This article summarises the key themes from the report, highlighting how British brands can adapt to a more cautious yet still opportunity-rich environment.

China’s economic slowdown: What it means for marketers

After decades of near-uninterrupted expansion, China’s consumer economy has slowed significantly. A growing middle class once fuelled seemingly boundless growth; now, many consumers are becoming more selective, cautious, and value-conscious. According to Totem, 2024’s consumption growth was described as “glacial”, with e-commerce sales growing modestly (12-15%) and physical retail suffering widespread closures.

British brands that are used to betting on China’s lower-tier cities for rapid growth must now adapt. Strategies in 2025 are shifting towards performance-driven marketing, precision targeting by generation and income tier, and a renewed focus on return on investment. Expansion for its own sake is being replaced with prioritised spending and cautious optimism.

Digital marketing in China: Where to invest in 2025

Despite broader economic pressures, China remains a global frontrunner in digital commerce and marketing innovation. Social commerce in particular, spanning livestreaming, influencers (KOLs), and beyond, is proving resilient. In fact, over half of surveyed brands plan to increase their social media budgets in 2025, even as overall budgets shrink.

This presents an opening for UK companies with digital expertise. Brands that understand the local tech landscape and can tailor their approach to Chinese consumer behaviours across platforms like RED, Douyin, and WeChat will be best placed to succeed. Notably, the focus has shifted from generating hype to fostering confidence and trust, underscoring the importance of credible content and community engagement.

Sentiment and spend: A reality check

The brand sentiment going into 2025 is cautious. Totem’s survey found that only 17% of marketing leaders were optimistic about the year ahead, while nearly half expected to cut their marketing budgets. Most brands are narrowing their focus to proven channels and core customer segments. Spending is being redirected away from traditional media and toward performance-driven digital and social commerce tools.

For British brands, this shift calls for prudence and agility. Success in 2025 will mean doing more with less – delivering measurable returns and tightening the link between marketing activity and sales performance.

Gen Z in China: A key demographic for British brands

One of the most significant strategic pivots in 2025 is the move from city-tier segmentation to generational targeting. While Gen X and Y still drive purchasing power, it is Gen Z that increasingly shapes trends and brand perceptions.

Despite youth unemployment and rising disillusionment, China’s Gen Z remains curious, digitally fluent, and trend-driven, often supported by family safety nets. They seek novelty, relevance, and authenticity in their brand engagements. British brands can win here by aligning with Gen Z values such as sustainability, creativity, and personal expression.

The report recommends that brands without a clear demographic focus consider making Gen Z their “anchor audience” – not just for the short-term gains but to build long-term brand equity.

Emotional branding: Standing out in a price-sensitive market

As discounting becomes widespread, foreign brands, which are often at a cost disadvantage, must lean into emotional resonance to justify their price points. Totem identifies three emotional levers that particularly resonate with Chinese consumers: humour, nostalgia, and escapism.

Gen Z, in particular, is seeking moments of escape – from Covid-era constraints, economic pressures, and digital fatigue. Meanwhile, older consumers find comfort in nostalgia and familiar quality. British brands are well-placed to tap into these emotional triggers through rich storytelling, cultural references, and brand heritage.

In 2025, it’s not about being louder – it’s about being more meaningful. Emotional relevance will be a key differentiator.

China retail trends: From malls to pop-ups

A fascinating new trend is the rise of “swarms” – crowds that converge on specific retail activations or pop-ups driven by online buzz, especially via platforms like RED. These gatherings offer excitement, community, and value, an antidote to social isolation and screen fatigue.

For British brands, this creates a compelling opportunity to rethink their physical presence in China. Instead of long-term leases in traditional malls, think short-term, high-impact brand activations that create sharable, offline-to-online experiences – tea ceremonies, fashion events, or VR demos rooted in British culture could work especially well.

UK-China trade and market entry in 2025

The global context in 2025 is fraught with uncertainty. The return of Donald Trump to the US presidency has reignited trade tensions, with China likely to retaliate against American brands. Some experts foresee closer economic ties between China and non-US markets, including Europe and Canada.

For post-Brexit Britain, this presents both risk and opportunity. UK brands that position themselves as independent and constructive partners to China may find a window to strengthen bilateral trade relationships, particularly as Chinese authorities look for trustworthy foreign partners.

