Focus – China Britain Business Council

How Two British Brands Are Engaging Chinese Consumers

2025-09-11T13:56:54Z

Two very different British brands – tea specialist Taylors of Harrogate and luxury fragrance house Boadicea the Victorious – are showing how thoughtful, cautious market development, grounded in digital engagement and brand-building, is a recipe for success in China’s fast-evolving market

For many British brands, China presents both an enormous opportunity and a unique set of challenges. With a growing middle class, an appetite for niche and premium products, and a digital landscape that moves at lightning speed, success in China requires more than just exporting a product. It demands cultural awareness, channel-specific strategies, and a long-term vision.

Brewing success and bottling heritage

Both companies emphasise that entering China is not about a quick win but a long-term journey. Taylors of Harrogate, makers of the beloved Yorkshire Tea, first began exporting to China in 2005 via a distributor. The company has since faced the complexities of evolving retail and digital channels. “Over the last 20 years we’ve seen distributors come and go for various reasons,” says Sarah Henderson, International Business Manager for Asia, Central & South America. “We’ve always believed in building long-term relationships rather than going for a quick win.”

Similarly, Jeremy Taylor, Group Commercial Director at Boadicea the Victorious, stresses the importance of patience. “It’s not about making a quick buck this year,” he says. “It’s about building something lasting over five or ten years.”

Both brands have learned the hard way that applying Western market assumptions to China can backfire. Taylors experienced this in 2014 when an online sales agreement – not fully understood internally – disrupted pricing and undercut its own distributors. Boadicea, too, saw its early China efforts face a number of distribution challenges. Both pulled back and regrouped, now approaching the market with far more intent and clarity.

Digital First, Always

One of the biggest lessons both brands share is the critical importance of digital-first strategies.

“In the West, you start with bricks-and-mortar, then go online,” says Henderson. “In China, it’s the opposite. You build your presence digitally first – then the rest follows.”

Taylors is now launching its own Tmall store via e-commerce partner WPIC, having previously experimented with a Little Red Book (Xiaohongshu) page. Boadicea, meanwhile, is leveraging UK-based Chinese influencers and building brand awareness online before entering physical retail. “You need people to understand the brand first,” says Taylor. “If it’s not for you, then it’s not for you. But if it is, we want them to fall in love with it.”

This approach is as much about protecting brand integrity as it is about visibility. Both brands have had to deal with unauthorised listings, price inconsistencies, and confusion caused by legacy distribution models. Establishing official digital channels gives them control over how the brand is presented and sold.

KOLs, KOCs and Content

For both Taylors and Boadicea, influencer engagement – through key opinion leaders (KOLs) and key opinion consumers (KOCs) – is central to their strategy.

“Chinese consumers want more than just a product – they want the story,” says Henderson. “What really appeals is the Britishness of our tea. The idea of English breakfast tea and the culture around how it’s consumed in the UK really resonates.”

Boadicea shares this emphasis on storytelling. With handmade pewter bottles created by a 200-year-old Birmingham firm that also worked on Game of Thrones and Harry Potter, the brand leans into its dramatic heritage. “If you want a fragrance that helps you disappear into the background, then don’t wear ours,” Taylor says.

The CBBC has played a vital role in guiding both brands, helping with influencer partnerships and introductions to local platforms and networks. “Working with CBBC made sense,” says Taylor. “You’ve got to make the right connections and understand the rules.”

The handmade pewter bottles are created by a 200-year-old Birmingham firm that also worked on Game of Thrones and Harry Potter

Targeting the Right Audience

A major insight for both brands has been the importance of targeting Tier 2, 3 and even Tier 4 cities – rather than focusing solely on saturated Tier 1 urban centres like Shanghai or Beijing.

“Traditionally we’ve focused on the eastern seaboard,” says Henderson. “But online allows us to reach beyond that. Tier 3 and Tier 4 cities are still massive – that’s where you can learn your trade and grow your following.”

Boadicea sees similar potential in China’s emerging cities. “Luxury is being democratised,” says Taylor. “People are more adventurous – not just in Tier 1 cities but across the board. Even a small sliver of that middle class is a huge market.”

Doing It the Right Way

Both Taylors and Boadicea underline the importance of compliance, planning and market understanding.

Boadicea is midway through the complex product registration process in China, a vital step for any cosmetics or fragrance brand. “The creativity of our perfumers is not always aligned with compliance across all international markets,” Taylor jokes. “But you have to follow the rules if you want to do business there.”

Taylors, too, has had to learn how to manage distributors, pricing structures and unauthorised resellers. “Everything is interconnected in China,” Henderson notes. “You need a clear structure – who takes what, at what price – otherwise it causes issues.”

