Download our China luxury market report

Luxury car demands: Main consumers and their buying habits

Chinese digital consumers are the main target of the luxury car market in China. By leveraging the huge base of Chinese netizens, car brands often organize campaigns and advertisements to launch their newest car models, offer online sales of cars, and raise consumers’ interest.

Chinese consumer car buying behavior has transformed. 30% of luxury car sales in China come from first-time car buyers. This implies that premium cars are becoming more affordable and accessible to consumers. Chinese consumers usually buy and own high-end vehicles because they symbolize status.

However, the definition of “luxury” is shifting in China, as younger tech-focused consumers put more emphasis on advanced technology than brand heritage. The increase in electric vehicles (EVs) has further transformed purchasing behaviors, with EV sales projected to reach 20 million units by 2025. The luxury car market in China performed well up to 2023 due to rising disposable income and changing lifestyle aspirations. Chinese EV cars are offering a new kind of luxury at a competitive and often lower price than traditional prestige.

Chinese brands in the luxury car market

Most luxury car buyers in China usually gravitate towards European brands that are well-established and known for their reputation. Newer brands lack the credibility and legacy. However, there is a shift towards new technology among consumers that could challenge established brands. There are many automakers in China that are developing their own premium cars and EVs to defy well-established international names.

Several Chinese brands have emerged as leaders in the premium segment, each with its own strategy and models. NIO is often known as the pioneer of China’s EV segment; NIO focuses on high-tech EVs with innovations like battery swapping stations and a unique user-centric approach. BYD is one of the world’s largest EV manufacturers and has created sub-brands for luxury segments. For instance, Yangwang, an ultra-premium sub-brand for high-end luxury vehicles that launched in 2023. Hongqi (meaning red flag in Chinese) is China’s oldest luxury car brand, famous for supplying limousines to government officials. But in recent years, Hongqi pivoted to private buyers and international markets while mixing Chinese heritage with modern luxury. These luxury cars are expected to offer comfort and strong performance, whilst EVs delivering acceleration and speed at a lower price point than Western car brands.

European luxury automakers are struggling in China

Germany’s BMW and Mercedes-Benz have suffered a sales slump in the world’s biggest auto market in 2025, with pressure especially coming from both the economy and Chinese electric vehicle companies. Mercedes fell 7% in 2024, and in Q1 2025, shipments to customers in China decreased 10% to 152,800 vehicles. Deliveries of BMW and Minis had similar declines, with a 17.2% drop to 155,195 cars in Q1 2025. Porsche was hit even harder, with a decline of 28% to 56,887 cars in 2024 compared to 2023. During the first three months of 2025, the company only sold 9,471 cars in China. Due to the tense economic conditions and the Chinese market’s focus on value-oriented sales. These declines are due to China’s weaker macroeconomic environment in recent months, which has limited consumer spending, and a shift in consumer preference for value-driven cars.

Domestic rivals are catching up in terms of design and technology. Despite competition from traditional prestige brands, the latest domestic brands of high-end cars are significantly cheaper. The rise of EVs is the main element disrupting the sales of luxury cars. This is because China has the advantage in this market as it produces its own raw battery materials for EVs, making the cost significantly lower. For example, BYD’s Dolphin sales for USD 15,110 in China. But retails at USD 41,342 in the Netherlands, a 174% premium. Low labor costs in China also allow these brands to offer competitive pricing. This makes it more difficult for Western automakers to catch up.

Chinese EVs are redefining “premium”: The impact on Porsche

China has shifted the definition of a high-end car to one that is electric, smart, and affordable. Many of the new Chinese vehicles resemble Western competition, such as the Xiaomi SU7 that mimics Porsche’s Taycan. Comparing the functions, the SU7 rivals the Taycan in braking and power. It also integrates AI to assist with parking, and it sells for half the price of a Taycan. Just in 2024, Xiaomi sold more than 100,000 models of the SU7. Although Porsche’s sales were up everywhere globally, the decline in China was significant enough to drag down its global deliveries in 2024 by 3%. With China’s development in EVs, features like automated driving and remote control have become standard. This situation pressures European brands to rely on function rather than brand names.

