CBBC’s Director of Consumer Economy, Antoaneta Becker, welcomed attendees and introduced the state of the Chinese market in the Year of the Snake. She highlighted that while challenges exist in operating within the Chinese market, the potential for consumer and lifestyle brands is enormous.

Lindsay McGarvie, Corporate Affairs Director at Edrington, introduced the drinks brand, which owns spirits brands including The Macallan, Glenrothes, Highland Park, and Famous Grouse. The privately owned company, founded in the late 19th century, has donated £367 million since 1961 via its charity arm, the Robinson Trust. McGarvie spoke about the success of Edrington’s luxury whisky brand, The Macallan, which is the most valuable single malt in China. “Chinese consumers love our brands, and we keep developing them,” he said.

As The Macallan is renowned for maturing in sherry casks, McGarvie explained that Edrington acquired a sherry company in the Caribbean and two cooperages to ensure full control over the supply chain.

Gilford Law, Director General of the Hong Kong Trade Office, explained that the role of his office is to support business expansions to Hong Kong, facilitate meaningful trade, and build on the creative sectors and arts. Law also discussed Hong Kong’s recent significant reduction in duty on spirits, from 100% to 10%, which will provide substantial growth opportunities in the sector.

CBBC’s Senior China Policy Analyst, Kenrick Davis, provided a comprehensive economic outlook. He noted that while the Year of the Dragon wasn’t particularly strong, the Chinese government claimed the economy grew by 5%. Davis mentioned that, despite this claim, anecdotes of PhD students working as delivery drivers and staff being asked to repay bonuses suggested that the real figure was closer to 2.3%.

While the electric vehicle market and green energy industry are positive drivers, the real estate crisis has dampened growth, and consumer sentiment has slowed.

He also highlighted the key economic drivers—trade, outward investment, digital economy, tourism, manufacturing, the green sector, and advanced tech—while pointing to challenges such as geopolitics, demographics, low demand, youth unemployment, and deflation.

Looking to 2025, Davis projected a growth of 4-5%, adding, “The thing to remember about China is that it’s such a big market that 5% growth is the equivalent of another Switzerland being added to the global economy.”

Rising US tariffs, weak consumer demand, a declining property market, technological decoupling, and debt burdens will continue to pose challenges. However, Davis noted that the Chinese government’s fiscal stimulus plans and officials’ desire to meet targets as the last Five-Year Plan concludes will help drive growth in 2025.

New Opportunities

The first panel of China Consumer Scotland 2025, moderated by CBBC’s Chief Commercial Officer, Claire Urry, featured Daisy Ip from Invest Hong Kong and Geoff Kirk, Channel Director, Secondary Market for The Macallan. They discussed the impact of the duty reduction on spirits in Hong Kong and The Macallan’s success in China since Edrington opened an office in Shanghai in 2003.

“Development and growth have taken a long period of time—communication and education have been essential in converting consumers from white spirits to golden spirits, which has not been easy. The traditional route to market in China was via ‘on-trade,’ through bars and hotels, but in the last five years, there has been a shift towards e-commerce—especially since Covid. TMall and increasingly JD.com help us reach beyond the traditional routes, which are heavily reliant on logistics and organisation,” he explained.

Kirk also talked about The Macallan House in Hong Kong, highlighting that Chinese consumers now seek deeper connections with brands. “Consumer demand has shifted from product ownership to education and, now, to experiential engagement. It’s not just about a transaction—it’s about bringing the brand to life,” he said.

Kirk also noted that collaborations and limited editions tailored to the Chinese market are crucial for success in the region. “We bring our history and heritage to life, which is critical in Asia. It’s all about storytelling. Companies that can create unique experiences for consumers will have the most success. This will help boost the whisky industry as a whole, to which we all benefit,” he added.

Daisy Ip explained that between 1997 and 2007, the wine trade in Hong Kong grew by 2.7%. However, following a reduction in wine duty from 80% to 40%, and then to 0% in 2008, growth accelerated to 15.8%. “Hong Kong is now the largest wine hub in Asia and ranks among the top three cities globally for wine auction sales,” she said.

With over 12,000 ultra high net worth individuals in Hong Kong and more than 2,700 single-family offices, the potential for whisky auctions and luxury consumer goods is significant, she added.

Building a Successful China Strategy

The second panel, focused on building a successful strategy for the Chinese market, featured Wei Fu from Commercial Cross. Wei pointed out that not all British brands succeed and emphasised the importance of leveraging the inherent advantages that British brands have — particularly their history, heritage, and reputation for quality. However, Chinese brands, though younger, are fast-moving and can quickly outperform foreign competitors.