Brand First, Sales Second

Both brands are taking the long view: build the brand first, then scale the sales.

For Taylors, that means leveraging digital platforms to test what appeals to Chinese consumers. “We did some research to see if we even deserved a place in China,” Henderson admits. “But we found strong resonance with 25- to 40-year-old women. It confirmed we’re not a cheap tea – we appeal to the middle class, and there’s a growing audience for what we offer.”

For Boadicea, it’s about seeding the brand before making the leap into luxury department stores like SKP or Lane Crawford. “We want the right kind of awareness,” says Taylor. “The experience needs to be consistent – online or offline.”

A Cautious Confidence

In their own ways, Taylors of Harrogate and Boadicea the Victorious are showing that British brands can succeed in China – by respecting the market, understanding its nuances, and putting in the groundwork.

“You’ve got to find the right partners,” Taylor advises. “And sometimes that means waiting. But if the brand is strong and you do it properly, the results will come.”

Join CBBC’s China Consumer 2025 to learn more about China’s consumer sector.

The post How Two British Brands Are Engaging Chinese Consumers appeared first on Focus - China Britain Business Council.

What is cross-border restructuring?

2025-07-29T14:09:53Z

Foreign‑invested firms in China are increasingly turning to cross‑border restructuring to reduce risk while keeping a foothold in the Chinese market

Cross‑border restructuring offers a way to de‑risk supply chains, sidestep punitive tariffs, and build operational resilience without abandoning China entirely. It is not just moving factories from China to Vietnam or Indonesia. It requires a strategic overhaul of tax structures, legal entities, workforce plans, intellectual property arrangements, supplier networks, and leadership models. When done well, it shifts China’s role from a one‑dimensional manufacturing base to a high‑value node in a broader regional strategy.

Why companies are choosing restructuring

Over recent years, geopolitical tensions, especially US–China trade and export controls, have disrupted once‑stable global supply chains. Rising costs and regulatory complexity in China have meant many multinationals are reassessing their entire China footprint. Yet for most, exiting China is simply impractical: the supply‑chain ecosystem is highly specialised; infrastructure is world‑class; R&D capability remains strong; and the domestic market continues to grow.

Instead, cross‑border restructuring provides a more balanced path. Companies can reduce geopolitical exposure while retaining China’s strengths by shifting certain parts of production, typically low‑value or labour‑intensive activities, to ASEAN or South Asia, while keeping R&D, quality control or domestic sales operations in China.

What to keep in China and why

The first step is understanding which parts of the operation truly belong in China. For some businesses, China is an export hub. For others, it’s a domestic market centre, an innovation base or a quality control node. That functional mapping is essential. Labour‑intensive assembly might be moved offshore, but high‑value engineering, regulatory liaison or customer service may remain.

Downsizing China operations isn’t simple. Legal obligations under labour laws mean consultations, severance and possibly union involvement. Equipment sales or asset transfer may require local approvals, particularly in sensitive sectors. And shifting assets can trigger tax liabilities, companies must weigh exit costs against long‑term benefits carefully.

Sensitive relationships can suffer if the process isn’t handled transparently. Government incentives or supplier ties may be put at risk if local stakeholders feel blindsided. Clear communication and compliance are crucial to preserving goodwill.

Choosing a new host location with purpose

The decision of where to locate new operations goes far beyond low labour cost. Strategic choice today must consider trade agreements, regulatory alignment, infrastructure, talent pools, and industry‑specific incentives.

For example, moving final assembly to Vietnam or Malaysia can help firms meet rules‑of‑origin requirements for free trade agreements, qualifying goods for tariff‑free export to the EU or US. But achieving this advantage depends on genuine manufacturing value‑add, not merely repackaging.

Market access also matters: Indonesia may suit consumer‑goods businesses seeking scale, while Singapore could be preferable for regulated sectors needing compliance clarity. Infrastructure readiness varies, from ports to digital readiness, and needs to match sectoral demands.

Many emerging markets now offer sector‑targeted incentives, India’s PLI (Production‑Linked Incentive) for electronics, or Thailand’s R&D grants for biotech. It’s vital to assess these offers relative to specific company needs.

Structuring the new entity and planning the timeline

How new operations are structured affects control, regulatory exposure, and cost. Options include a wholly foreign‑owned enterprise (WFOE), joint venture, contract manufacturing agreement or strategic alliance – all with different implications for tariff control, governance and local compliance.

To qualify for tariff benefits under agreements like RCEP or CPTPP, companies need to ensure local transformation thresholds are met, not just shipment points moved. That shapes decisions around what functions to relocate and what suppliers to localise.