The long-term view: Strategic optimism

Despite the short-term headwinds, Totem’s report ends on a cautiously optimistic note. There are signs that China may emerge from the downturn ahead of other major markets, especially if government stimulus and private-sector confidence gain traction. The return of tech figure Jack Ma in late 2024 has also been read as a symbolic gesture of renewed support for innovation.

For British brands, the message is clear: don’t retreat from China, but refine your approach. Targeted, digitally savvy, emotionally intelligent strategies will serve brands well in this next chapter.

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A new report supported by Energy Foundation China, the NGO I work for, contains some fascinating findings on the climate attitudes of China’s 15 to 24 year olds, or Gen Z, as they’re more often known. It also offers helpful advice on how to communicate with them in a way that builds their support for climate action.

Gen Z are well aware of the central government’s “dual-carbon targets” to peak carbon emissions by 2030 and reduce them to net zero by 2060. They are interested in the job opportunities that this low-carbon transition is creating. But they lack awareness of how climate issues will affect their lives in myriad other ways.

To nurture a Gen Z person that actively participates in climate action and influences peers to do likewise, climate communicators need to speak to their life values. Climate stories should emphasise opportunities for personal growth, avoid overly negative stories, and provide hope for the future.

Gen Z are crucial movers in the low-carbon transition

“How will China’s carbon-reduction targets affect your lifestyle decisions?” I asked.

“Maybe I’ll buy an electric car someday,” a young person answered.

This exchange took place in late 2023 at a Beijing conference on young people’s participation in climate issues. The participants, mostly recent or soon-to-be university graduates who had braved the capital’s cold winter to attend, all said China’s dual-carbon targets had been a major influence on their career choices. But when I asked for other concrete changes that those targets might encourage them to make in their lives, “buying an electric car” was the most common answer. This is despite the ambitious national targets that require an overhaul of the energy system.

The exchange reflects the views of some members of China’s Gen Z. They approve of China having strong climate policies, but don’t know enough about what the actual impacts will be.

Gen Z generally refers to people born between 1995 and 2009. In China, they make up 19% of the population, or 267 million people. The cohort grew up with the internet and is acutely aware of how technology has progressed and driven social change. The country’s ongoing journey towards meeting the dual-carbon targets will encompass their “blooming” years. In adolescence, early adulthood and middle age, Gen Z will experience even more new technologies and products becoming mainstream, and consumption habits changing, as economic development decouples from carbon emissions. For this reason, their backing and participation are vital if global climate targets are to be achieved.

To gain lessons for communications endeavours in this area, Tsinghua University’s School of Journalism and Communications has conducted research with support from Energy Foundation (EF) China. The findings were recently published in a report, “Engaging China’s Generation Z: Research on life values and climate communication”.

What do Gen Z think about climate change and the measures being taken to tackle it? How will they cope with the changes those measures will bring? And how can climate communications resonate with their life values and concerns? We break down our findings here.

How do life values affect Gen Z’s climate stance?

The study concentrated on the 3,552 Gen Z who had taken part in a 2023 survey of Chinese people of all ages, which had grouped all participants into six segments based on their life values.

There are the “Backbone Traditionalists”, who believe hard work will lead to success, and have strong trust in the government (23% of Gen Z participants). “Passionate Strivers” focus both on their careers and making positive impacts on society (18%). “Moderate Pragmatists” embrace traditional customs and virtues while rejecting rigidity and opposing stereotyping (23%). “Philosophical Observers” value autonomy and driving social progress through self-development (17%). “Easygoing Leisurists” value self discovery and seek to avoid conflicts (9%); and “Disengaged Individualists” value self expression and may be detached from political and community issues (10%). 

We need to ensure Gen Z are aware of the systemic reforms to technology, the economy, consumption and social attitudes needed

We found that the life values of these groups correlate with their awareness of climate change and their willingness to take action. The Backbone Traditionalists, Passionate Strivers and Moderate Pragmatists (totalling 64%) exhibited higher levels of awareness of climate change and a perception of its risks, and are more motivated to act. Meanwhile, the Philosophical Observers and Easygoing Leisurists (totalling 26%), showed low awareness and are less compelled to act. Similarly, the Disengaged Individualists had low awareness and sense of risk, and had reservations about climate policy.

