Consumption Boosters in China
Chinese consumer behaviour has undergone a remarkable transformation in recent years, driven by a combination of evolving consumer preferences, digitalisation, and the emergence of unique cultural movements.
Among these trends, two significant forces have captured the attention of both domestic and international brands: the so called “guochao” [国潮] movement, which translates as “national wave” or “China fashion” and co-branding. This article explores the fascinating interplay between cultural pride, digital prowess, and the rise of collaborations in China that is sparking a retail revolution!
Understanding Chinese Consumer Behaviour
Chinese consumer behaviour is shaped by a diverse range of factors, including cultural values, social dynamics, and economic conditions. Traditionally, Chinese consumers were known for their price sensitivity and preference for established international brands. However, the new generation of Chinese consumers, especially millennials and Gen Z, have distinct characteristics that are reshaping the market.
1. Rising Middle Class
With the rapid growth of the middle class, Chinese consumers now have higher disposable incomes, leading to an increased focus on quality and brand experience rather than just price.
2. Digital Savviness
China boasts the world's largest e-commerce market, with consumers embracing digital platforms and mobile payment methods. This has given rise to an online-to-offline (O2O) integration model, blurring the lines between online and offline retail experiences.
3. Individuality and Self-Expression
The younger generation of Chinese consumers seeks individuality and self-expression through their purchasing decisions. They desire unique and personalised products that align with their identity and values.
The Rise of Guochao
Guochao, meaning "national wave" or "Chinese fashion", has gained immense popularity among Chinese consumers. It represents a cultural movement celebrating Chinese heritage and homegrown brands, challenging the dominance of international labels. Guochao embodies a sense of national pride and nostalgia while incorporating contemporary aesthetics and trends.
1. Embracing Chinese Identity
Guochao taps into the growing trend of cultural renaissance, with consumers seeking products that reflect their Chinese identity. By embracing traditional motifs, symbols, and craftsmanship, guochao has created a growing niche market for domestic brands to thrive.
2. Social Media Influence
Guochao owes much of its success to the power of social media platforms like Weibo, WeChat, and Xiaohongshu (Little Red Book). Influencers and Key Opinion Leaders (KOLs) play a crucial role in amplifying guochao trends and driving consumer interest through engaging content and product recommendations.
3. Collaboration and Co-Branding
Co-branding has become a key strategy within the guochao movement, where domestic brands collaborate with influential designers, celebrities, or international labels. Such partnerships leverage the strengths of each brand, combining Chinese elements with global design expertise, resulting in unique products that appeal to a wider audience.
To learn more on how the guochao trend was harnessed to capture tech-savvy and proud Chinese Gen Z’s attention, check out our in depth case study “Chinese tradition meets modern trends” of our award-winning work for 2022 Douyin E-commerce Food Industry Conference.
The Impact of Co-branding:
Co-branding has emerged as a powerful tool for brands looking to tap into the growing guochao trend and Chinese consumer behaviour. It offers several benefits for both domestic and international companies.
1. Increased Relevance
Co-branding allows brands to stay relevant in a rapidly evolving market by aligning with current trends and consumer preferences. Collaborating with guochao-inspired brands helps international companies gain a deeper understanding of the Chinese market and enhance their local appeal.
2. Expanded Consumer Base
Co-branding enables brands to access a wider consumer base by leveraging the partner's existing customer loyalty and market presence. This cross-pollination of audiences facilitates the introduction of new products and increases brand visibility.
3. Enhanced Brand Image
Co-branding partnerships often generate positive associations and goodwill for both brands involved. Collaborating with reputable Chinese brands or cultural icons helps international companies build trust and authenticity among Chinese consumers.
1+1>2!
Co-branding is popular, especially for mobile phone brands, as demands for such devices are increasingly diverse and personalised in the highly competitive Chinese market.
OnePlus, a sub-brand of Chinese electronics manufacturer OPPO, on-boarded the hugely popular video game Genshin as a strong co-branding partner for this year's marketing of its latest gaming-focused smartphone.
When the OnePlus Ace 2 was released this year, it quickly gained popularity among consumers seeking a mobile phone with an exceptional gaming experience. To create a buzz and engage with gaming fans, OnePlus partnered with Genshin Experience Lab to hold a simultaneous 10-cities pop-up event.
To learn more about the case, click here.
Conclusion
The confluence of Chinese consumer behavior, guochao, and co-branding is an electrifying journey like no other. It's a captivating fusion of cultural pride, digital marvels, and creative collaborations that shape the retail landscape in China, a market, where traditions meet innovation, and consumers reign supreme!
About the Author
Katja is an anthropologist and sinologist and has been serving in various event, marketing and communication leadership roles for the past 15 years. She is a keen observer and occasionally loves to poke bears.
- name
- Katja Sassi-Bucsit
- role
- Director Global Communication
- location
- Cologne, Germany