The art of simplifying choices: winning strategies in China’s crowded market

Chinese consumers view brands more favourably when they try new things and are seen as trendsetters, compared to those in the West. According to a 2024 PwC survey, 20% of Chinese consumers would be enticed to try another brand based on new products or offerings, compared to 13% globally. However, many Western brands we work with often lack the budgets, internal structures, or appetite for risk to constantly innovate products like some of their competitors in the Chinese market.

The good news is, you don’t need to build new products from scratch. Of the 62,469 new consumer goods launched daily on average in the first nine months of this year in China, many were light tweaks to existing products, repositioned to meet the needs of another target segment, occasion, or through collaborations with well-known IPs. This approach allows brands to create offerings that feel specific, innovative, and fresh to Chinese consumers—without incurring massive product development costs or long regulatory approval processes, if that is a concern for your product category.

Beyond new products and variants, Chinese consumers also respond favourably to innovative ways of selling them.

One of the more interesting trends from this year’s Singles’ Day, which ended last week, was the “blind box” phenomenon. While categories like outdoor gear, pet products, and emotional purchases remain popular, blind boxes have emerged as a standout trend.

The blind box economy in China first gained momentum around 2020, driven by the popularity of mystery toy packages like POP MART. Since then, brands across industries have embraced the concept. From Pringles offering mystery-flavoured crisps to Mi selling suitcases with surprises inside, the trend has rapidly expanded.

This year, Singles’ Day saw blind boxes reach new heights. Some of the hottest items in online supermarkets were blind boxes containing mystery lamb packs, seafood packs, vegetable packs, and fruit assortments. For beer lovers, blind boxes offering mystery beverage combinations remained a classic hit. Surprisingly, even baby diaper blind boxes became a popular choice.

Livestreaming also continues to evolve, incorporating the blind box concept. Viewers pay to purchase blind box products, which are then opened live on the stream. The excitement lies not only in the product reveal but also in the potential to win additional blind boxes.

Although blind boxes are fun and novel, their appeal goes beyond the thrill of surprise. With over 400,000 new products launched weekly in addition to the countless items already available, the abundance of options can overwhelm consumers. For those just looking to buy something to eat or use, blind boxes offer a simpler, stress-free and entertaining way to shop.

From a brand perspective, blind boxes can be sold at lower costs with similar profit margins due to reduced stock forecasting demands. For many brands, this approach provides a more direct way to meet Chinese consumers’ desire for products that feel fresh, trendy, and innovative.

Contact China Skinny to learn how your brand can leverage creative, faster, and less cost-intensive strategies to stay relevant and exciting to Chinese consumers.