A phased rollout is often wiser than a big‑bang relocation. Pilot operations allow evaluation of delivery performance, compliance fit, quality standards and cost savings before full-scale implementation. Project timelines must reflect construction, licensing, recruitment, training and partner onboarding timeframes.

Tax, transfer pricing and fiscal design

Restructuring often reshapes where value is created, and that impacts tax. Multinationals must ensure operations reflect substance: functions, risks and assets must align with where profits are allocated to avoid transfer pricing disputes across jurisdictions.

China is increasingly vigilant about outbound restructuring, especially where high‑value functions or IP are shifted. Early engagement with local tax bureaus and careful planning of asset transfers, or equity restructuring, is key to managing capital gains exposure and compliance risk.

Transfer pricing models must be updated to reflect new functional roles. Suppose China becomes a limited‑risk distributor rather than the main manufacturer. Then profit allocation and intercompany pricing must align with legal reality, not just historic structure.

People, leadership and morale

The human side of restructuring is often underestimated. Talent is hard to replace, and morale can suffer if staff in China feel abandoned or insecure. Leadership continuity, internal communications, retention plans, or even relocation programmes, must be carefully managed.

Mobilising key personnel from China to the new site raises immigration, tax and cultural adaptation issues. Host countries may limit work permits or raise residency hurdles. Companies need clear plans and legal advice on visas, taxation and support for expat staff.

At the same time, building a skilled local workforce requires labour‑market mapping, training initiatives, localisation planning and collaboration with vocational schools or employment agencies.

Protecting intellectual property and data

Moving operations can expose IP and data to new risks. Protection regimes vary by jurisdiction, patent law enforcement, judicial capacity and digital data governance differ greatly. IP risk assessments should be specific to each location and business model.

Companies must decide whether to hold IP in China, in a regional headquarters, or a neutral jurisdiction, understanding the impacts on tax, licensing arrangements and exit liabilities. Licensing terms between entities need to be clear, reflecting royalty terms, legal risks, and control frameworks.

If operations shift to territories with weaker IP regimes, greater vigilance, not just contracts, is required. Partner vetting, in‑house retention of core know‑how and regional IP strategies help limit leakage.

Managing supplier and customer relationships through transition

Supply change disruption is a real danger. Long‑standing supplier ties and delivery expectations can be upended if operations move too quickly. Identifying sole‑source vulnerabilities or critical clients is essential before the transition begins.

Maintaining customer service levels during the shift requires interim logistics planning, buffer stock, possible dual sourcing and renegotiation of contracts to reflect new transit routes or import/export jurisdictions.

Proactive, transparent communication builds trust. Customers and suppliers benefit from clear timelines and commitment to quality. In some cases, joint planning with anchor suppliers or logistics partners can smooth the transition; others may mean onboarding new local sourcing partners in the host country.

When is restructuring the right move?

Cross‑border restructuring may sound complex, but it offers more than risk mitigation. For many companies, it is a strategic move designed to future‑proof operations in a world where agility and resilience matter as much as efficiency.

Businesses must assess their own vulnerabilities: Are specific tariff risks or export controls exposing particular product lines? Is there over‑reliance on a single site or region? Which functions are portable? Which need to stay in China? Will a partnership model or contract manufacturing serve just as well as full investment offshore?

Cost savings alone are rarely enough. Firms must weigh infrastructure limitations, legal unknowns, language or cultural barriers, and balance must favour long‑term operational stability over sheer low cost.

Finally, internal alignment is critical. Leadership must treat restructuring as organisational change, not just logistics: reshaping workflows, managing talent, and preserving morale during the shift, all while sustaining governance, communication and the integrity of service delivery.

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How is China’s influencer economy different from the UK’s?

2025-07-30T09:07:57Z

Influencer marketing in China is often the engine of sales; UK brands must adapt to thrive in its unique ecosystem

China’s social commerce space revolves not around ambient influencer posts, but an intricate ecosystem where content, commerce and credibility converge. British brands stepping into this arena must unlearn much of what they assume about sponsorship in the UK and embrace the layered roles of KOLs (Key Opinion Leaders), KOCs (Key Opinion Consumers) and KOSs (Key Opinion Sellers).

“China is a global leader in influencer marketing, with the market for key opinion leaders (KOLs) reaching billions of pounds worth of sales, a scale unmatched in the West,” says CBBC’s Director, Consumer Economy Antoaneta Becker. KOLs like Li Jiaqi the ‘lipstick king‘, regularly drive hyper‑growth via marathon livestreams. Becker reminds us that “big isn’t always better” — sometimes niche, mid-sized creators outperform giants on return on investment. KOCs —micro‑influencers with smaller but highly engaged followings — often play the most effective role in initial trust building. They provide authenticity, especially among Chinese consumers who tend to trust peer reviews more than polished celebrity endorsements.

