Top 5 China Marketing Lessons from January 2025.
As we ring in the Year of the Snake, it’s important to take stock of your brand in China, as consumer behaviour continues to evolve. Falling halfway through the zodiac, the snake symbolises balance, or the need for it; food for thought with AI content saturating our screens precisely at a time when consumers demand more authentic connections.
While the snake is known for its cunning and danger, it is also connected with intuition, authority, longevity and fortune. The shedding of its skin symbolises renewal and transformation; a process that many brands may need to go through to strengthen their presence in China.
With AI disrupting the market and consumer demanding more emotional and authentic content, balance is something that most brands will be looking to find in the year ahead. The following are the top lessons from January 2025.
Lesson 1: AI Saturation, Fake Products & Homogenous Goods.
As AI technology rapidly transforms the marketing landscape, China is experiencing an oversaturation of AI-generated content. We estimate that by the end of the year, AI will be responsible for producing over 90% of advertisements. However, this influx of AI-generated material risks homogenising marketing messages, making them less authentic and diminishing their effectiveness in engaging consumers.
Beyond advertising, consumers are getting tired of mainstream brands whose prices continue to rise, yet their perceived value is dropping. Many believe that these brands lack creativity and are ever more homogenous. A recent hot topic on Weibo highlights this diminishing perceived value, “I don’t dare to buy clothes in the mall with a monthly salary of 20,000 yuan” (#薪两万不敢在商场买衣服) went viral, amassing over 230 million views.
At the extreme end we have fake goods which still plague the country. One striking example is the surge of stores selling Russian products, offering items such as sausages, chocolates, and even durian-based confectionary. Many of these products claim to be authentic imports from Russia, yet their legitimacy is questionable. The reality is that China does not permit the import of Russian sausage, and the notion of Russian-grown durian defies agricultural feasibility. As a result, skepticism is rising among Chinese shoppers, many of whom now scrutinise product authenticity more than ever before.
Against this backdrop, consumers are looking for more meaning and connection in their purchases. Millennials, in particular, are prioritising exclusive and memorable experiences. Studies indicate that 67% of millennials seek unique experiences, while 72% value activities that leave lasting impressions. This shift suggests that AI generated content and following global fashion trends or homogeneity are no longer going to generate much traction in China, particularly amongst the younger brackets.
Implications for Foreign Brands in China:
Emphasise Authenticity: Given the rising scepticism toward counterfeit goods, foreign brands must transparently communicate their product origins, quality, and supply chain integrity to gain consumer trust.
Avoid Wholy-AI Content: While AI can be a useful tool for developing content, it should not be THE tool from start to finish. To avoid blending into the oversaturated AI-generated content landscape, brands should invest in unique storytelling, real-life brand ambassadors, and interactive experiences to create a deeper emotional connection with consumers.
Focus on Experience-Driven Strategies: With millennials placing high value on lasting impressions, brands should integrate experiential marketing, such as in-store engagements, pop-up events, and interactive online experiences, to resonate with their target audience.
Lesson 2: Create Authentic & Emotional Connections.
Harper’s Bazaar China Hotpot CEO shoot. Source: SocialBeta
In the current Chinese market, building brand equity beyond short-term transactions has never been more critical. To achieve long-term success, brands must foster emotional connections with consumers, offering more than just a product or service. Authenticity is the key, and it requires a combination of in-person experiences, offline stores, human faces, and compelling storytelling that appeals to the emotional drivers of Chinese consumers.
The Power of Physical Presence
While digital commerce continues to thrive, physical stores are re-emerging as a crucial differentiator for brands. These traditional touchpoints allow brands to create immersive experiences, reinforcing their identity and fostering trust. Taobao-based designer brands have capitalised on this trend by ensuring their offline stores reflect their unique aesthetic, offering a cohesive and memorable brand experience. This level of attention helps consumers feel a deeper connection, leading to long-term loyalty.
The Human Face of Brands
Leadership and employees have often taken a back seat in brand building (with notable exceptions such as Jack Ma); however, the recent Harper’s Bazaar campaign featuring hotpot CEOs exemplifies how business leaders can become cultural influencers. By breaking away from traditional corporate imagery and embracing style and culture, these CEOs leverage common interests, style and the simple human factor to create stronger emotional bonds with their audience.
