| 繁体 | 简体 |

Rise of Chinese Brands: Why Do New Domestic Popular Products Frequently Emerge?

August 20, 2021

In the new era, the aspirations of the Chinese people to live a better life highlight the importance of new fashion and home-grown brands. Chinese brands, including White Rabbit, Warrior and Bee & Flower, have reinvigorated themselves, and Herborist, HIPANDA, and Sandriver are beginning to set trends both domestically and internationally. As China steps up its efforts to drive the new development paradigm of "dual circulation", home-grown brands keep rising one after another, and domestic popular products constantly emerge. This offers new growth opportunities for domestic brands. In July this year, five major Chinese cities including Shanghai took the lead in developing international consumption center cities.

In July this year, five major Chinese cities including Shanghai took the lead in developing international consumption center cities. These cities need to meet consumer demands sharply increased as more and more domestic products have become consumers' new needs and fashions.

Bright Dairy & Food Co., Ltd. ("BRIGHT") has upgraded its two classic products of Brick-Shaped Ice Cream and White Rabbit Creamy Candy, established partnership with the Chinese Lunar Exploration Program, and become the exclusive sponsor of China in Classics, a variety show going viral across the country. According to Lu Junfei, vice president of BRIGHT, the company has digitized the entire brand to facilitate seamless connection and communication with users on the product and marketing sides. This allows BRIGHT to truly tap user needs and quickly upgrade its products, driving the rise of the new domestic products.

"The increase of hard and soft power of local companies will surely drive the rise of domestic brands, and IP-based crossover marketing and co-branding campaigns will greatly promote their influence to break out of their niche," said Lu Junfei. He holds that crossover is essentially to expand consumption scenarios and groups. In this process, digitization plays a key role for time-honored or domestic companies.

According to Gao Weihe, a professor at the College of Business, Shanghai University of Finance and Economics, in the 21st century, home-grown high-tech products such as mobile phones and automobiles have entered the mainstream market, earning widespread recognition among a new generation of consumers. In the new era, cultural and creative IP products featuring traditional Chinese culture have initiated a new round of "Chinese fashion trend", exporting new ideas of fashion from China to the world.

Professor Zhou Ying, EMBA program director of Antai College of Economics and Management, Shanghai Jiao Tong University, puts the popularity of products down to the "four benefits" from economic development, Internet traffic, government policy and consumption behavior.

Zhou Ying explains that the emergence of any successful products is largely due to good timing, favorable business environment, and popular support. The effect of economic development is of paramount importance. With the rise of China's economy and the increase in the value of domestic brands, consumption of home-grown products has become a fashion, which makes it possible for such products to become widely known. Thanks to the demographic advantages and the rapid popularity of the Internet, China has become the biggest beneficiary of Internet traffic. On top of that, domestic brands benefit from government policies. The support policies from relevant authorities, along with active promotion on major e-commerce platforms have enabled domestic brands to embark on a fast lane of growth.

Zhou Ying points out that beyond favorable business conditions, consumption behavior provides a closed loop for the "four benefits". Different from the past, the benefit from consumption of this round of home-grown popular products is brought by the changes in the demand of Chinese consumers: from making do with to being choosy about products, from pursuing quality to pursuing taste, from valuing price to focusing on experience, from "have wanted" to "being with it", and from pleasing others to pleasing oneself.

20 years ago, when Guo Xiuling (Juliet Guo), founder of Shanghai Sandriver Fashion and Technology Co., Ltd, returned to Shanghai from Germany, she did contract manufacturing for a large number of luxury brands. A decade ago, Ms. Guo created the high-end artistic cashmere brand Sandriver in Shanghai. In August last year, Sandriver begun to sell its products at Le Bon Marché, one of France's top department stores, where a Sandriver cashmere blanket costs €3,000.

Ms. Guo believes that only the local products that truly represent the quality of Shanghai manufacturing and show originality can win the heart of global consumers. It is the proper attitude of an international consumption center city to allow Chinese brands to show their highlights.

"In the long run, domestic brands must strengthen innovation efforts and innovate their business models and gain insight into the real needs of Gen Z, so that they can continue to provide inspiring and valuable products to consumers." Zhou Ying stressed that new domestic brands must work step by step to achieve success in the market. If domestic popular brands want to keep growing, they must depend on technology and excellent products for long-term popularity.