Platform dynamics differ sharply, too. In the UK, an influencer post may raise awareness; purchases generally happen later, off‑platform. In China, platforms like Douyin (short video plus Mini Shops), Xiaohongshu (content-led discovery), Taobao Live (livestream‑driven sales) and WeChat mini‑programs link community, content and commerce in real time. A single livestream can sell out stock in minutes if logistical readiness, message alignment and platform strategy are in place.

The contrast is striking: whereas UK shoppers are comfortable with keyword search and independent product research, Chinese consumers rely on multiple touchpoints — sometimes eight or more — before buying, placing influencer-driven livestreams or lifestyle content at the centre of the journey.

This difference produces very real errors. UK brands can fall into the traps of misallocating budgets, chasing marquee KOLs without matching audiences or not ensuring inventory readiness. Some refused to adapt messaging or packaging after KOC-led feedback, and ultimately saw partnerships cancelled or campaign efficacy drop dramatically.

By contrast, successful brands use KOCs early to validate messaging and packaging through Influencer Focus Group or similar sessions. Once the story resonates, they scale via KOL livestream collaborations — yet always with careful alignment of inventory, platform mechanics and sales fulfilment. In a recent CBBC panel, Ntola Obazee of Emma Bridgewater explained that “live streaming in China now accounts for 10% of Emma Bridgewater’s sales, with live streamers often creating videos of the unboxing experience and doing live reviews of products” — demonstrating the power of co-created content paired with real-time conversion via influencer formats.

The benefits are compelling: livestream-led campaigns can produce dramatic sales spikes, micro‑influencers seed grassroots trust, and private‑domain marketing via WeChat mini‑programs or group chats fosters loyalty and repeat purchase. WeChat groups in China can be very effective if key opinion communities are pushing products through and mobilising with great content and brand support.

However, the influencer economy brings real risk. Fake followers and inflated engagement are widespread; studies suggest up to 45% of influencer metrics may be fabricated, often through Multi-Channel Network (MNC)-driven embellishment. High-profile scandals — such as livestreamer Viya’s abrupt ban for regulatory infractions — can trigger blackout-like disruptions and literary vanish entire campaign plans overnight.

Cost structures also diverge. In the UK, flat‑fee sponsorship is common; in China, KOL deals often involve commission-based remuneration (typically 10–30 %) or MCN-managed bundles. Brands must account not only for talent cost but stock readiness, logistics and contingency planning — missing stock at the moment of conversion can immediately undermine credibility.

To compete effectively, UK brands must recalibrate their strategy. They should engage micro‑influencers early, adapt assets and packaging via focus testing, co-design livestream programmes, plan inventory and logistics robustly, and use KOLs and KOCs in tandem to seed trust and scale. They must prepare to build community in WeChat private domains rather than assume platform checkout alone will convert UK-style posts into sales.

China’s influencer ecosystem demands theatre and trust anchored in real-time commerce. Brands that replicate a UK influencer playbook — isolated macro-influencer mentions or studio shoots — are unlikely to make an impact. Those that design a multi-tiered influencer strategy — seed with KOCs, amplify with KOL livestreams, convert on Douyin or Taobao, and retain via WeChat — stand to perform at a level far beyond UK norms.

UK brands engaging in China’s social commerce must treat influencer marketing less as sponsorship and more as an integrated sales channel, rooted in live content, platform-native formats, tight logistics and trust-led storytelling. Those that get the ecosystem right unlock not just sales spikes, but scalable, sustainable consumer journeys.

Join CBBC’s China Consumer 2025 to learn more about the social selling sector in China

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What Chinese distributors expect from UK brands in order to deliver the best value

2025-07-23T09:41:36Z

A successful brand‑distributor partnership depends on clear communication, mutual expectations and shared expertise

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

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

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

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

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

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

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

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

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

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

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

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What does Shanghai’s minimum wage rise imply for the economy?

2025-07-25T09:01:06Z

A modest pay increase in China’s financial hub reflects wider national efforts to balance economic pressures with social stability

From 1 July 2025, Shanghai raised its monthly minimum wage from RMB 2,690 (£288) to RMB 2,740 (£294), a relatively conservative increase of less than 2%. The city’s hourly minimum wage also climbed from RMB 24 (£2.57) to RMB 25 (£2.68). While Shanghai retains the highest minimum wage in the country, the small increment marks its lowest annual increase in over a decade — signalling a broader strategic shift in China’s approach to wage setting.