The Role of Storytelling
Beyond visual branding, storytelling remains a crucial tool for building authenticity. To truly connect, brands must “peel back the onion” and understand the emotional layers of their audience. This includes recognising consumer pain points, aspirations, and sources of fulfilment, then addressing those from your unique brand perspective. This creates more personal and relatable content that resonates with consumers.
Implications for Foreign Brands in China:
Invest in Offline Presence: Establish flagship stores or experiential pop-ups to provide brand experiences that build emotional, experiential and even tangible connections.
Humanise Brand Leadership: Showcase CEOs and employees in campaigns, demonstrating authenticity and relatability to consumers. A faceless brand is difficult to connect with.
Craft Emotionally-Driven Narratives: Understand who your consumers are first, then develop marketing strategies that connect with the emotional their needs, ensuring deeper engagement and long-term brand affinity.
Lesson 3: Lean into Fulfilling Consumption.
Young Chinese consumers experiencing glamping, among other hobbies. Source: RADII
Chinese consumers are increasingly prioritising fulfilment and memorable experiences over material possessions, known as “yueji” （悦己）consumption. This shift reflects a deeper desire for joy, personal enrichment, and lasting memories, significantly influencing purchasing behaviours and brand engagement.
The Shift from Status to Self-Fulfilment
Gone are the days when luxury brands were the primary way to showcase social status. Young Chinese consumers today prioritise value and personal enjoyment over external validation. This cultural shift is reflected in films like "Her Story," where characters opt for comfortable sneakers instead of flashy heels, symbolising a broader rejection of materialism.
A survey by a financial platform under The Beijing News found that 37.4% of respondents under 35 are more willing to spend on their hobbies than on expensive designer goods. This includes niche interests such as skiing, specialty coffee, and craftsmanship, all of which provide long-term fulfilment and joy. Enthusiasts are willing to invest significant amounts, with some spending tens of thousands of yuan on premium equipment and experiences.
Experiences as the New Luxury
Beyond hobbies, Chinese consumers are increasingly paying for fresh and immersive experiences. The 2024 "Double 11" shopping festival saw a surge in spending on travel, gaming, music festivals, and blind boxes—purchases driven by emotion and the desire for meaningful memories.
Analysts attribute this consumption pattern to rising disposable incomes and the pursuit of a better quality of life. As China’s per capita GDP grows, consumers are moving up Maslow’s hierarchy of needs, prioritising self-actualisation over material accumulation.
Millennials, in particular, are driving this trend, with 67% prioritising unique experiences and 72% valuing activities that create lasting impressions. This demographic spends more on luxury travel, wellness, and premium dining, seeking to craft "once-in-a-lifetime" memories rather than merely collecting possessions.
Implications for Foreign Brands in China:
Invest in Experiential Offerings: Brands should develop engaging, interactive experiences that create lasting emotional connections, such as exclusive workshops, pop-up events, or premium lifestyle experiences.
Shift from Transactions to Transformations: Focus on providing products that contribute to meaningful personal growth, well-being, and social engagement, enhancing consumers’ lives beyond just ownership.
Leverage Community and Personalisation: Build communities around shared interests, offering tailored experiences that foster deeper connections between the brand and its audience.
Lesson 4: Explore the Zodiac Economy.
Year of the Snake promotions on RedNote from Bvlgari and Adidas. Source: RedNote
As 2025 marks the Year of the Snake and the first Spring Festival recognised as UNESCO Intangible Cultural Heritage, global brands are launching snake-themed products to engage Chinese consumers. Companies such as Apple, Adidas, Zara, Longines, On Running, and Disneyland have released limited-edition items to align with this significant cultural event, tapping into the so-called "Zodiac economy."
The Growing Influence of the Zodiac Economy
Swiss sportswear brand On Running has embraced this trend by unveiling special-edition snake-themed apparel, footwear, and accessories, including its Cloud X 4 and Cloudtilt shoes. The company also launched a Spring Festival-themed event to strengthen its connection with Chinese consumers by integrating cultural elements into its branding.