Raising awareness still key

Gen Z are very aware of how macro-level factors such as climate policy can change how the country develops – and the available opportunities. But they lack a sense of urgency regarding acting on climate change, and do not see it as something affecting their own lives, and the research backed this up.

More respondents say climate change impacts the natural environment (93.8%) than say it impacts economic growth (83.8%). And while they express concern about climate change, they tend to see it not as urgent, but as a long-term issue to be tackled after, for example, poverty. Their understanding of climate science is also poor, with an average score of 2.69 out of 7.

Helping people see the connections between their own lives and climate issues isn’t easy. But we need Gen Z to understand the risks climate change brings, and not just that they might need to buy an electric vehicle or consider the new jobs it brings. We need to ensure they are aware of the systemic reforms to technology, the economy, consumption and social attitudes that are needed, and the impact these will have on their lives. That will help Gen Z see the connection and promote their individual participation in climate action.

There have been signs Gen Z’s awareness and life values are changing. The research found that, compared to participants aged 18 to 22, those between 23 and 27 are more rational and pragmatic, and show more critical thinking, with more Moderate Pragmatists and Philosophical Observers among their ranks. Those who have started working also demonstrate more awareness of climate risks. This shows that Gen Z’s life values can change, something climate communicators should take into account.

Positive climate narratives can spur action

Our research also found some characteristics common to all Gen Z segments. That is, dreaming of “lying flat” but also of career success.

Some think today’s youth are too focused on enjoying themselves and are unable to do hard work. We found, however, that while 58.5% of respondents agreed that there is “no point in making demanding plans, as the future is too uncertain”, 89.7% agreed that they “constantly improve [their] social skills and hope to become successful”. This apparent contradiction reflects the fact that Gen Z are generally exhausted by living in a highly competitive society, and turned off by negative information – yet they retain hopes for a better future, personal growth and opportunities.

That will affect how they act on climate change. All segments apart from the Backbone Traditionalists were more inclined to agree with language emphasising personal growth, such as job opportunities. Some, such as the Easygoing Leisurists and Disengaged Individualists, were more focused on themselves and less inclined to think they could take effective climate action. Overstressing the severity and irreversibility of the climate crisis could fail to grab their interest, or even repel them.

Accordingly, if climate communications are to speak to Gen Z, we must accommodate their desire for change and a better future. This can be done by focusing on “self-improvement” and informing Gen Z about how climate change interacts with social and personal development. The report has advice specific to each segment, but there are general principles. That is, climate communicators should tell more stories about the synergies between the response to climate change and technological advances, social and economic improvements, and personal development. Stories about new types of jobs created by the journey towards carbon neutrality, for instance, can spark a sense of optimism in Gen Z and encourage them to keep moving forward.

Reaching out to a new audience

Climate communicators have always faced a trio of challenges. How to reach those outside of climate circles? How to encourage public participation in climate action? And how to make those participating feel they have made an impact?

The research found some members of Gen Z are sceptical about the emissions impact of individual action. They support actions which are achievable and do not reduce quality of life, but are more reluctant to take actions involving extra costs. In contrast, many members of Gen Z, including the Backbone Traditionalists, Passionate Strivers and Moderate Pragmatists (which together represent a majority), are willing to practise what they preach on climate action and are positive about the impacts such action has. The study also found that nearly three-quarters of respondents approved of actions within their community to stop climate change, and said they would encourage others to take similar actions. This may be linked to high scores for valuing self-transcendence, communitarianism and political efficacy in these groups.

Reaching out to these “activists” may be one way to expand climate actions beyond climate circles. Strengthening links with these groups who score highly on political efficacy and self-transcendence, and perhaps even providing them with more support and choices, could turn these people into new “climate messengers”. This would mean moving their actions beyond changes in personal consumption styles, such as buying an electric car, and towards positively influencing other people.

The study also found that members of Gen Z identify strongly with their social circle and community. Accordingly, climate communicators could consider linking climate change with the social and personal issues different groups are concerned about and, by using social influence within circles and communities, reach new people and bring them on board.

This is just the beginning of research into climate-change communications and the life-values segmentation of the Chinese public. We hope it will provide new inspiration and ideas for those working in the field. As research continues, there is much scope for cohort studies, which track particular segments of the population over time, as well as designing narratives with broad appeal, and implementing and evaluating communications programmes.

