On 30 January, CBBC hosted China Consumer Scotland 2025 at drinks brand Edrington’s Glasgow headquarters. The event focused on Scottish consumer brands in China, with a strong presence of whisky makers and luxury clothing companies in the audience.
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.