The rise of electric vehicles in China’s luxury car market

Even though the Chinese government included EVs in its five-year economic blueprint in 2001, it wasn’t until 2010 that it started to provide subsidies to grow the industry. At the time, Chinese brands simply couldn’t compete with European, American, and Japanese car makers in quality and prestige. China’s domestic brand BYD is currently leading the global EV market after overtaking US rival Tesla in early 2025. In 2024, it released its Seagull EV, priced a little above USD 10,000 at the Shanghai auto show, and it is now China’s fourth-best-selling EV.

Traditionally, US and European brands were seen as more luxurious and higher quality than domestic auto brands, but Chinese high-end EVs are taking over the market of luxury cars in China. In 2024, China sold 11 million EV units, a 40% increase from the previous year, taking up a large portion of the global 17.1 million EV sales. As of June 2025, 4.4 million EVs had been sold, already representing a 33% increase from 2024. China’s automakers are competing to pack technology and features considered premium into EVs and sell them for as low as USD 20,000, less than half the cost of an average new car in the United States, which would cost around USD 48,000.

The reinvention of China’s luxury car market

• The luxury car market in China is one of the world’s biggest markets and represents a huge part of its economy.
• Chinese digital consumers are the main target of the luxury car sector. Up to 30% of luxury car sales come from first-time car buyers.
• European luxury cars are struggling in China, especially competing against Chinese EV companies. This is due to domestic rivals catching up in terms of design and technology, with significantly lower pricing.
• Chinese high-end EVs are taking over the market. In 2024, the global EV units sold were 17.1 million, and China sold 11 million units, which is the majority of EVs.

This article Western auto makers are struggling in the Chinese luxury car market with recent EV boom is the first one to appear on Daxue Consulting - Market Research and Consulting China.

Inside the semiconductor supply chain: Roles and specialization

Essentially, semiconductors are created through three steps: design, manufacturing, and assembly. We can also divide the companies in the semiconductor industry into four major segments based on their role in the value chain:

1. Design: design integrated circuits (ICs) for a specific purpose.
2. Manufacturing: fabricate the ICs.
3. Assembly/Packaging/Test (APT): assemble the ICs into a chip, which is then integrated into electronic devices by product manufacturers.
4. Semiconductor manufacturing equipment: Manufacture capital goods used to automate functions in other semiconductor segments.

In recent decades, semiconductor companies transitioned from the Integrated Device Manufacturers (IDM) model. It combines design, fabrication, and packaging functions, specializing in one of the four supply chain segments:

• Pure-play design companies (Fabless) –purely focus on creating software and intellectual property.
• Pure-play manufacturing companies (Foundry) –manufacture chips for Fabless.
• OSAT (Outsourced Semiconductor Assembly and Test) companies –specialize in the APT segment of semiconductor manufacturing.
• Equipment manufacturing companies

Tracking progress: China’s semiconductor industry’s rise in 2022

Globally, 1.15 trillion units of semiconductors were distributed in 2021, around 146 units for every person on Earth. When it comes to market share, the US semiconductor industry is at the forefront with a 48% market share in 2022. On the other hand, China’s semiconductor industry is lagging far behind with a 5% market share. As compared to 2022, the Chinese semiconductor industry’s market share shrank by 2%.

Taking a closer look at who the frontrunners are of each segment, we have the US semiconductor industry in the fabless segment, and the Republic of China (Taiwan) in the foundry segment. Meanwhile, Japan, the Netherlands, and the US are sharing the lead in the manufacturing equipment segment.

China’s semiconductor industry: A 55% contributor to APAC and 31% globally

Starting in 2001, the Asia Pacific became the leading region in semiconductor sales due to the shift in electronic equipment production. The market’s remarkable growth is evident, soaring from USD39.8 billion in 2001 to over USD330.9 billion in 2022. China is the largest country market, contributing 55% to the regional APAC market and 31% globally. In 2020, China’s semiconductor industry consumed nearly a quarter, 24%, of the global semiconductor-enabled electronic devices.

Escalating trade controls had taken a toll on China’s semiconductor industry

After the conflict between Russia and Ukraine broke out, the US government spearheaded the banning of advanced technology exports to Russia to impede its economic and military development. The country then extended the export ban to China.

In October 2023, the Biden administration further restricted American companies from selling certain types of semiconductors to China. The reinforcing controls, which banned the export of artificial intelligence (AI) computing chips to China, specifically Nvidia Corp’s and Advanced Micro Devices Inc.’s (AMD) chips, are still in force. These measures aimed to prevent potential military applications in China and close regulatory loopholes. The move has escalated tensions, with Beijing accusing Washington of weaponizing trade and tech issues.

