Traditional Culture... Chinese Consumers Seeking Local Brands... Patriotic Marketing on the Rise

[Asia Economy Reporter Hwang Yoon-joo] As patriotic consumption emphasizing domestic culture and products expands among Chinese consumers in their teens and twenties, there is a growing call for Korean companies to actively utilize ‘Guochao (國潮) marketing,’ which incorporates elements of China’s traditional culture.

According to the ‘Rise of Chinese Brands and Patriotic Marketing’ report released on the 20th by the Korea International Trade Association’s Beijing branch, the preference for domestic brands among Chinese consumers is gradually spreading due to heightened awareness of crisis amid the prolonged US-China trade dispute, improvements in the quality of domestic products, and government policies to strengthen local brands.

The report stated, "The ‘Guochao’ craze, which combines Sinicization, trendiness, and globalization, began in 2018 and has established itself as a strong consumer trend through the US-China trade dispute and COVID-19, receiving great response especially from the post-90s generation (Jiulinghou) and post-2000s generation (Linglinghou). The Chinese government is also actively encouraging the use of domestic products by announcing policies to strengthen local brands as it seeks to transition from a ‘manufacturing power’ to a ‘manufacturing strong nation.’"

According to surveys by Baidu, China’s largest search engine, and People.cn under the People’s Daily, interest in local brands among Chinese consumers rose from 38% in 2009 to 70% in 2019, and perceptions improved from ‘cheap’ to ‘cost-effective.’

In fact, China’s sportswear brand Li-Ning increased its sales by 32% in 2019 compared to the previous year through marketing using retro-style traditional Chinese characters and the color red, and the domestic company Changan Automobile has held the number one spot in SUV sales in China for 84 consecutive months. The state broadcaster CCTV also introduced 26 domestic brands including Huawei and Xiaomi during the prime time 8 PM slot on ‘Chinese Brands Day.’

Park Min-young, head of the Korea International Trade Association’s Beijing branch, emphasized, "Along with the rise of Chinese local brands, the preference for domestic culture and products is becoming prominent especially among young consumers. Korean companies need to actively utilize Guochao marketing by incorporating Chinese culture into their products and services, while also adopting a premium strategy that goes beyond cost-effectiveness."

This content was produced with the assistance of AI translation services.