China unfiltered: thoughts on the world’s most dynamic economy from our PROI partner in Beijing

Recently, I had the privilege of diving into China’s communications, media and consumer landscape with the KISS team. After nearly 20 years in China, I still find it one of the most fascinating and fast-moving markets on the planet. I absolutely love unpacking all of the amazing nuances of the region, as it’s full of surprises at every turn.

No doubt, recent global headlines haven’t exactly told the most flattering story about China—but beneath all the noise, it remains a powerhouse of consumer energy, cutting-edge tech and trends that move at lightning speed. There’s never a dull moment in this market, and peeling back the layers to reveal its real potential is always an exciting challenge.

Yes, China’s economy has faced challenges, but don’t let that overshadow its sheer scale and resilience. Consider these facts:

• China is a B2B powerhouse: China boasts the world’s largest industrial market, contributing 30% of global manufacturing output. With a digitalisation market worth $1 trillion, investments in IoT, cloud computing and AI are shaping industries.

• China is powering green innovation: Ambitious sustainability goals are unlocking opportunities in renewable energy, green tech and urbanisation projects like smart cities.

• China boasts great B2C Strength: By 2030, China will account for over 20% of global consumption growth. The nation’s 400 million-strong middle class is a driving force in luxury goods, e-commerce and experiential spending.

This is a market where UK brands, with their reputation for quality and innovation, can truly shine. The key is understanding the nuances and knowing how to connect with Chinese consumers.

A social media ecosystem like no other

Forget Facebook and Instagram - China’s digital ecosystem is a world of its own, dominated by platforms like WeChat, Douyin and Xiaohongshu (Rednote). Here's why these matter:

• Massive user engagement: WeChat alone has over 1.6 billion monthly active users, seamlessly blending messaging, e-commerce and content sharing. Douyin (China’s TikTok) reaches 760 million users, dominating short-form video content.
• Online influence is king: Nearly 60% of Chinese consumers make purchase decisions based on user-generated online information. Word of mouth, amplified by influencers, carries unmatched weight here.
• Localised dynamics: Chinese citizens are not passive observers; they’re highly engaged creators, conversationalists and critics. Brands that leverage these behaviours effectively can build deep and lasting connections.

UK brands need to recognise that success in China hinges on mastering this unique social media landscape. That means crafting tailored strategies for platforms, partnering with key influencers and creating content that resonates with local audiences.

Key trends and growing sectors to watch

For UK brands looking to stay ahead of the curve, it’s essential to align with China’s rapidly shifting trends and tap into its fast-evolving market. Here’s where the action’s happening:

• Tech and sustainability: China is pouring a staggering $600 billion annually into R&D, driving the country to the forefront of green tech and innovation. Whether it’s cutting-edge gadgets, eco-friendly solutions, or energy-efficient services, this is a goldmine for brands offering sustainable, high-tech products.
• Guo Chao ('National Wave'): This cultural movement is all about blending traditional Chinese aesthetics with contemporary design, fuelled by a renewed sense of national pride. Brands that can weave Chinese cultural elements into their offerings will tap into a deeply resonant trend with massive appeal.
• Experience over materialism: Post-COVID, Chinese consumers are shifting gears. They’re spending less on ‘stuff’ and more on lifestyle and well-being. From wellness products to transformative travel experiences, there’s a growing demand for quality-driven, innovative services that enhance personal fulfilment.
• Live-streaming e-commerce: China’s e-commerce market has soared to an astonishing $2.8 trillion, with nearly 20% of all sales driven by live-streaming—cementing its status as a global powerhouse in digital retail. For UK brands diving into this interactive, real-time shopping experience, it offers a thrilling way to engage and connect with Chinese consumers on a personal level.

Some tips for UK brands entering China

Breaking into the Chinese market isn’t without its challenges, but with the right strategy, the potential rewards can be game-changing.

• Localisation is key: It’s not just about translating your content - tailor your product, services and messaging to reflect local tastes and preferences.
• Build relationships: Time spent developing 'guanxi' (networks) with local stakeholders can pay significant dividends. From government agencies to business partners, connections matter.
• Stay digital-first: Whether targeting Gen Z or older demographics, digital channels are essential. An omnichannel strategy combining social media, e-commerce and traditional media will yield the best results.
• Understand cultural context: Be aware of geo-political sensitivities and align your brand values with China’s national priorities. Brands that demonstrate respect for local culture earn trust and loyalty.

China is a dynamic market, rich with opportunities for those willing to adapt and innovate. The social media ecosystem alone offers a treasure trove of tools to engage with a massive, highly engaged audience. Add to that the sheer scale of its economy and its forward-looking trends, and it’s clear why this is a market UK brands can’t afford to ignore.