China’s AI industry heavily relies on Nvidia and AMD, making the ban on these companies the initial chokepoint in the semiconductor supply chain. This significant control over crucial links creates potential bottlenecks and disruptions, particularly impacting both China’s AI industry and the semiconductor sector.

Global restrictions tighten: Japan and the Netherlands join

Following the US, Japan implemented restrictions on semiconductor manufacturing equipment exports to China from July 2023, and the Netherlands from September 2023. These measures pose additional hurdles for China in its quest to develop independent chip manufacturing capabilities and attain self-sufficiency.

China’s other chokepoint is TSMC, the largest foundry in the world. Over 90% of highly developed nodes and 50% of global semiconductors are produced by TSMC. The Chinese semiconductor industry relies heavily on TSMC. In the first half of 2022 alone, China imported ICs from Taiwan (China), with a total value of USD 79.4 billion,  accounting for almost 38% of the country’s total such imports during the period. Thus, unlike other sectors, China does not impose sanctions on chip imports from the Formosa Island even amidst the growing tension in the Strait, specifically after the visit of the Speaker of the United States House of Representatives, Nancy Pelosi, in August 2022.

Recent developments in China’s semiconductor industry

China has achieved a significant degree of localization for mature nodes (≥28nm). This was due to the expansion of SMIC and Huahong’s capacity. This had increased China’s global market share of mature-node production from 19% (2015) to 33% (2023). As China focuses on volume and price competition in mature markets, it has resulted in overcapacity. This has led to intense price wars and diminished profitability.

However, for leading-edge nodes (<14nm), China’s capabilities remain limited and lag two to three generations behind global leaders such as TSMC and Samsung. The prevailing challenges lie in yield rates and building effective high-volume capacity in advanced nodes. Moreover, there is a gap in high-end semiconductor engineers, particularly for advanced R&D and IP design. The problem is compounded by a “brain drain,” where top talent is poached by private firms or foreign companies offering higher salaries. To truly compete at the forefront, China would need to make breakthroughs in alternative chip architectures such as chiplet design, RISC-V, and other niche technologies, all while solving its high-end talent shortage.

Global restrictions tighten: Japan and the Netherlands join

Following the US, Japan implemented restrictions on semiconductor manufacturing equipment exports to China from July 2023, and the Netherlands from September 2023. These measures pose additional hurdles for China in its quest to develop independent chip manufacturing capabilities and attain self-sufficiency.

China’s other chokepoint is TSMC, the largest foundry in the world. Over 90% of highly developed nodes and 50% of global semiconductors are produced by TSMC. The Chinese semiconductor industry relies heavily on TSMC. In the first half of 2022 alone, China imported ICs from Taiwan (China), with a total value of USD 79.4 billion,  accounting for almost 38% of the country’s total such imports during the period. Thus, unlike other sectors, China does not impose sanctions on chip imports from the Formosa Island even amidst the growing tension in the Strait, specifically after the visit of the Speaker of the United States House of Representatives, Nancy Pelosi, in August 2022.

Driving self-sufficiency: China’s semiconductor industry journey since 2014

China has prioritized semiconductor development as a key part of its government agenda to grow its in-house IC industry. Since 2014, China has been working towards self-sufficiency in the semiconductor industry, notably through initiatives like “Made in China 2025.” Recent acceleration in this journey can be attributed to the US-China trade war from 2018 and Huawei’s blacklisting.

Moreover, to support these efforts, the Chinese government introduced new income tax exemptions and import duty exemptions for advanced technology nodes. The “Big Fund,” a state investment fund exceeding USD 50 billion for chips, was reinstated. Additionally, a new National Science & Technology Commission was established to coordinate industry efforts.

In July 2025, China introduced a 10% tax credit for foreign investors who reinvest profits domestically. The policy is effective from January 2025 to December 2028. This policy aims to encourage sustained foreign investment in critical sectors, including semiconductors. Furthermore, according to SEMI, a microelectronics industry association, there are 18 new semiconductor fabs that are scheduled to start construction in 2025.  The Americas and Japan lead with four projects each, followed by China and Europe with three each. As such,  China continues to lead in global capacity expansion, with installed wafer fab capacity projected to surpass 42.5 million wafers per quarter (300mm equivalent) in Q1 2025, which is a 7% year-on-year increase.

