Even if it says 'CHINA' printed, won't buy if foreign brand... China's 'Patriotic Consumption' Craze

Chinese Consumers Engage in Patriotic Buying Amid Rising International Conflicts
Nike, Adidas Launch Specialized Products but Face Sluggish Sales

Global brands are facing a double blow due to China's sluggish economic recovery and the Chinese people's growing preference for domestic products.

On the 18th (local time), The Wall Street Journal (WSJ) analyzed that while foreign brands dominated the Chinese consumer market just five years ago, now many Chinese brands have taken over the country's online and offline shopping markets.

According to WSJ, the 12-color eyeshadow palette from Chinese cosmetics brand Perfect Diary is priced as low as $15 (about 19,000 KRW), which is much cheaper than L'Or?al's 6-color eyeshadow palette priced at $23.

Not only Perfect Diary, which offers cosmetics better suited to Chinese skin tones, but also another startup, Florasis, raised its combined market share in China's color cosmetics market to 15% as of 2021. Six years ago, these companies' market share in China was close to 0%.

As US-China tensions escalate, young Chinese consumers join 'patriotic consumption'

Amid this, Western global brands are also responding by offering customized products and marketing strategies for Chinese consumers. In Nike's case, they produced and released sneakers featuring the twelve animals of the Sibiji (十二支).
[Photo by AP·Yonhap News]

In particular, amid US-China tensions, young Chinese consumers have increased their interest in their cultural heritage and joined the 'patriotic consumption' trend, which appears to be empowering China's emerging brands.

The newspaper analyzed that the patriotic consumption craze known as 'Guochao (國潮)' was further ignited after Chinese brand Li-Ning showcased a sportswear collection in red and gold, symbolizing China, at the New York Fashion Show in 2018. Sneakers from this brand, founded by Olympic gymnastics gold medalist Li Ning, remain popular despite their $200 (about 256,000 KRW) price.

Global investment bank Morgan Stanley forecasts that Li-Ning and China's Anta Sports will increase their market share in China's sportswear market from 15% in 2020 to 22% next year.

Morgan Stanley also expects Adidas's market share in China to drop from 19% in 2020 to 11% next year. Adidas faced strong backlash on Chinese social media, including boycotts, after issuing a statement regarding forced labor allegations in China's Xinjiang Uygur region.

Additionally, Yunnan Baiyao Group's toothpaste, which emphasizes ginseng and herbal ingredients, outsells Procter & Gamble (P&G) in China, marking another example of the rise of Chinese brands.

Consumers visiting a shopping mall in Beijing last February on Valentine's Day
[Photo by EPA·Yonhap News]

Meanwhile, Western global brands are responding by launching customized products and marketing strategies for Chinese consumers.

Adidas released sportswear featuring its signature three stripes along with the word 'CHINA' printed in bold on the sleeves, while Nike produced sneakers adorned with the twelve animals of the Chinese zodiac.

American luxury brand Coach created clothing featuring the popular 'White Rabbit Candy' logo in China, and L'Or?al operates an online store on Douyin, the Chinese version of TikTok, offering beauty consultations via video calls.

James Yang, a partner at Bain & Company’s Shanghai office, told WSJ, "Simply bringing in more (foreign) brands and opening stores is no longer enough," adding, "Chinese brands are releasing ‘customized’ products that appeal to Chinese consumers, and while prices are low, the quality gap has narrowed significantly compared to before."

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