offers an excellent platform to promote high-engagement products like colourful cosmetics and functional, trendy clothing.

Nutraceuticals, outdoor, and sports

As Chinese consumers become more health-conscious, the nutraceutical sector has seen exponential growth. The health and wellness market has grown by 12.8% to reach $874 billion (£673 billion) in 2024, with expectations that it will nearly double by 2030. Within this sector, vitamins, target supplements (for example, for bone health or aesthetic purposes), and protein powder for sports nutrition are surging in popularity.

Outdoor sports and fitness-related products have also flourished. This sector, valued at $50.9 billion (£39.5 billion), grew by 22%, with items such as cycling, camping and hiking gear gaining traction. Douyin’s role as a trend amplifier is evident here as well, with 89% growth in the GMV sports and fitness products on the platform, as is Xiaohongshu’s role as a platform for sharing tips and itineraries. Outdoor sports are becoming more accessible and appealing to a broad demographic, particularly among urban dwellers seeking both fitness and social engagement.

Pet industry

A reflection of broader lifestyle changes, the pet care industry has witnessed an extraordinary 18.3% year-over-year growth, reaching $99 billion (£76 billion) in 2024. Factors such as increased urbanisation, delayed family milestones and a shift toward “pet parenting” have driven this growth. Chinese pet owners, predominantly young urban women, are investing heavily in premium pet care products, including vitamins and grooming supplies.

Home, mother and baby

The home goods category has shown continued growth, driven by the rising demand for high-quality, convenient home improvement solutions. In 2024, online sales of appliances hit $70.2 billion (£54.1 billion), marking an 11.9% increase. Household cleaning products also saw 9.5% growth, reflecting a strong focus on cleanliness and convenience in daily life.

Interestingly, despite a declining birth rate, the mother-baby category remains robust. With a 7.3% increase in online sales, the market for baby products reached $12.2 billion (£9.4 billion). Douyin now leads this category, holding a 45.5% share, as a new generation of parents turn to social media for recommendations and product reviews from parenting influencers. Premium baby skincare and vitamin products have emerged as high-growth sub-categories, highlighting a willingness among parents to invest in their children’s wellbeing.

Strategic insights for brands entering the Chinese market

For brands seeking to capitalise on these trends, WPIC’s report underscores the importance of a multi-platform approach. Traditional e-commerce platforms like Tmall and JD.com are indispensable for product distribution and visibility. On the other hand, social commerce platforms like Douyin and Xiaohongshu offer unique, high-engagement opportunities. The success of influencer-led and livestream shopping highlights the value of content-rich, interactive marketing strategies.

Why social commerce matters

The shift toward interest-driven and social-based commerce is reshaping consumer expectations and purchase behaviours. As the report explains, consumers on platforms like Douyin are not only shopping but also seeking inspiration and community interaction. By integrating brand content within consumers’ social feeds, brands can reach potential buyers in their moments of discovery and inspiration, which significantly improves conversion rates.

Category-specific growth strategies

While social commerce should be a part of the strategy for all consumer brands in China, the most effective ways to grow and expand differ by category.

In beauty and fashion, brands should emphasise self-expression and personalisation to engage Chinese consumers effectively. For example, this could involve showcasing user-generated content (UGC) from independent makeup artists. Meanwhile, in the nutraceuticals and sports sectors, brands can appeal to rising health-consciousness by showcasing product efficacy and aligning with wellness influencers.

Key takeaways for British brands in China

China’s consumer market presents a unique blend of tradition and innovation, with opportunities across multiple sectors. The country’s evolving consumer behaviour is guided by trends toward wellness, premiumisation, and lifestyle enrichment, driven by urbanisation and changing family structures. For brands, an omnichannel strategy that encompasses both established marketplaces and emerging social platforms will be essential.