The restrained increase comes at a time when many Chinese cities are weighing the need to support workers against mounting pressure on businesses. For low-income workers in the city, the additional RMB 50 (£5.36) a month may be welcome but is unlikely to keep pace with rising costs for essentials like rent, transport and food. Meanwhile, employers — particularly in the private sector and among SMEs — have been wary of sharper increases that could hit hiring and operating margins.

Shanghai’s move follows a pattern seen in other economically advanced parts of China, such as Beijing, Shenzhen and Guangdong, where minimum wage growth has slowed in recent years. Beijing now has the country’s highest hourly minimum wage at RMB 26.4 (£2.83), while Shenzhen and Guangdong follow closely behind Shanghai with monthly minimum wages of RMB 2,520 (£270) and RMB 2,500 (£267) respectively. Coastal cities continue to lead the pack, but the difference with other regions is narrowing as inland provinces roll out more substantial hikes.

China allows each of its 31 provincial-level regions to set their own wage levels, leading to wide disparities. While most now have minimum monthly wages above RMB 2,000 (£214), some less developed provinces such as Hunan and Liaoning still sit closer to RMB 1,700 (£182). Regional authorities are required by law to review wages at least every two to three years, but increases are not guaranteed. Shanghai skipped adjustments altogether in both 2022 and 2024, reflecting the uncertain post-Covid economic environment and the government’s cautious fiscal outlook.

The wider context for these adjustments is China’s drive towards “common prosperity”, a national policy ambition aimed at reducing inequality and spreading the benefits of growth more evenly. While minimum wage rises are just one part of this broader agenda, they remain a critical lever for supporting working-class incomes and boosting domestic consumption.

Still, policymakers are walking a tightrope. Labour-intensive industries such as manufacturing, retail and logistics remain sensitive to wage increases, particularly in regions where businesses already face thin margins. Some firms may respond by relocating operations to lower-cost inland areas, or by investing in automation. Others may reduce hiring or move workers to informal, lower-paid roles not protected by minimum wage regulations.

There is also a generational and demographic dimension. Migrant workers and young people are disproportionately represented in low-wage and part-time employment, and thus stand to benefit from wage increases, but they are also most at risk if businesses trim staff to offset higher costs.

Shanghai’s modest wage rise this year suggests a preference for gradualism. The increase was likely designed to signal continued government support for workers, without destabilising local businesses or contributing to inflation. Analysts expect other cities to follow similar trajectories: small, measured increases tied closely to local economic indicators such as productivity growth, employment rates and cost-of-living data.

With China’s economy facing slower growth, soft domestic demand and ongoing global trade pressures, wage-setting will remain a key balancing act for local and national authorities. The 2025 update may be modest on paper, but it offers insight into how China is managing its transition from high-growth industrial powerhouse to a more service-led, consumption-driven economy.

For now, Shanghai leads the country in both pay and prudence. The rest of China is watching closely.

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Navigating the Chinese consumer market in a post-tariff world

2025-07-16T08:29:06Z

The lifting of tariffs marks a potential turning point for British brands in China, but understanding local sentiment, policy shifts, and the role of soft power is more important than ever

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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China is democratising luxury – what does this mean for your brand?

2025-07-15T10:58:43Z

As China’s middle class grows more sophisticated, luxury is evolving. For British brands, the challenge is to stay relevant without diluting their heritage

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

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

Luxury beyond the logo

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

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

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

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

The rise of “accessible luxury”

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

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

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

Opportunity meets complexity

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

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

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

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

Post-pandemic shifts

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

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

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

What British brands should do next?

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

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

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

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

A shifting but enduring allure

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

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

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

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Part 2: What to do if your relationship with a Chinese distributor goes wrong

2025-07-14T15:55:21Z

Whether you want to regain control, stay in the market or make a clean break, here’s how to manage a breakdown with your Chinese distributor, and how to avoid it becoming a full-blown disaster

If Part 1 of this series focused on what brands must do to prepare before signing with a Chinese distributor, Part 2 explores the more difficult scenario: what happens if that relationship breaks down?

As Zarina Kanji, Managing Director UK & Europe at WPIC, puts it: “The best thing is to avoid getting stuck in the first place.” But if things do go wrong, whether the distributor isn’t delivering, the market strategy has changed, or the working relationship has simply soured, brands must move swiftly, strategically and with clarity.

“Trust is absolutely fundamental in Asia,” says Kanji. “It’s a region where relationships matter. The number of UK brands and beauty partners is small, people talk. If you can keep things professional and polite, you’ll stand a better chance of exiting on good terms.”

That’s not always easy, but it’s critical. “If you’re planning to stay in the Chinese market, you’ll need to line up a new partner and manage the transition carefully,” she explains. “Platforms like Alibaba or an agency like WPIC can sometimes support the handover. The new partner might help with transferring stock, keeping the store live and downtime minimal. But this is only possible if the breakup isn’t acrimonious.”