Chinese semiconductor industry: Challenges and opportunities

• In 2022, the US led with a 48% market share, while China lagged at 7%, though it increased by 2% from 2020, and was a major contributor to the Asia-Pacific market, accounting for 55%.
• Intensified tensions led to trade controls, export bans, and disruptions, impacting China’s AI industry and semiconductor sector.
• Following the US, Japan, and the Netherlands’ restricted semiconductor manufacturing equipment exports to China, this adds challenges to its quest for self-sufficiency.
• The PRC is a net importer of microchips, recording a notable increase in semiconductor equipment imports from the Netherlands, even with the implemented export restrictions.
• Prioritizing development since 2014, China accelerated efforts with initiatives like “Made in China 2025,” tax exemptions, and substantial investments, aiming for self-sufficiency amidst global trade tensions.

This article China’s semiconductor industry: Seeking for self-sufficiency amid global political tensions is the first one to appear on Daxue Consulting - Market Research and Consulting China.

Once a luxury, these “lunchtime procedures” are now seen as part of everyday self-care. The market grew over 15% annually before 2022 and rebounded quickly post-pandemic. In 2021, China’s medical aesthetics market reached RMB 227 billion (US$32 billion), second only to the U.S., and is projected to overtake it by the mid-2020s, drawing comparisons to South Korea, Asia’s long-time cosmetic surgery leader.

Why it’s booming in China

China’s millennials and Gen Z are highly appearance-conscious and willing to invest in looking good. Surveys show almost 50% of young women and 20% of young men are open to medical beauty procedures. For this generation, these treatments are not taboo, but a form of routine self-enhancement. Many begin in their early 20s, viewing it as “essential rather than optional” in their self-care. This trend aligns with the broader “beauty value economy,” where physical attractiveness is seen as an asset in both social and professional life.

Key platforms shaping the ecosystem

SoYoung (新氧) is the first and leading dedicated medical aesthetics platform in China, SoYoung serves as a one-stop hub for cosmetic procedure seekers. Launched in 2013 and publicly listed on NASDAQ since 2019, SoYoung lets users research treatments and clinics, read thousands of “beauty diaries” (detailed user reviews with before/after photos), consult with doctors, and book appointments online. The app even employs AI to recommend procedures based on user selfies.

While not a booking platform, RED (小红书) plays a major role in guiding medical beauty decisions in China. Users share detailed, first-hand accounts of procedures, helping others vet treatments and clinics. Influencers and doctors use the platform to introduce new technologies or warn against scams, while clinics collaborate with popular bloggers to showcase results. The “light medical beauty” hashtag alone has over 270 million views.

Together, content communities (like RED) educate and generate interest; marketplace apps (like SoYoung) facilitate discovery, price comparison, and purchasing; and user review systems create transparency and accountability.

China vs. Korea: the shift in medical aesthetic tourism

South Korea built its dominance through early acceptance of cosmetic surgery, advanced techniques, and the aspirational pull of K-pop and K-drama. At its peak, over 100,000 foreign patients, many from China, visited annually for cosmetic procedures. Clinics tailored packages for Chinese clients, offering translators, airport pickups, and shopping tours.

Today, more Chinese consumers are staying home for treatments. Domestic clinics in Shanghai, Beijing, Shenzhen, Guangzhou, and Chengdu now match Korea’s offerings in skill and technology.

National pride also plays a role. The Guochao (国潮) movement, already transforming fashion and beauty, is now influencing medical aesthetics. Chinese brands like Imeik (爱美客) and Bloomage Biotech (华熙生物) produce high-quality fillers and toxins that compete directly with global brands such as Allergan’s Botox and Restylane.

Skincare brands riding the light medical beauty wave

The light medical beauty boom has not only transformed services, but also catalyzed the growth of related product brands that cater to consumers’ needs before, during, and after these procedures. In China, both domestic and foreign brands are vying to become the go-to choices for the post-treatment skincare and cosmeceuticals that complement light medical aesthetics.

CICABEL (可复美), specializes in recombinant human collagen products designed for post-procedure healing. Its medical-grade masks, gels, and dressings are dermatologist-recommended to reduce redness, repair the skin barrier, and prevent scarring.