Zodiac signs hold deep cultural significance in China, intertwining with superstition, symbolism, and traditions surrounding the lunar year. For those born under the Year of the Snake, wearing red items—such as bracelets or fashion accessories—is believed to bring good fortune, making these products highly sought-after during the festival. Jewellery, apparel, and lifestyle products that incorporate zodiac themes often experience strong demand, reinforcing the effectiveness of such campaigns.
How Brands Are Innovating for Chinese New Year
Leading global brands have elevated their marketing strategies by blending heritage with creativity. Prada introduced a Year of the Snake podcast and short film, while Arc’teryx’s zodiac-themed jackets sold out instantly, commanding resale prices over twice the original value. Luxury jewellery brand Qeelin celebrated China’s Dong minority ethnic group’s 2,500-year-old choral tradition, while Bulgari leveraged its iconic Serpenti motif to craft an engaging campaign.
Despite intensifying competition, brands that authentically integrate zodiac elements into their campaigns continue to thrive. The key challenge lies in avoiding clichés while maintaining originality, cultural sensitivity and authenticity. By achieving this balance, brands can sustain consumer interest and strengthen their positioning in China.
Implications for Foreign Brands in China:
Cultural Integration Is Key: Brands that incorporate zodiac and cultural traditions authentically into their product designs and marketing strategies will enhance their appeal and relevance among Chinese consumers.
Limited Editions Drive Demand: Exclusive and creatively crafted zodiac-themed products, particularly in luxury and fashion sectors, can command strong sales and premium resale values.
Balance Tradition and Storytelling: Brands that blend traditional symbolism with contemporary storytelling and design elements will stand out in a highly competitive market. Good storytelling is the key between vapid tokenism and authentic integration that resonates with consumers.
Lesson 5: Leverage Chinese New Year Travel.
A selection of domestic New Year travel images from RedNote. Source: RedNote
As the world's largest annual human migration unfolds, Chinese travellers are setting new records for both domestic and international trips during the Lunar New Year. With an estimated 9 billion trips expected over the 40-day holiday period, the surge in mobility reflects a strong rebound in travel demand.
International Travel on the Rise
Searches for travel to Japan and South Korea have more than doubled on Trip.com compared to last year’s holiday period, while interest in Southeast Asia has risen by 47%. Popular destinations include Japan, Thailand, Malaysia, Indonesia, Singapore, Vietnam, and South Korea. Factors driving this trend include lower international airfares—down by approximately 12% year-on-year—and reduced hotel prices, with some lesser-known destinations experiencing cost drops of over 40%. Additionally, visa-free policies in Southeast Asia have made travel more accessible, further fuelling demand.
Many travellers took advantage of early-bird discounts during Double 11 to secure affordable travel packages. With domestic travel costs soaring during Spring Festival, Chinese consumers are increasingly opting for international trips as a cost-effective alternative.
Domestic Travel Still Dominates
Despite the rise in outbound tourism, the majority of trips remain within China. The Spring Festival travel rush has kicked off with a record-breaking 510 million train journeys and 90 million air trips. Self-driving road trips account for an estimated 80% of domestic travel, as families and individuals take advantage of China’s expanding highway network.
Millennials aged 26 to 35, in particular, are driving luxury travel trends, prioritising premium experiences over material goods. This group also seeks out niche experiences, such as destination-based coffee explorations, music festivals, and other immersive cultural events, reinforcing the shift toward experience-driven consumption. With many in this cohort also looking to avoid the familiar “why aren’t you married yet?” interrogations, travel has become a welcome and fulfilling change.
Implications for Foreign Brands Targeting Chinese Travellers:
Leverage Early-Bird Deals and Promotions: Engaging consumers during major shopping festivals like Double 11 with travel-related discounts can capture early bookings and build brand loyalty.
Highlight Unique and Premium Experiences: Luxury travellers and experience-driven consumers are drawn to immersive, niche offerings. Foreign brands should craft tailored experiences that cater to these interests.
Leverage the Zodiac Economy: Zodiac symbolism holds a strong influence on consumption habits around Chinese New Year. It can also provide a sense of familiarity for those travelling without family at this time of the year.