This article was originally published on Dialogue Earth and has been reproduced under the Creative Commons BY NC ND licence.

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Despite making its way to China over 30 years ago, the game of ultimate frisbee has only recently risen to become a popular form of social currency amongst China’s Gen Z crowd. The emergence of this sport is very similar to China’s recent embracing of glamping; it’s an outdoor activity with low barriers to entry and minimum equipment needed.

Not only is Ultimate Frisbee easy to play, but the inclusive nature of this mixed-gender sport has also added to its appeal with a young demographic, who are using it as a tool for socialising. As a result, the activity is reported to have drawn in over half a million players in 2021, taking first place as China’s most beloved niche sport in 2022.

The enthusiasm was soon reflected on China’s largest lifestyle-sharing platform, Xiaohongshu, which also acts as a trend indicator for Gen Z. Frisbee-related content surged sixfold and amassed 570 million accumulated views in the past year, according to the Top 10 2022 Lifestyle Trends published by the platform.

The ultimate frisbee craze was encouraged by the latest notice issued by the General Administration of Sport of China earlier this July announcing the launch of the first China Frisbee League, which was held at a sports centre in Duyi Heritage Park in Xi’an, Shaanxi province. As the news arrived, Xiaohongshu doubled down on its bid on the sport by becoming the official content community for this event. These actions signal a growing recognition of the popular activity, pushing the transformation of frisbee from a niche exercise to the mainstream.

The momentum that frisbee has also had an influence on the fashion industry, with seamless yoga outfits seeing growing traction amongst frisbee players, drawing in sports brands. So far, Norwegian athletic shoe company Hoka and Japanese high-end winter sports brand Descente (which was acquired by Chinese brand Anta) have broadened their product ranges to tap into the frisbee sensation.

Meanwhile, global labels such as Lululemon and Nike, as well as Chinese sun protection unicorn Beneunder, have made efforts to foster communities of frisbee lovers. Lululemon partnered with one of China’s two biggest frisbee start-ups, Yikun Discs, and added this new sport to the routine outdoor activities for its Sweat Community.

The popularity of the sport isn’t just limited to offline communities. In the metaverse, Chinese brand 361 Degree Sports intends to feature frisbees in one of its first NFT-powered digital collections, a collaboration with popular art toy brand FATKO. This has increased the exposure of the sport amongst a young demographic through digital buzz, while strengthening 361 Degree Sports’ connection with its target audience using timely action.

China’s core market for ultimate frisbee (which includes businesses offering frisbee production; sales; venue and training service providers, and competition organisers) is reported to have reached a market scale of RMB 7.5 billion (£917 million) as of 2021, which has also stimulated the growth of related market segments (including activewear, social events, hospitality, and entertainment venues) valued at a total of RMB 86.8 billion (£10.6 billion) by the end of 2021.

With ultimate frisbee expected to grow to a sizeable RMB 64.5 billion (£7.9 billion) by 2027, the additional value generated by related industries is set to hit RMB 652.4 billion (£79.7 billion) in the same timeframe. So as not to miss out on a slice of this market (or other niche sports markets like it), brands should be more active in engaging with local players by providing more experiential activities or incorporating sport with other marketing efforts to create a richer consumer experience, therefore resonating with the target community while maintaining their appeal to existing customers with diversified offerings.

Call +44 (0)20 7802 2000 or email enquiries@cbbc.org now to find out how CBBC’s market research and analysis services can provide you with the information you need to succeed in China.

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The term guochao (国朝), meaning ‘national trend,’ refers to the fact that young Chinese consumers are increasingly interested in the integration of traditional Chinese culture and style with domestic brands and products.

The guochao movement rose to particular prominence in 2018 following Chinese sportswear behemoth Li Ning’s debut on the international fashion circuit at New York Fashion Week. Showcasing men’s streetwear collections imprinted with colour palettes and slogans popular in China in the early 20th century, Li Ning’s catwalk made Chinese nationalism a trendy fashion statement, tapping into a rising sense of cultural confidence among Gen Z Chinese.

