Building brand relevance and fostering customer loyalty in China’s dynamic consumer market requires a nuanced understanding of evolving consumer behaviours and strategic engagement across various platforms. This article delves into key strategies, including emotional marketing, connecting with more cautious consumers, targeting niche consumer segments, and leveraging social commerce, to effectively connect with Chinese consumers.
Emotional marketing: Connecting beyond the product
In recent years, the importance of building emotional connections with consumers has gained prominence, especially for brands targeting younger consumers. Products that offer emotional fulfilment, such as hobby-related purchases and even blind boxes, have become central to the purchasing logic of Gen Z. During the Singles’ Day shopping festival, surveys showed that more than 40% of young consumers prioritised emotional value when making purchasing decisions.
Brands can tap into this trend by creating products and marketing campaigns that resonate emotionally with consumers. A strong example of this is brands finding a way to speak to female empowerment, an increasingly important topic among China’s younger generations. Jack Porteous, Commerical Director, TONG Global (who will be speaking at the UK-China Business Forum on 5 March), points to Aesop, which leveraged its International Women’s Day campaign by spotlighting a diverse range of female authors and distributing their work. This type of meaningful storytelling aligns with consumer values and aspirations, enhancing emotional connections and brand relevance.
Building trust to appeal to cautious consumers
Economic uncertainties and shifting social attitudes have led to more cautious consumption patterns among Chinese consumers. A type of “luxury shame” has emerged, where individuals refrain from luxury purchases (or at least showing them off) due to economic slowdowns and government crackdowns on extravagant displays (including shutting down the social media accounts of influencers considered to be flaunting their wealth). Consequently, consumers are becoming more discerning, opting for value-retaining, recognisable luxury items over trendy purchases.
To build trust and demonstrate value, brands should focus on transparency, quality, and sustainability. Communicating the enduring value and craftsmanship of products can appeal to consumers seeking long-term value. Moreover, aligning with cultural values and offering localised products can enhance brand relevance. That being said, brands should avoid superficial attempts at localisation, such as merely adopting traditional Chinese motifs for the Lunar New Year. Stanley Mugs, for example, failed to create a meaningful connection with the festival in their Chinese New Year collection. “British brands should first be confident to express their own brand identity and what makes them unique, localising the tone and presentation to best suit a Chinese audience,” Porteous advises.
Understanding niche consumer segments
China’s consumer market presents a unique blend of tradition and innovation, with opportunities across multiple sectors. The country’s evolving consumer behaviour is guided by trends toward wellness, premiumisation, and lifestyle enrichment, driven by urbanisation and changing family structures.
A recent report by WPIC Marketing +Technologies highlighted the beauty, personal care and fashion segments, which have shown robust growth in 2024. Driven by post-pandemic demand, beauty product sales increased by 6%, personal care by 2.3%, and fashion by a remarkable 14.4% in 2024. This resurgence is accompanied by trends such as creative makeup, scientific skincare, “quiet luxury” and athleisure wear.
For early-stage brands in the market, brand relevance means finding the right channel and having an extreme focus on their niche – connecting the brand’s proposition to a consumer need. More established brands can focus on building community as a way to establish deeper relationships. Porteous points to Brompton Bicycles as an example of a brand that has done this well, hosting a “Brompton World Championship” in China in 2024, which leaned into the lifestyle aspect of the brand and fostered a passionate community.
The key role of social commerce
Social commerce has become a crucial component of China’s digital retail landscape. Platforms like Xiaohongshu (also known as RED or Little Red Book) and Douyin have successfully integrated e-commerce with social media, allowing users to seamlessly share and read product experiences and make purchases within the app. Unlike traditional e-commerce platforms, many of which emphasise volume and discounts, Xiaohongshu, in particular, focuses on aspirational lifestyles, attracting financially independent users who are less price-sensitive.
Brands should establish a strong presence on platforms like Xiaohongshu and Douyin, collaborating with influencers (especially so-called niche or micro-influencers, also called key opinion consumers (KOCs) in the Chinese context) and creating engaging content that encourages user interaction. Live streaming, mini-dramas, and key opinion leader (KOL) marketing are essential strategies to convert social engagement into sales. Additionally, successful brands have adapted to shifts in channel preferences and societal changes among their consumers, ensuring they communicate with their audience on their own terms.
Conclusion
Building brand relevance and customer loyalty in China’s consumer market necessitates a deep understanding of evolving consumer behaviours and strategic engagement across various platforms. Whether through emotional marketing, addressing cautious consumption, targeting niche segments, or leveraging social commerce, brands must remain agile and consumer-focused. Furthermore, long-term success hinges on ensuring that consumers buy into and love the brand, not just its best-selling product. As major luxury houses like Loewe and Louis Vuitton have demonstrated, effective localisation involves cultural co-creation – partnering with local artists and talents, for example, while retaining the brand’s core identity.
In a highly competitive and rapidly evolving market, brands that prioritise relevance, authenticity, and long-term connection will be best positioned to achieve sustainable growth.
The 2025 UK-China Business Forum is a full-day conference focused on the theme of UK-China partnerships and the opportunities for growth in both markets through export and investment.
During the morning session, the Forum will explore how to develop these opportunities, analysing both the benefits and challenges from a practical point of view, with senior businesspeople sharing their valuable insights through real-life case studies.
In the afternoon, the Forum will examine four key areas:
- Ageing populations, which require a different approach to healthcare, with more focus on prevention rather than cure, there is huge scope for UK-China academic and business collaboration.
- The Chinese consumer, amongst which there is undoubted interest in UK brands, where engagement is built on cultural relevance and emotional connection.
- Smart transport solutions, which have the potential for tremendous benefits, both for the UK as a whole, as well as for businesses and their employees.
- Green transition, an area where China and the UK are both looking for wins and where there is potential for cooperation and growth in both markets.
The event will be followed by CBBC’s Spring Reception.
Click here for more information and to register for the UK-China Business Forum