If tempers flare or the relationship turns hostile, things can spiral quickly: stores shut down, sales data is lost, and customer reviews disappear. “In the worst-case scenario,” she adds, “it’s a reminder of why doing due diligence upfront— and retaining ownership of your store — is so important.”

A phased approach—not a scorched earth

Kristina Koehler-Coluccia, Head of Business Advisory at Woodburn Accountants & Advisors, has seen this scenario play out many times, including with long-established brands.

“I’ve worked with companies that started with wholesale, then expanded into e-commerce and even hired staff. When the time was right, they decided to set up their own company in China. But instead of cutting ties with their distributor, they took a phased approach.” In this case, the company drew up a list of everything the distributor controlled — logistics, warehousing, customs clearance — and identified what to take back in-house and what to leave in place.

“Just because the distributor’s no longer right for the e-commerce or brand management side, doesn’t mean they’re not good at operations,” says Koehler-Coluccia. “So rather than burn the bridge, keep them doing what they’re good at. It also avoids triggering hostility.”

This type of staged transition can be particularly valuable for brands that rely on physical stock management. “Distributors don’t always just run the store,” she says. “They may also hold your inventory, fulfil orders, or handle customer service. You need to think about the whole supply chain, not just the front end.”

If it turns ugly, get legal, get local

But what if the distributor won’t cooperate? What if they refuse to transfer ownership of assets – or worse, continue using your brand? “If it turns ugly, you need a Chinese lawyer,” says Koehler-Coluccia. “Don’t try to manage this through a UK firm. Chinese law, Chinese platforms – this is where you need expertise on the ground.”

The first step is to review your contract. Hopefully, it includes clear terms on asset ownership and an exit clause (as advised in Part 1). If the distributor has no licensing rights and doesn’t own the trademark, you have leverage. “If they’re still using your brand post-termination, you can stop shipping,” she says. “That gets their attention. Meanwhile, your legal team can engage directly with the platform—whether that’s Tmall, JD, or another.”

She also recommends reaching out to the platform itself. “Tmall and JD don’t want this conflict either,” she explains. “They earn off your sales. They want to keep your brand active. You can get a client manager, and in some cases, they’ll help you change usernames and passwords. But you need a lawyer to do this—it’s not a simple customer service job.”

Keep your company structure in mind

For brands with serious long-term ambitions in China, one option is to incorporate locally. “Platforms will only let you own your store directly if you have a Chinese entity,” explains Koehler-Coluccia. “So many companies we work with start by using a distributor, but then form their own local company to take over.” That local entity can then contract directly with the platform, manage invoicing, repatriate profits, and even hire staff. “You can still outsource warehousing and logistics, even keep the same partner in a reduced role,” she adds. “But you control the brand and the data.”

For brands exiting completely, the priorities are slightly different. “If you’re done with the market,” says Kanji, “then the key is to get everything closed as quickly and cleanly as possible. Connect with the platforms and ask to close the stores, retrieve any stock, reclaim your platform deposit and close contracts—especially if you’ve got months left and nothing’s happening.”

Think strategically, not emotionally

In Kanji’s experience, British brands often get caught up in the heat of a bad situation. “But think long term,” she advises. “If you might want to come back to China, then it’s worth leaving on good terms.”

She recommends again using the CBBC, DBT, or approaching platforms directly for guidance. “There are people who’ve done this before and can help. Don’t go it alone.” And ultimately, as Koehler-Coluccia points out, this is about thinking operationally. “Too many brands only think about the e-commerce channel. But if you’ve been doing wholesale too, that’s a whole different relationship. Do a SWOT analysis. What are your distributor’s strengths? Where are the weaknesses? How much can you do yourself—and how much do you need help with?” She concludes with a reminder: “If your distributor has done a good job with logistics, why change it? The goal is to regain control, not destroy what’s working.”

Part 1 Recap: What to do before engaging a Chinese distributor
Read the first feature in this two-part series for a full breakdown of how to choose the right distributor, avoid common mistakes, and ensure you retain control of your brand in China.

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Part 1: What to do before engaging a Chinese distributor

2025-07-14T15:58:12Z

Making sure you have the right distributor before you enter the market is essential to ensure your brand’s IP is protected and you won’t come unstuck further down the line. In the first of this two-part series, we explain what to do in advance of finding a Chinese partner

It’s no secret that the Chinese market offers immense opportunities for international brands. But engaging a distributor without thorough preparation can leave businesses exposed, misrepresented, or worse, locked out of their own success. Two experts, Zarina Kanji, Managing Director UK & Europe at WPIC, and Kristina Koehler-Coluccia, Head of Business Advisory at Woodburn Accountants & Advisors, offer a clear-eyed look at the key steps British companies must take before signing anything.