Commercial Cross helps British brands operate TMall stores and manage social media accounts, while offering strategic advice. Wei said that Chinese brands often incorporate Western elements into their products to enhance the perception of luxury and quality. Most foreign brands struggle because they fail to adapt to the local market, whether in terms of product offerings, marketing strategy, or platform choice. “You must also have the funding to execute complex marketing strategies, often dedicating 30-40% of target revenue,” she explained.

“We advise our clients to create a brand tailored specifically to the Chinese market and commit to long-term development. The Chinese market takes years to cultivate—it’s not a territory where you can simply dip your toes in,” Wei said.

Antoaneta Becker added that British brands are now primarily competing against local Chinese brands, not each other. “Chinese brands have made huge strides in quality, technology, and confidence, so don’t approach the market blindly,” she warned.

Desiree Wong, from e-commerce solutions provider Pattern, discussed the lower-risk option of entering the China market through cross-border e-commerce, which bypasses the need for complex product registration and logistics. The rise of social commerce, particularly on platforms like Douyin and increasingly Rednote, is now standard, she noted. Brands with limited budgets may opt to work with distributors, but Pattern sometimes co-invests with brands if they see significant potential.

Kristina Hui, Head of Business Development at Alibaba, explained that T-Mall Global, owned by Alibaba, is the primary platform for connecting with Chinese consumers. “For brands of all sizes, entering the China market can be daunting, but TMall is not just a shopping platform—it’s a community where people can explore and make informed decisions,” she said.

Isabella Liu, International Brands Director at Matro Group, shared the success of British House, which opened a new store in a UNESCO World Heritage site in Suzhou. Lochaven, a knitwear manufacturer, launched its China journey in November 2024 with Matro. Liu explained that using the e-commerce accelerator has been a great experience, with Lochaven’s products now available on Matro’s T-Mall site. “The data T-Mall provides helps ensure that we sell the right volume of the right products at the right price,” she said.

2025 Trends

The third panel, which focused on market trends for 2025, featured Zarina Kanji, Managing Director for UK & Europe at WPIC Marketing + Technologies, and Yang Ding, Founder of New Silk Route Digital.

Yang, who has helped luxury brands like Goodwood shape their China strategy, highlighted the importance of adapting to local tastes and needs. “For instance, video content must capture attention within the first second, or viewers will skip it,” he said. He also referenced traditional Chinese astrology, explaining that the Ninth Purple Fire period, which began in 2024, will last until 2043. This period is expected to benefit technology, innovation, entertainment, luxury, and wellbeing sectors, but challenges will include instability and burnout. Therefore, Yang advised focusing on solid foundations rather than rapid growth.

Kanji emphasised the importance of balancing ambition with budget. “TMall is the most common route to market, but platforms like Rednote (also known as Red or Xiaohongshu) allow brands with smaller budgets to test the waters before making a more significant financial commitment,” she said.

WPIC’s four main consumer groups are Aesthetes, Vitality Seekers, Homemakers, and Pet Parents. Kanji also noted a growing interest in mystical divination, as people seek answers to the uncertainty in the economy and their careers.

Finally, CBBC’s Chief Executive, Peter Burnett, made closing remarks. He noted the positive momentum from the UK government, highlighting multiple calls and visits, and a comprehensive outcome statement that offers a clear path forward for the year ahead.

China Consumer Scotland was made possible by CBBC’s supporting partners, the Hong Kong Economic and Trade Office, London and Invest Hong Kong, and was delivered in partnership with Edrington.

The post How Scottish consumer brands can succeed in China in 2025 appeared first on Focus - China Britain Business Council.

Tailor made for Scottish consumer brands interested in discovering China’s vast and potentially lucrative consumer marketplace, the event brought together leading consumer brands operating in China, alongside Chinese importers and retailers, to share their insights and tips for success in China with delegates.

The session was delivered in person ahead of CBBC’s Chinese Burns Supper and the 2024 China-Scotland Business Awards, which took place later that evening.

The event opened with a Panel Session, ‘Entering and succeeding in the Chinese market – Hear from companies in the market’, in which CBBC’s Director of Consumer Economy Antoaneta Becker chaired a discussion with Joanna Zhou, China Commercial Manager at Holland & Barrett; Arjun Koyappalli, the Managing Director of Napiers the Herbalist; and Sarah Armstrong, Founder and Creative Director of lifestyle brand, Pinyin Press.

The discussion introduced the scale and size of the China market opportunity and the ‘new normal’ in China following the Covid-19 pandemic. Despite changes to the market, growth remains impressive, with consumer spending outstripping China’s overall economic growth, and the market is packed with potential for UK brands. The market is characterised by a new ‘rational consumption’ trend, with consumers carefully planning spending due to economic pressures and societal trends. Consumers are also spending as an escape from pressures and a means to pursue wellness – which is a key buzzword in China’s consumer landscape right now. Trends to watch include the rise of Chinese whisky, which has the potential to reshape the global distillery market.