As WPIC Marketing + Technologies notes, navigating this vibrant market requires a nuanced understanding of platform dynamics and category trends. Brands that embrace this multifaceted approach and stay attuned to consumer shifts will be well-positioned to thrive in China’s rapidly evolving landscape.

The post Which of China’s consumer segments is growing fastest? 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.

The post Why China’s single diners are inspiring F&B brands appeared first on Focus - China Britain Business Council.

In the run-up to the largest China-consumer offline event of the year —China Consumer 2022 — CBBC was thrilled to introduce China Voices. Reflecting the expansive, diverse nature of China and its consumers, our extensive and varied panel of China specialists and UK brands shared their exclusive insights and unique experiences in the China market.

China Voices put our speakers in the spotlight, who shared first-hand advice on how to navigate China’s sophisticated marketplace – from achieving success and satisfying your China consumers’ demands through branding and brand aesthetics, to targeting young consumers, communicating your unique brand identity, and diversifying your retail space through concept stores.

Read on to learn more about our speakers’ secrets to success in China, and how they overcame their China market challenges and made the most of the opportunities the market has to offer:

“You can run but you can’t hide from the enormity of the China market, and the incredible opportunities it can bring. A glimpse into this super fast-paced market will change any pre-conceived perceptions and bring no doubt that this is where it is all at.

As the world’s second-largest beauty market, soon to be the first, China has played a crucial part in ARgENTUM’s global growth.

Doing business with China can be daunting at first but once you are immersed, it will inform what you do in the rest of the world. Don’t get left behind!”

Joy Isaacs, Founder & CEO, ARgENTUM Apothecary

“The mix of China’s ancient and modern, traditional and innovative, mean it’s truly intoxicating for any foreign brand with ambitions to enter, grow and win customers.

It is not enough to only embrace the China of digital nomads — brands also need to appreciate and respect China’s past. Disregarding any one of China’s many facets can leave brands in danger of committing a cultural faux pas.

Thus, it is not only the size of the China prize that merits the effort, but also the incredible opportunity to learn and innovate.”

Antoaneta Becker, Director, Consumer Economy, CBBC

“Fortnum & Mason has become synonymous worldwide with extraordinary food, joy-giving things, unforgettable experiences and exceptional service.

We are constantly creating more opportunities to connect with Chinese consumers.

With the recent shifts in consumer behaviour placing more value on brand experiences, lifestyle sharing and sustainability, we are excited to bring more authentic and engaging experiences to our Chinese consumers.”

Carmen Chiu, Regional Managing Director, APAC, Fortnum & Mason

“Should we look to China for future growth and opportunities in the luxury sector? The answer is — without a doubt — yes.

I am confident in the continued growth potential for China’s luxury industry. Coupled with a strong economic foundation, China’s luxury market is fuelled by robust demand amongst millennials and Gen Z.

Young consumers continue to have a curiosity and an appetite for premium and luxury experiences and products, however the industry is more competitive and crowded than ever.

China’s unique digital ecosystem presents challenges for foreign brands. It’s expensive and noisy. Building a brand in China takes commitment, focus and resources.”

Chloe Reuter, Founding Partner, Gusto Luxe and Founding Partner & Vice Chair, Gusto Collective

“China is a market that no business can afford to ignore, not only because of the sheer size of the customer base, but also because of the consumers’ ever-growing, insatiable appetite for new, innovative and trending products from all over the world, especially Europe and UK.

Advertising, such as live streaming, is considered a form of entertainment that draws in millions and holds attention for hours. This level of consumerism is simply unparalleled anywhere else in the world.

Yes, it has many challenges and obstacles, but the size of the prize makes it all worthwhile.”

Jake Xu, Co-founder, Shakeup Cosmetics

“Chinese consumers are unable to travel overseas due to Covid, but there is still great demand for international brands, especially in the health and wellness sector.

In order to make the most of the China opportunity, it’s important to highlight both the cultural significance of Holland & Barrett as a British brand, and localise our branding for the Chinese market.