The first lesson: do your homework. “Due diligence is everything,” says Kanji. “Ask for case studies from the distributor of companies they have worked with before and speak to them about their experience with that distributor. Ask partners within the network for their insights. It’s a relatively small community, so introductions are possible. Speak to other brands about their experience—but be discerning. Some may have had a bad story, but that might be down to getting the price wrong, or targeting the wrong market.”

She recommends using networks like the China-Britain Business Council (CBBC) and the Department for Business and Trade (DBT) to get introductions and independent perspectives. But due diligence isn’t just about reputation, it’s also about understanding what’s actually being offered.

“Governance is important,” she says. “You need to know the breadth of services on offer. Is it an end-to-end service? Are they only running social campaigns, or are they also providing logistics, data reporting, and customer service? Some brands charge less, but do a lot less. You have to understand what’s required of you as the brand.”

For example, larger partners like WPIC may put 10 to 15 people on a single brand account. But smaller partners often require brands to provide considerable input, time and resources of their own. If your internal team can’t handle the load, the relationship may suffer.

Know your value…and your size

A common mistake, Kanji warns, is choosing a distributor that’s either too big or too small. “If your brand is under £10 million in annual turnover, don’t go for a giant partner like Baozun. You’ll be competing with Nike or Lululemon and you simply won’t get the attention.”

Instead, she advises finding partners at a comparable size. “You want someone who sees value in your business and is incentivised to make it grow, not just to hit quotas.”

Own your store. Protect your IP.

Perhaps the most critical red flag is giving away too much control, too early. “Make sure you own your store in China,” says Kanji. “The worst-case scenario is handing ownership of your Tmall or JD store to the distributor. Once they have that, they have the upper hand. That’s where the most costly and complex challenges come from.”

Koehler-Coluccia agrees emphatically. “There must be a clause in the distribution agreement that clearly states: all collateral belongs to the brand,” she says. “That includes the Tmall and JD stores, the inventory, all the digital assets. And if the contract ends, there must be a clean transfer of those assets back to the brand.”

In practice, she adds, this means spelling everything out in the contract—including an itemised list of what the distributor is setting up, and who owns what. Too often, British companies rely on UK lawyers for contracts that will be enforced in China. “Don’t do that,” she says. “Hire a Chinese law firm. You’re playing by Chinese rules—use someone who knows the game.”

Plan your exit before you start

One of Koehler-Coluccia’s most repeated mantras is simple: have an exit strategy. “There needs to be a section in the contract that says: if this doesn’t work, here’s how we unwind it. That includes transferring stores, assets, remaining stock. Don’t wait until things go wrong to figure that out.” It’s also worth accounting for the possibility that the distributor might lose money on the venture. “If they spend on marketing or logistics and don’t see ROI, what happens? That needs to be agreed up front—whether that’s clawback clauses or refund triggers.”

Understand the costs…and how to get paid

The Chinese e-commerce ecosystem is expensive and complex. Brands must factor in multiple layers of fees: platform deposits (for Tmall, JD, etc.), annual platform charges, partner fees, and campaign costs. All of these need to be fully itemised from the beginning.

“Get a full breakdown,” says Kanji. “You need to know what the fees are, what frequency they’re paid, and what happens if something goes wrong. Budgeting without this knowledge is asking for trouble.”

Remittance is another challenge. How will profits be repatriated? What’s the process for converting RMB back into pounds? These issues need to be clarified up front, with support from tax and legal advisors familiar with Chinese rules.

Stay involved from day one

For companies that assume the distributor will handle everything, both experts sound a stark warning. “Too many brands just want to delegate,” says Koehler-Coluccia. “They don’t have the internal capacity, so they assume they can just hand it off and watch the money roll in. That’s a fantasy.” Instead, she stresses the need for active involvement: “Set KPIs. Have monthly meetings. Monitor performance. If targets aren’t being hit, have that conversation early.”

It’s not uncommon, she says, for companies to ignore the setup process, then try to take control later, only to find the distributor has more leverage than expected.

“They’ll say: we put in the capital, the resources, the attention. And now you want to terminate us? If you’re not willing to pay attention from day one, what do you expect?”

Choose partners with platform access and influence

Relationships still matter in China, particularly when it comes to access and visibility. “Ask how long they’ve been in business, and how well integrated they are with platforms like Alibaba, Douyin, Xiaohongshu (RED),” says Kanji. “At WPIC, we have longstanding partnerships, so we get early access to marketing campaigns or new tools. That gives our clients first-mover advantage. Some agencies don’t have those connections., they can’t pull favours, they can’t get you in early.” That kind of platform integration can be the difference between a flagship campaign and being lost in the crowd.