Winona (薇诺娜), originally known for sensitive skin formulas, it has repositioned as a “pre-and-post” treatment skincare brand. Backed by Yunnan-Baiyao, it offers dermatologist-developed products suited for Asian skin. It competes with foreign brands like Avène by blending scientific credibility with national pride.

The dark side: Risks, scams, and counterfeits

The industry’s rapid rise has been shadowed by illegal clinics, counterfeit products, and deceptive marketing. Issues include heavily edited before/after images, fake reviews, and unapproved medical injectables. RED has banned dozens of accounts for “虚假种草” (fake endorsements), where influencers promote services they’ve never used.

Faced with these challenges, the Chinese government and industry regulators have stepped up enforcement in recent years. For example, Hangzhou conducted a high-profile 100-day campaign in 2021 targeting unlicensed aesthetic providers. Nationwide, in 2020 the government issued directives to strengthen supervision of the medical beauty industry, focusing on high-risk areas like injectable use and certification of practitioners. Online platforms have been ordered to police content. As noted in news, RED banned 39 medical beauty institutions in one sweep for false marketing and stepped up AI monitoring of content.

What’s next: trends shaping the future

Light medical beauty in China boom shows no signs of abating. In fact, all indicators suggest that the industry will continue to expand and evolve, reshaping consumer attitudes towards beauty and aging in the process. Looking ahead, a few key future trends and implications stand out:

• Subtle transformations: The new aesthetic is a “refined, natural look” over dramatic changes.
• China as the global leader: The medical aesthetics market is projected to exceed RMB 410 billion by 2025, with the light segment reaching RMB 175+ billion in 2024.
• Higher quality standards: Expect stricter clinic accreditation and visible consumer ratings.
• Tech-driven personalization: AI skin analysis, biotech-based injectables, and regenerative treatments will make procedures increasingly customized.

This article Light medical beauty in China: A new era of aesthetics is the first one to appear on Daxue Consulting - Market Research and Consulting China.

Download our report on the She Economy in China

The adorable imagery and designs often create a relaxing and enjoyable consumer experience, allowing customers to find peace in their busy and stressful lives. Compared to the West, cute and cartoonish designs are only seen associated with children. Western consumers are less likely to see these products as emotional support. Factors such as nostalgia and growing demand for emotional comfort amid rising societal pressure are also the root of virality for the Meng culture in China. This then influences other elements that draw certain consumers, which are social media posts, collectible culture, and community. Cute culture has been widely adopted across multiple industries, such as food, clothing, toys, and electronics.

Why Chinese audience adore cute characters

“Meng” has a broad definition for cute in Chinese. In Asia, “Meng” is a very important feature, and there are many animals that are considered “Meng” by default, such as cats, dogs, and rabbits. Since cute characters can increase consumer engagement and affinity with the brand, many companies have chosen adorable cartoon animals as their mascots.

Bestselling local IPs – Shanghai Disneyland’s Linabell and Pop Mart

One successful brand mascot in China is Linabell, a little fox doll officially launched and put on sale by Shanghai Disneyland on September 29, 2021, along with the Duffy & Friends Christmas series. On December 29, at 3 a.m., there were about 5,800 people queuing up outside Shanghai Disneyland to have the chance to get hold of Linabell merchandise. Since then, Linabell has become a popular icon due to its cute, enthusiastic, and heartwarming image, which helped Chinese young people through their toughest days during lockdowns.

The consumption of cute cartoon mascots has been described as “emotional consumption” in Chinese media outlets, as consumers seek more affordable luxuries in the current economy. Linabell is Disney’s most popular character in China, attracting as many fans as Mickey Mouse and Disney’s princesses.

Another brand that is benefitting immensely from Meng culture is Pop Mart, a collectible toy store. Labubu is designed by Netherlands-based artist Kasing Lung, and it is Pop Mart’s bestselling IP globally. In 2024, The Monsters IP, which includes Labubu, generated RMB 3 billion (USD 414 million) in revenue, a year-on-year growth of 726.6%. These toys come in blind boxes, and exactly which toy a consumer will receive remains a mystery. This format creates online communities, such as unboxing videos, as creators and viewers share the excitement of discovering what they find. This element of surprise and collecting these figures introduces magic and joy into daily lives and allows communities to share, trade, and display them with others.

