The trends in China are shifting and for the better. With some recent regulatory changes and the country’s economic profile, there are 4 key trends you need to understand and capitalize on to grow your business in China.
The economic profile of the Chinese market in 2023
The 4 trends in China in 2023
1. Digitalization: Blending the boundaries between real and virtual worlds.
2. The rise of Web3
Despite the 2022 crypto-apocalypse, blockchain technologies continue to attract and give rise to new products. A company that leveraged one of the newest trends in China quite effectively is Burberry. In June 2022, they launched their own NFT (Non-Fungible-Token), the “Burberry Blanko.”
It’s not just international brands either. Alipay understands Chinese consumer habits quite well, and they announced the launch of 8,000 NFTs based on historical artwork.
Tencent even announced a dedicated NFT platform called Huanhe. Even the state-owned companies Mango TV and Xinhua News Agency are launching their NFTs. In fact, demand is so strong that the Business Wire reports that the industry is expected to reach $48 billion by 2028.
3. Gen-Z: The future generation
The third of the China trends 2023 is arguably the most lucrative. In fact, according to Tencent, this segment makes up an astonishing 50% of luxury goods consumers. Let that sink in…
It’s a vital demographic for beauty and luxury brands. They are major social media users and rely on online platforms a lot.
Also known as digital natives, they are tech-savvy and highly individualistic, with a powerful desire for self-expression. In fact, according to survey data, 50% of Gen Zs have a passion for the latest and newest experience. They put a premium on brands that align with their values.
Gen-Z’s purchasing habits are (to some extent) influenced by peer pressure and social validation. They absolutely love user-generated content, reviews, and other online and offline feedback mechanisms. They are very vocal, which comes with benefits and risks.
If they love a product, they will quickly share it with friends and family, both offline and online. On the other hand, if they dislike a product, you can expect to know about it quickly. Customer support is critical here. You can create a powerful brand by ensuring you get ahead of any issues.
A solid online presence will attract their gaze (and purchasing power). Unlike previous generations, Gen-Z believes their material possessions should reflect their identity. As such, they are more likely to seek natural ingredients, sustainable products, and generally, goods that align with their values.
Influencer marketing is a powerful sales driver with this demographic. And, of course, providing them with personalized experiences can tap into their need for self-expression.
4. A buyer’s market
While not substantial, this trend in China remains important. Unlike the previous generation, modern consumers have become more careful buyers. With the availability of online information, they will take the time to thoroughly research a product before buying it. They will compare its quality and price and seek to compare different platforms and their pricing policy.
For instance, they will browse e-commerce platforms such as Taobao and JD, carefully check WeChat groups for coupons, watch Douyin live streams for deals, and good old brick-and-mortar stores.
Despite being known (and for good reason) for their saving habits, Chinese consumers are willing to spend more on premium products. With that in mind, crafting a marketing strategy that aligns with this market reality is paramount. Companies peddling subpar products may generate sales in the short term, but sooner or later, they will face backlash, and their brand will not recover easily.
The trends in China 2023: Key Takeaways
- Convert Gen Z stat—they will evangelize for you
- Anger them, and they will ensure the world knows of your failings.
- Social media is the #1 way to capture this growing segment.
- Differentiators will win, while those in a price race to the bottom will see their profits decrease.
- Web3 is far from dead, and AI technology may come to play a role.
Voila! If you have any questions, leave us a comment below, and we’ll get back to you asap.