Eyes wide open

Ultimately, both Kanji and Koehler-Coluccia stress the same thing: be realistic. China is not a plug-and-play market. It takes time, investment, clarity, and ongoing engagement. British brands that treat their Chinese distributor as a plug-in growth engine are almost always disappointed. But with the right preparation, the right legal safeguards, and a partner aligned to your scale and ambition, the rewards can be substantial. As Koehler-Coluccia puts it, “You can’t just hand it off and hope. This is your brand. Protect it.”

Read Part 2 here: What to do if your relationship with a Chinese distributor goes wrong

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What are the implications of China’s population decline?

2025-07-09T08:21:02Z

China’s population is shrinking, creating challenges and opportunities for its economy and British businesses

In 2022, China’s population fell for the first time in six decades, dropping from 1.4126 billion to 1.4118 billion, a decline of 850,000. This trend has accelerated, with losses of 2.08 million in 2023 and 1.39 million in 2024, according to China’s National Bureau of Statistics. The United Nations projects a further decline of 204 million by 2054, and by 2100, China could lose over half its current population, falling by 786 million. This shift, driven by low birth rates and an ageing population, is reshaping labour markets, consumer demand, and business prospects. For UK firms, understanding these changes is key to thriving in China’s evolving market.

The decline stems from the One-Child Policy (1979–2015), which limited most families to one child, reducing the number of women of childbearing age and skewing gender ratios. Coupled with high living costs, shifting attitudes towards marriage, and the economic impact of COVID-19, China’s birth rate in 2024 was just 6.77 live births per 1,000 people, slightly up from 6.39 in 2023. Meanwhile, the population over 60 reached 310.3 million in 2024, up from 297 million, while the working-age population (16–59 years) dropped from 61.3% to 60.9%, totalling 858 million. By 2050, those over 65 are expected to double, straining social systems.

To counter this, China has rolled out policies to boost births and manage an ageing society. Since 2016, couples can have two children, expanded to three in 2021. Subsidies, like Shenzhen’s RMB 19,000 (£2,050) for families with one to three children, aim to encourage childbirth, alongside tax deductions and childcare support. However, these measures have yet to reverse the decline. Starting January 2025, China will raise retirement ages, men from 60 to 63, women from 50 to 55 (blue-collar) or 55 to 58 (white-collar) over 15 years, to address a shrinking workforce. The government is also investing in the “silver economy,” with policies like rent exemptions and tax breaks for eldercare providers, as outlined in the 2022 National Development and Reform Commission measures and the 2024 State Council’s Opinions on Developing a Silver Economy. A private pension scheme, launched in 2022 and expanded nationwide in 2024, offers tax incentives to ease pressure on public pensions. Additionally, China is pushing automation and “New Quality Productive Forces” (NQPFs), focusing on AI, robotics, and biotechnology to offset labour shortages.

This demographic shift challenges China’s economic model, once fuelled by a large, young workforce. With 734.4 million workers in 2024, labour shortages are not immediate, but industries like manufacturing and construction may face higher wages and shortages as younger workers shun manual labour. A smaller population could shrink consumer markets, with older citizens spending less. Yet, rising per capita income – RMB 41,314 (£3,550) in 2024 – and policies like the Special Action Plan to Boost Consumption and the dual circulation strategy are strengthening domestic demand. British brands like Burberry succeeded by tailoring products to local tastes, highlighting the need for adaptability.

Despite challenges, China’s ageing population creates opportunities for British businesses. The eldercare market, projected to reach £2.6 trillion by 2030, demands healthcare services, pharmaceuticals, and medical devices. Healthcare Opportunities in China, allow UK firms like AstraZeneca to grow in China through local partnerships to meet these needs. Education is another growth area, with smaller families spending more on premium services and a shortage of skilled workers in technology, healthcare, and engineering. UK institutions are also helping to uskilling China’s workforce by expanding vocational training. China’s push for automation aligns with UK strengths in AI and robotics, as seen at the 2024 China International Import Expo, where British tech firms showcased innovative solutions.

To succeed, British businesses should invest in automation, partnering with Chinese firms to develop AI and robotics. Offering vocational training, diversifying products for an ageing, affluent market, and building local partnerships are critical. Flexible work arrangements can also attract talent in a competitive market. While China’s population decline poses risks like labour shortages and reduced consumer demand, it also opens doors in healthcare, education and technology. By staying agile and leveraging UK expertise, British firms can seize these opportunities in China’s changing landscape.

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