Adapting our brand message to the trends that influence young Chinese consumers enables them to resonate with Holland & Barrett.”

Joanna Zhou, China Manager, Holland & Barrett

“In our experience, brand collaborations and being truly flexible with your IP is one of the hardest trends to accept for foreign businesses in the China market.

Despite this, the opportunities in China are exciting and endless; a partnership with an historic museum could be just as relevant as a trending children’s TV show.

Brand collaboration is now the main method of acquiring new audiences for many market leaders.”

Andrew Atkinson, Director of Insights & Research, China Skinny

“Through working with partners to develop commercial and cultural activities in China, the British Library is not only able to generate income while marking our intellectual heritage accessible to Chinese audiences of all ages, we have also learned to appreciate our collections through a different lens inspired by Chinese consumers’ energy, creativity and imagination.”

Kai-Chuan Chao, Cultural & Commercial Partnerships, East Asia Lead, The British Library

For further enquiries related to China Consumer 2022 or CBBC’s work in the consumer sector, please contact Antoaneta Becker at Antoaneta.Becker@cbbc.org

The post Why British brands should make the most of the China opportunity appeared first on Focus - China Britain Business Council.

What are Mini Programs?

Launched in January 2017, WeChat’s Mini Programs (MPs) provide an important link for user and businesses, by providing an accessible and powerful way to consume products and services through the WeChat platform. WeChat contains a variety of key features that provide personalised services such as e-commerce and mobile payments linked to social media.

WeChat ecosystem

MPs are mobile apps built for and within the WeChat platform. There are MPs for things like travel, games, food delivery, shopping, event sales and much more and they are often found through online sharing and offline QR-code scanning.

Interface of WeChat MP with services Video depicting the social applications of WeChat MPs

MPs that go viral are typically those that have an element of gamification, and use reward-based incentives as a tool to quickly scale the product.

Google China has created a viral sketching game in MP Game

Selling socially

Whilst e-commerce (especially cross border commerce) has become a hot topic among global brands entering the China market, it is ‘social commerce’ that is increasingly the new trend in the market. Gradually, more and more offline purchases are being influenced by recommendations made through socially driven, highly interactive online experiences.

This integration acts to boost the online buying and selling cycle and has given birth to an ecosystem in which commerce is embedded into social interactions and social networks have turned into multi-dimensional experience platforms.

Social networks’ potential to generate viral activity, combined with the trust these networks generate, is the key driver in motivating users to purchase products and services. It is this herd mentality, or FOMO (Fear of Missing Out), that feeds the development of particular trends and fashions.

More and more offline purchases are being influenced by recommendations made through socially driven, highly interactive online experiences.

Compared to traditional mobile websites the MPs provide a simpler user experience, increasing accessibility both online and offline. For example, scanning a QR code in a store can provide a discount code or offer from the MP.

Mobile payments are seamlessly integrated via WeChat pay, meaning no third party payment gateways are needed, which reduces fees and increases speed. And MPs have many more traffic sources including:

• MPs Nearby Feature
• Sharing to WeChat Friends
• Sharing to WeChat Groups
• WeChat MPs linking to Moment Ads
• Scanning Mini Program QR Code
• Official Account Article Syndication
• MPs linking to Official Accounts
• WeChat MPs linked with e-coupons
• WeChat Pay linking to MPs

Recently, Chinese eCommerce brands like JD.com, Meituan Dianping and Pinduoduo have been implementing even more innovative features within the MPs.

JD.com, a pioneer in social e-commerce in China. has been actively using and deploying WeChat MPs to facilitate social group buying, and have garnered an active user base in Tier 3 and Tier 4 Chinese cities through marketing incentives and education. As such activity develops the understanding Chinese users already have on how to purchase through a MP, it also better allows global brands to target their Chinese consumers.