While the guochao movement has been most notable for boosting domestic Chinese brands like Li Ning and Anta, the emerging consumer trend also prompted savvy brands to tap into the country’s growing cultural self-esteem. Many brands have come up with their own guochao-inspired creations through collaborations with important Chinese cultural institutions such as The Palace Museum (aka the Forbidden City). From beauty brand L’Oréal to biscuit maker Oreo, marketers from around the globe have sought to package themselves with so-called cultural IPs in a bid to win over the lucrative Gen Z demographic.

As China-proud narratives have flooded the market, some have been praised for showing respect to the local culture, while others have incurred a backlash from disappointed consumers. American chocolate maker Dove and Chinese alcopop brand Rio were among the latter.

Dove chocolate’s 2020 Lunar New Year collaboration with The Forbidden City

Internet users were disappointed by Dove’s customised Lunar New Year 2020 gift box in collaboration with the Forbidden City. Comments noted that the special-edition boxes looked no different from any other candy boxes due to the limited application of elements from The Palace Museum, with only a small logo printed on one corner of the box.

Alcopop brand Rio’s collaboration with insect repellant Liushen Florida Water

Rio’s ‘insect repellent-flavoured’ cocktail also got given the cold shoulder. It was a bold move to partner with a household name like Liushen Florida Water, China’s favourite brand of mosquito repellent, and the campaign sparked fevered buying when it first launched among consumers intrigued by the bizarre flavour and the creative packaging that replicated Liushen Florida Water’s distinctive bottle design. However, once consumers actually tasted the drink they quickly took to the internet to express their disappointment.

Collaborations that are deemed superficial or adopt inappropriate cultural elements not only fail to resonate with the target audience but also put the brand’s image at risk, ultimately resulting in a loss of consumer interest. The unenthusiastic consumer reactions to campaigns like those from Dove and Rio have started to sour guochao-themed campaigns overall, suggesting that some Chinese consumers are starting to experience ‘guochao fatigue.’

However, recent consumer research led by Aurora Mobile (a Nasdaq-listed Chinese big data solutions platform) found that guochao consumption in China is yet to reach its peak. While 70% of China’s post-1990s generation are regular buyers of homegrown brands, the figure rises to nearly 80% among the younger post-2000s demographic. Moreover, consumer interest has been expanding to lower-tier markets after successfully penetrating markets in major first and second tier Chinese cities. It has been reported that domestic brands are the go-to choice for approximately 66% of the population in first tier cities, with more than 80% of consumers from China’s tier three or lower-tier regions embracing national brands. This can be attributed to improved quality that satisfies consumers’ demand for functional, good value products, but also because products and brands are fulfilling an emotional need for national pride.

L’Oréal produced a series of five limited-edition lipsticks in collaboration with The Palace Museum, which were well-received by consumers

Meanwhile, products that incorporate Chinese elements still seem to be appealing to China’s younger generations, with 83.5% of post-1990s consumers showing a strong interest in these offerings. Of these, nearly 30% have turned that interest into an actual purchase, with the same percentages rising to 88.1% and 40% respectively for the post-2000s generation. Furthermore, rather than losing its appeal, the guochao trend is believed to have entered a new era, with the so-called New Chinese Style emerging to drive quality up. Continuing the principle of infusing modern designs with Chinese culture, the new trend appears to be bolder in adapting Western aesthetics and has been penetrating markets such as interior design and fashion, with the latter gaining significant popularity among China’s Gen Z.

It is worth noting that the standards applied to guochao products are being driven continuously upwards by savvy Chinese consumers, who reject collaborations and designs that simply borrow a traditional feature without an effective connection to the brand’s own products. Brands that can create synergy between their own specialisation and the enthusiasm for the guochao movement, on the other hand, can stand out from the crowd and make themselves favoured brands. For marketers who want to capitalise on the guochao trend, this shows the importance of thorough research and well thought out campaigns.

So are consumers getting tired of the guochao trend? The answer, at least for the moment, is probably not. When consumers turn their back on guochao-inspired offerings, it is not because of a lack of interest, but rather because they disagree with the approach brands are taking.

While consumer interest in guochao is still very much present, it has become more sophisticated. The time when putting an existing product in Chinese-style packaging could win a round of applause is long gone. To remain competitive in the battle for successful guochao marketing campaigns, brands need to deepen their understanding of their target audience as well as the culture they exist in.

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