Bestselling foreign IP – Jellycat

Since entering the Chinese market in 2013, Jellycat has been mainly marketed as a baby brand. Sales growth was slow in the early years, even after launching its Tmall International Flagship Store in 2015. After recognizing this, in 2018, the brand repositioned its products and shifted its target audience toward women aged 25 and older. This pivot and extremely successful, as consumers began to embrace the Jellycat stuffed animals. Nowadays, they are not just for children but as personal “emotional companions.” The brand’s popularity surged online as Chinese consumers view its products as a source of comfort in a stressful society where mental health awareness is growing. The hashtag #Jellycat新品 (Jellycat’s new products) on Xiaohongshu has over 347.6 million views and over 2.6 million notes as of August 2025.

Luxury brands tapping into the Meng culture in China

The luxury industry has been expanding into the Chinese millennial and Gen Z market over the past few years, and Meng culture has been a key driver of success in China’s retail world. Despite the growing collaboration between luxury brands and cute characters, it’s obvious that these collections are only targeting Chinese consumers. In the West, cute and cartoonish designs are only meant for children and not adults who purchase luxury products. Meng culture in China usually appears harmless and pretty. This went against the typical ideal portrayed in Western luxury, which promotes maturity, elegance, and seduction.

One brand that is able to incorporate craftsmanship along with cute elements in its products is Loewe. Instead of following traditional luxury fashion brands that tend to cater to consumers who value exclusivity and timelessness, Loewe markets to individuals who buy pieces reflecting their own style and status. In 2023, Loewe collaborated with Studio Ghibli on many popular movies. IPs such as “Howl’s Moving Castle”, “Spirited Away”, and “My Neighbor Totoro” are applied to their iconic bags. This collection of products allowed the brand to tap into a new market segment. For instance, younger consumers who are interested in luxury fashion or anime lovers.

How brands are bringing the Meng economy online

In order to attract tech-savvy young Chinese consumers, many companies have expanded online and tapped into the “Meng” economy, with both domestic and foreign brands entering the metaverse since 2020, also integrating offline AR experiences that connect with digital engagement.

AR interactive technology in offline stores

Augmented Reality (AR) is a technology enabling users to overlay computer-generated information onto what they are watching in the real world, sometimes involving different sensory perceptions.

Several B2C brands are beginning to install AR technologies to provide customers with a more immersive and interactive experience. AR allows consumers to have a multi-sensory experience of the brand, thus increasing a stronger emotional connection between the brand and the consumer. The fields of application of the AR technology go beyond virtual fitting and make-up trials. Burberry has also made some new attempts in shopping malls in some of China’s most important cities. This is an effort to bring a different experience to Chinese consumers who have re-entered the boutique after the pandemic. For example, in June 2020, the brand opened a pop-up store with the theme “Burberry Animal Kingdom” in Shanghai International Trade IAPM Mall, IFC Mall of IFC Center, Nanjing Deji Square, and Shenyang MixC City. Visitors could use AR technology to interact with animals through their mobile phones.

Future of the Meng culture: Challenges and potential

Although Meng culture has experienced success in the Chinese market, challenges like market saturation, competition, and consumer preferences are all important to consider. As more brands are joining the cute economy, it could lead to consumers’ aesthetic fatigue. This may lead to a decline in the appeal of cute mascots and figurines. Brands will have to put more time and effort into marketing, innovation, and design as there are struggles with brand differentiation. The future of Meng culture is uncertain, as it depends on social and cultural developments, advances in consumer technology and trends.

How brands are tapping into the Meng culture

• Meng (cute) culture is not just targeted towards children but also young adults for nostalgic purposes.
• The rise of Meng culture in China is linked to a shift in social psychology. This was due to young people facing pressure in their everyday lives and constantly looking for relief and comfort.
• Brands like Pop Mart and Jellycat’s main consumer base are young adults and millennials as their products offer emotional support.
• Luxury brands have started to incorporate Meng into their products, such as Loewe’s collaboration with Studio Ghibli movies.
• New online channels give new ways for brands to integrate the “Meng economy” into their digital marketing and communication strategy.

This article Meng culture in China: Brands utilize cute economy to capture Chinese consumers is the first one to appear on Daxue Consulting - Market Research and Consulting China.