Sharing her view of opportunities in China, Holland and Barrett’s Joanna Zhou remarked: “It has been a good three years… but we can definitely see the changes in the consumer market following Covid-19 and economic changes. We have found when working with the right channels the opportunities are still available.”

She also introduced guests to a trending phrase in the China, ‘Morning C Evening A’: “Morning coffee and evening alcohol, or morning vitamin C and evening vitamin A (when used as skincare ingredients) – which symbolises Chinese consumers’ desire for fun as well as wellness”.

Zhou also shared how the company entered the China market by leveraging both B2B and B2C channels. It was easier for the company to start with cross-border e-commerce due to the fact that it was selling regulated vitamins and health products, however they have since branched into B2C with Tmall and Alibaba. For other channels, the company works with distributors, and she recommends keeping a close working relationship with them, continuously evolving and adapting those partnerships whenever possible.

With regards to Chinese consumers’ experiences, Zhou noted the importance of making the consumer journey as speedy and streamlined as possible, i.e.,  with as few clicks to purchase as possible. She shared how Holland & Barrett has worked with UK and Europe-based influencers to tap into the Chinese consumer market in the UK as well as domestically, with KOLs driving huge sales.

The audience also heard from Sarah Armstrong, Founder and Creative Director of lifestyle brand Pinyin Press. Sarah shared her brand’s journey in the China market and its cross-cultural design concept – which filled a gap in the market to create an affordable gift brand.

Armstrong noted that it is “interesting seeing a progression and seeing that Chinese consumers are appreciating Chinese imagery and symbols like dumplings and lucky cats”, with homeware and home gifting becoming increasingly popular.

Currently, Pinyin Press sells its products on Taobao and WeChat as well as via offline channels. Armstrong noted that she doesn’t work with KOLs as a small brand, but reaffirmed the value of meeting consumers face to face and selling products at craft markets, saying: “I put quite a lot of time into offline events, festival events, and shopping events in Shanghai. [These events] attract an excellent audience of Gen Z and Millennial consumers; I can talk to them face to face and get them engaged with my brand story and products”.

She also noted how localisation never stops – a point that was reinforced by CBBC’s Antoaneta Becker, who observed that the rise of guochao in the Chinese market means that brands can no longer simply replicate Western products for Chinese consumers but instead must work to understand cultural relevance and the importance of Chinese culture in order to win over Chinese shoppers and avoid faux-pas.

Pinyin Press’ products were on display for China Consumer Scotland guests

Arjun Koyappalli, Managing Director of Napiers the Herbalist, also shared his insights with the audience. He explained how Napiers has accelerated its growth and development over the last two years in China by working with parent company Samarkand.

The company has tailored its marketing and branding strategy in Scotland to target local Chinese consumers, and he explained that: “Edinburgh has many Chinese students and tourists. We have tapped into that audience via Xiaohongshu, and have run many offers like a special Chinese New Year offer to bring in Chinese student consumers based in Edinburgh”.

“Chinese consumers have much higher standards for packaging and presentation of products, and this has helped Napiers to level up our packaging and presentation of products”.

Koyappalli also spoke about how the brand has adopted a multi-channel approach to the Chinese market, using live streaming, social media platforms, offline and other online channels, with Napiers’ first live stream on Douyin doing an amazing three years’ worth of sales in one session.

Iain Stirling, Commercial Director of Arbikie — who sat in the audience — also joined in to share his insights on China’s beverages market, sharing how CBBC supported him to enter the market via China’s CIIE tradeshow. He described how Arbikie is a “family-run and legacy business, so it suits the Chinese market well”, with Chinese consumers valuing brand story and integrity. He added that face-to-face engagement is key to unlocking the Chinese market and observed the increasing interest amongst Chinese consumers in whisky, stating that UK distilleries should get ready for an influx of Chinese whisky lovers!

To round off what had been a thought-provoking session, each speaker shared one key tip for success in the China market.

• Joanna Zhou: “Don’t work with people you don’t trust; don’t doubt the people you work with”.
• Sarah Armstrong: “Keep adapting and start small. Even with a small slice of the market, brands can do well in China”.
• Arjun Koyappalli: “Make sure you tailor your strategy to the Chinese consumer”.

The event’s second Panel Session focused on the theme ‘Top tips to build a successful China strategy – the views from Chinese importers and retailers’, with CBBC’s Chief Commercial Officer, Claire Urry, hosting a discussion with William Dunne, Senior Business Development Manager at Poizon; Isabella Liu, International Brands Director at Matro Group; and David Hampstead, CEO and Co-Founder of Samarkand Group plc.

