Cutting through the noise in 2025: building brand equity beyond AI in China

Happy New Year! We hope 2025 is off to a great start for you. One of the defining trends this year is the continued evolution of AI's impact on marketing – a maturing of last year’s big theme. We anticipate that by the end of this year, AI will play a role in producing over 90% of advertisements.

While AI is making marketing easier on the surface, it is making marketing more challenging overall by raising the bar for success around the world. In a crowded digital landscape, particularly in a market as competitive and digitally-centric as China, standing out will demand smarter, more holistic initiatives.

The Double-Edged Sword of AI in Marketing

AI is revolutionising marketing by enabling faster, more efficient, and cost-effective communication – whether targeting the masses or niche groups. By democratising content creation, AI has lowered barriers for small brands and individual creators to produce high-quality materials that rival major players.

However, this democratisation isn’t without a cost: oversaturation. As content feeds become inundated with AI-generated material, much of it risks becoming homogenous and losing authenticity. Brands will need to elevate their game to truly engage and resonate with their target audience.

From Transactions to Long-Term Connections

In an era of commoditised content, the emphasis on building brand equity beyond short-term transactions has never been greater. To succeed, brands must focus on emotional connections with consumers – something AI can enhance but cannot fully replicate.

While AI outputs are improving, they often lack the x-factor that comes from the human touch (although a lot of human-created marketing falls short too!). For example, despite AI’s scalability and reliability, virtual bots haven’t replaced human livestreamers because they can’t yet match the authenticity and emotional resonance audiences expect.

Conversely, for operational tasks like customer care, where creativity and differentiation are less critical, AI-powered bots have become widespread and highly effective.

Old-School Meets New-School

Ironically, in an AI-driven world, old-fashioned touch points like physical stores are emerging as powerful tools to differentiate brands and foster human connections. Taobao design brands, traditionally focused online, are increasingly opening brick-and-mortar stores. These spaces help them stand out, reach new customers, and address growing challenges around growing acquisition costs and return rates.

Beyond the Obvious AI Applications

The most visible applications of AI in marketing – like content generation – are just the tip of the iceberg. Some of the most effective, yet less glamorous, uses of AI are behind the scenes. These include enhancing manufacturing processes, streamlining delivery, and enabling near-real-time personalisation. Such operational improvements not only boost efficiency but also create richer, end-to-end customer experiences that are much harder to commoditise.

The Road Ahead

This year, brands would be wise to think beyond the obvious when planning AI strategies. Success will come from integrating AI in thoughtful, innovative ways that cut through the noise and build lasting connections with consumers.

If you’re ready to take your AI strategy to the next level, China Skinny is here to help. Wishing you a successful and impactful year ahead!