China brand strategy is changing fast. Legacy branding and global fame are no longer enough. A new report by Alibaba and Peking University’s Consumer Brand Index (CBI) analyzes the behavior of nearly 1 billion Chinese consumers. The data reveals five key shifts that brands must act on to stay relevant in 2025 and beyond.

1. Product Performance Wins Trust

Chinese consumers want evidence.

• Clinical results now matter more than marketing slogans.

• SkinCeuticals gained market share by publishing dermatologist-backed content and using real product data.

• It ranked 82nd in the index without relying on celebrity endorsements.

  Action: Share measurable product outcomes. Use expert voices and transparent testing to build trust.

2. Local Brands Are Catching Up Fast

Local players are using speed and insight to win.

• In pet care, six of the top seven brands are domestic.

• Pop Mart grew rapidly by letting consumers shape their own identity through the product experience.

  Action: Shorten your product development cycle. Adapt fast to local needs and behaviors.

3. Niche Beats Mass Appeal

Growth is coming from focus, not scale.

• Laopu Gold reached the top 20 by focusing on ancient Chinese craftsmanship.

• The brand operates few stores and avoids mass exposure.

  Action: Pick a niche. Build depth, not breadth. Elevate cultural or functional value instead of scaling wide.

4. International Brands Must Localize

Global reputation helps, but it no longer leads.

• Apple still performs well, but brands like Huawei and Xiaomi are gaining quickly.

• Chinese shoppers want quality, but they also expect localized innovation.

  Action: Tailor product features, content, and services for Chinese preferences. Don’t recycle global campaigns.

5. Tier-2 Cities Are Now the Growth Engine

Cities like Zhengzhou, Chongqing, and Hefei are outpacing Tier-1 metros.

• These consumers expect the same variety and quality but prefer regional marketing and community-driven content.

  Action: Invest in local logistics, region-specific campaigns, and city-level insights.

What You Should Do Now

• Prove value with measurable results

• Localize everything: product, pricing, content

• Focus on narrow markets with clear needs

• Prioritize Tier-2 cities with tailored outreach

• Treat China as a core market for innovation

China brand strategy in 2025 requires agility, insight, and local relevance. Need support adapting your brand for China’s new reality? Contact us to get started.