The prevalence of social commerce, at significant scale, via a decentralised platform like WeChat, enables MPs to be an important element in the ecosystem. As this area grows, the strong and dynamic interactions between users and businesses that MPs encourage could encourage global brands to build their brand awareness and sell their products and services more creatively to Chinese consumers.

The benefits of a WeChat Mini Program presence

Access to a large user base reaching deep into new markets in China

WeChat has more than 1 billion users globally. Luxury brands on WeChat are able to reach that audience and effectively showcase their brand identity to potential Chinese customers in smaller cities, which are the future luxury hubs in China.

Clear conversion analytics and tracking

Luxury brands that engage in WeChat advertising are able to clearly track ad conversion metrics such as profile views, the click-through rate and ad conversion rate. Brands are able to utilise this information to craft effective digital marketing strategies for seasonal promotional campaigns.

Online-to-offline integrated marketing

WeChat has many features and functionalities such as WeChat official accounts, Moments Ads and Mini Programs. All these online interactions are able to be integrated into an offline environment. A luxury shopper can preview product information online through a MP, book a VIP appointment online or be invited to preview exclusive products and services offline in a speciality store.

Social interactivity within WeChat

WeChat’s biggest strength is social. Hence, luxury brands can generate a personal and interactive relationship with users through the use of social and gamified marketing tools. For luxury customers, the ability to connect to brands at an intimate level is critical. This is especially true when consumers are accessing the information digitally or through social recommendations from their friends and peers. The perceived affiliation with luxury brands strengthens overall brand engagement and loyalty.

Full control of brand identity

Luxury brands have full autonomy and flexibility in building their own brand identity on WeChat. They are empowered with WeChat’s tools to create creative and interactive content to engage luxury consumers.

WeChat features such as Brand Zone enable luxury brands to effectively illustrate their brand’s story and allows users to share exclusive content with their social networks. Other functionalities such as Digital Concierge allow consumers to directly contact brands if they have inquiries or need assistance.

Luxury brands such as Dior and Tod’s have all built up their own branded WeChat stores with an integrated suite of buying and support services. Hermes also set up a support channel on a MP to assist before and after sales support. Customers could also pre-book an appointment to view favourite items.

Five types of social selling 

Limited time offer

MPs that deploys flash sales or ‘Limited Time Offers’ generate viral interest to attract consumers. For consumers, the ability to obtain a good deal is psychologically addictive and spurs strong consumer buying desire. Such strategies will often attract a large and targeted audience, generating high volumes of brand awareness and marketing for the products being sold.

For consumers, the ability to obtain a good deal is psychologically addictive and spurs strong consumer buying desire.

This strategy works best for those luxury and premium brands that effectively display their brand identity in the MP.

A good example of this was a partnership between social influencer Mr. Bags and handbag brand Tod’s. Within six minutes of launching the WeChat MP shop, more than 300 of the US $5,000 bags were sold.

Mr. Bags partnership with Tod’s to launch on MP

Price sensitive MPs

Relying on network effects to bring traffic and awareness to the MP, brands will offer users a significant discount if they successfully share or refer to their friends. This is followed up with further rewards such as discounts and complimentary gifts if the recommended friend then purchases a product.

Starbucks successfully implemented this model of social selling with a promotion in which a customer who bought a Starbucks coffee through the MP could pass on a limited number of discount e-coupons to friends.

Starbucks China discounted offers MP

Social group buying MPs

Another strategy sees brands invite groups of friends to buy in bulk volume in order to obtain a discounted price of complimentary items on top of their purchase. Users share the MP via their WeChat Moments, WeChat Friend network and WeChat Groups to garner interest amongst their network.

This type of social selling allows large amounts of users to share offers, and by putting the brand in front of a large audience can create impulse purchases.

Pinduoduo is a master of social group buying and is very successful in leveraging the power of social recommendations to acquire users and offer products at a significantly lower price. Their target audience is predominantly price sensitive clients and this form of MP works best for low to mid-priced products and services.