William Dunne, Senior Business Development Manager at Poizon – a luxury marketplace for Gen Z in China – described the value of Chinese social media platform Xiaohongshu, stating how it originated as a means for Chinese consumers to find niche brands. With Poizon’s key demographic being 25-year-olds seeking individualism, Xiaohongshu has allowed it to reach and connect with consumers interested in its unique products.

Dunne also described the role of social commerce in China, with shoppers often engaging with KOLs that they trust more than they do with brands. Consumer trust is key to cracking the Chinese market, and live streaming with trusted KOLs is a great way for brands to do this.

“For us, live streaming is a big part of our business; it’s how we started… KOLs have more of an impact in China when it comes to driving sales than in other markets…Social commerce is an ecosystem that you have to buy into in order to do well in China,” said Dunne.

Dunne shared that consumers in China are very savvy and do a lot of research prior to purchase compared to their international counterparts, and therefore, having an established brand presence and transparent supply chain in the UK is a huge advantage for brands interested in exporting to China.

With 100 million monthly active users on Poizon, the company currently only sells to China, however, it will expand its app into the US and EU. The company is also trying to tap into the Chinese diaspora in the UK now. In addition, Poizon is also seeing an increased demand for ‘real life experiences’ amongst its Chinese consumers that span beyond what just an app can offer.

He noted the importance of taking risks in the China market, saying: “You have to be willing to take a calculated risk in China, but with the right positioning, China is definitely capable of being unlocked”.

Isabella Liu, International Brands Director at the Matro Group – one of China’s leading retailers – shared her view that sustainability is a key trend inspiring Chinese consumers’ purchasing behaviour. With Matro Group based in Suzhou, known for its UNESCO world-heritage sites, she shared how the city’s well-educated and relatively affluent local population is invested in the sustainability of their purchases.

She shared how Matro Group continues to adapt and evolve in the Chinese market to remain innovative. Part of this adaptation was the establishment of the company’s app, Boundless Matro, which supports international brands with cross-border e-commerce. Liu described how Matro’s strong reputation ‘rubs off’ on brands featured on its app, winning trust amongst Chinese consumers, and how the company is also making strides to “develop and incorporate VR technology to present the authenticity of brands”.

Liu also stressed the importance of brands “thinking globally, acting locally,” and considering future trends and what consumers need, with experience-oriented consumption being a key trend for the future.

David Hampstead, CEO and Co-Founder of Samarkand Group, stated that Scottish brands need to find a partner that matches their appetite for the Chinese market, not one that will push brands too hard to enter and expand in-market.

He stated that it is useful to look at the brands that your selected partner works with to see if they will be a good fit for you. Having a strategy based on any one platform is risky as channels change and grow constantly, so having a multi-channel strategy is key. He also noted that, for Scottish brands, it would be a benefit to find a partner that understands Scotland and can help to champion Scottish identity. It can also be good to work with multiple partners to address multiple needs in the Chinese market. However this presents a challenge when it comes to ensuring harmony amongst partners and stable pricing.

Hampstead noted that “Chinese consumers are a very astute consumer group” and pointed to the importance of the rise of consumer nationalism. “National brands are growing in popularity,” he cautioned. “Fifty percent of beauty brands are now Chinese brands in China, and Chinese brands can react much quicker to local social media trends.”

Hampstead also echoed Dunne’s point that investment in social commerce is vital to success in China, with Xiaohongshu being key to the market as it is a first point of contact and research for Chinese consumers interested in your brand.

With the conclusion of the second panel session, the audience had the chance to pose questions to all of the speakers, addressing issues such as budgeting, how best to work with partners, brand visibility and case studies such as that of Tangle Teezer, which achieved success in China via organic online endorsements via KOLs.

After the panel sessions finished, the audience enjoyed two deep dive presentations: ‘Cracking the Chinese market: Proven tips for new and seasoned exporters’, delivered by Woodburn Accountants & Advisors’ Head of Business Advisory, Kristina Koehler-Coluccia, and ‘Unlocking China’s digital frontier: Navigating trends, influencers, and e-commerce triumphs’, delivered by Bark Media’s Managing Partner, Dora Zhou.

Following a light lunch and networking, Scottish consumer brands in attendance took part in CBBC’s Meet the China Buyer and Meet the China Expert sessions, with opportunities to meet buyers and panellists one-on-one to collect further insights, establish partnerships and receive individualised advice and recommendations.

If you have any consumer enquiries, please don’t hesitate to contact antoaneta.becker@cbbc.org or celine.tang@cbbc.org and we would be happy to assist you.

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