Social group buying is becoming more popular

Reward points MPs

Some MPs allow users to acquire membership points when they make purchases. As with many loyalty programmes, these points can then be used to get further discounts and exclusive offers. Carrefour China recently launched a reward points programme that promoted the latest assortment of fresh produce.

It is common to see Chinese consumers scanning QR codes in store, then purchasing the item and redeeming the reward points that they have. This “Scan, Redeem and Purchase” behaviour has drastically reduced queues in the supermarket and increased overall user experience.

E-Coupon/Card MPs

The ability to integrate coupons or gift cards to MPs is useful for user acquisition, engagement and loyalty. When the JD.com group buying MP was first launched, they introduced more than 50 kinds of E-Coupons where users would be given a 100 RMB coupon if they helped acquire four new users.

JD.com launching e-coupons within their MP

Shifting trends and psychology of Chinese consumers

Growing individualism means personalisation is key

Chinese consumers are increasingly prioritising brands that offer experiential products and express individuality, so MPs that allow the personalisation of products and services are popular. Through MPs such as Digital Concierge and other Premium VIP services, brands can offer personalised products and services that cater for this growing desire for exclusivity and autonomy.

Longchamp’s MP allows the personalisation of bags, whilst the Sergio Rossi MP allows shoppers to personalise the heels on their shoes according to their size and colour preferences.

Longchamp’s MP allows bags personalisation and Sergio Rossi’s allows customisation of heels.

Scarcity of time means elevating convenience

With the development of ride-hailing, bike-sharing and food delivery services, Chinese consumers have both saved time and become instantly available to a range of products and service offerings.

The fast loading time and clear navigation features of MPs allows users to quickly access products and services. Mobike’s MP allows users to quickly detect the nearest available bike through the MP’s location features. Similarly, Tesla’s MP facilitates user access to the nearest electric charging station.

Mobike Mini Program allows users to locate the nearest available bike

Tesla Mini Program allows drivers to locate the nearest charging station

Increasing social stresses means increasing gamification

Higher levels of social stress are driving China’s youngest generations to demand more informal interactions in both the virtual and physical world. The gaming aspect of MPs allows users to interact with their friends in a fun way whilst also granting them increased access to products and services through immersive social experiences.

The viral MP game “Tiao Yi Tiao”, in which users gain points by jumping on bricks, amassed 100 million users within the first two weeks of its launch in December 2017. Nike was the first to place in game ads, which generated significant brand awareness for their Nike React campaign.

Nike Ad Placement in WeChat Mini Game – Tiao Yi Tiao (Jump)

Global shopper mind set means providing a global marketplace

Chinese consumers are now global shoppers and are increasingly fully independent travellers who prefer to plan trips themselves, which – potentially – could include recommendations via WeChat. MPs that allow Chinese consumers to shop globally and buy products and services overseas easily are increasingly important.

A good example is the DFS Hong Kong e-shop MP; users can use this to shop while they are in China and then pick up from outlets in Hong Kong with added value and convenience.

DFS Mini Program provides a global marketplace for Chinese shoppers

Advantages of using Mini Programs

User Perspective:

• Users do not need to install (or uninstall) a MP like a native app.
• Users can access a variety of functional services such as watching videos and gaming in a MP.
• Users can save data storage space in their phone as each MP takes up only a maximum of 8MB space.

Brand Perspective:

• Brands can target and leverage a massive user base of more than a billion users.
• The development lifecycle of MP is much faster and easier to prototype and iterate than an app.
• It’s easier to market, discover and promote a MP through the WeChat ecosystem using tools such as WeChat Moment Ads, WeChat Official Accounts and WeChat Pay.
• It offers the ability to dynamically connect online and offline environment (O2O) through QR code activation.
• It can assist businesses in the process of digital transformation by offering quick to start and easier prototyping of digital ecosystems.

The post What are WeChat Mini Programs? appeared first on Focus - China Britain Business Council.