Consumers between 31 and 40 years old account for the largest group of car buyers in China

Despite the huge number of vehicles produced, the number of Chinese drivers is even bigger. In 2024, China had over 506 million drivers, and over the past two decades, China had an average of 21 million new motor vehicle drivers registered annually.

Since 2011, obtaining a car has become more difficult in China, in part due to the implementation of the car plate lottery. Most big cities have implemented this initiative to reduce the number of cars on the streets, releasing a limited number of license plates per year. Those aged 21 to 30 accounted for 27% of car buyers in China in 2022, up from 16% in 2017. This is due to a shift in priority towards technology and a growing interest in environmentally friendly transportation. However, car buyers from 31 to 40 years old still constitute the largest group, totaling 40% in 2022. Another change in the demographics of car buyers is the increase in female consumers since 2018.

Carmakers are targeting younger buyers with sleek onboard features, lower monthly installments, and tech innovations like voice command. For example, the average age of Mercedes-Benz car owners in China is less than 36 years old, which is 10-15 years younger than its customers based in Europe and the United States.

Chinese car brands ascend: top players and government policies 

Chinese carmakers held 65% of the domestic market in 2024, and 5.9 million vehicles were exported, including one million battery-electric cars. The largest car exporters from China in 2024 were Chery and Shanghai Automotive Industry Corporation (SAIC), with 1.1 million and 929 thousand exports each. Despite this, BYD was the leading brand in revenue, generating a total of RMB 777.1 billion (USD 107.3 billion) just in China. It surpassed Tesla in annual sales of electric vehicles.

Over the past two decades, China has emerged as a dominant global automotive power through industry policies and subsidies that have accelerated EV adoption. To counteract the urban air pollution and dependence on oil imports, the Chinese government has imposed policies to encourage the purchase of EVs. Since buying an EV costs more than a conventional combustion engine (ICE) vehicle, in 2009, the government began to provide subsidies for EV purchases. The reason for EV prices being higher is due to the high cost of the batteries, and with this mandate, there has been an increase in the manufacture of EVs and batteries for them, driving down the cost of both globally. EVs already account for 51% of new passenger cars sold in China since July 2024.

Western players in China struggle to keep up with Chinese automakers

Since 2022, China has permitted full foreign ownership of automakers. Previously, foreign automakers were only allowed to own up to 50% of a vehicle manufacturer, forcing them to create joint ventures with local partners, such as SAIC Volkswagen.

Chinese car manufacturers are able to embrace new technological paradigms in different ways. For instance, vertically integrating their supply base, responding quickly to market demands, and forging government partnerships. For example, companies like BYD manufacture their own batteries and components, lowering production costs and speeding up time to market. Chinese EV firms are also actively innovating new products, shortening development cycles by 30% compared to Western automotive companies. China’s central and local governments are also actively supporting EV expansion through five-year plans, subsidies, and infrastructure investments, ultimately reducing the barriers to EV adoption.

The Chinese secondhand car market shows stabilization after years of decrease

China’s automotive market sales for lightly used secondhand cars totaled 1.3 million as of April 2025. In 2024, sales of secondhand vehicles reached a record high of 15.7 million units, which is a 6.1% increase compared to 2023. However, despite the growth in annual sales, the market faced significant challenges in early 2023 when Tesla slashed its prices in China, triggering a wave of price cuts across the entire automotive market. This shift drew customers away from used cars towards newly discounted cars instead due to pricing changes.

Another factor contributing to the decline of used car sales is the increase in market transparency. Historically, secondhand car dealers profited from information asymmetry, and dealers were able to exaggerate the scarcity of cars to justify high prices. However, with the rise of the internet, consumers can easily compare prices across platforms, which leads to more intense market competition among used car dealers. To cope with this change, many used car dealers are turning to online channels as a way to attract customers. Dealers have found that online sales can account for up to 70-90% of their total transactions, and as online traffic becomes more concentrated, traditional methods are becoming less effective. These changes mean that dealers must continue innovating to sustain growth in the face of heightened competition and shifting consumer preferences.

China’s automotive market: a flourishing market full of opportunities and innovation

• China has remained the world’s largest automotive manufacturing country and automotive market since 2009.
• Despite the high number of vehicles produced, obtaining a car in China can be difficult due to factors like high registration fees and the car plate lottery.
• Chinese consumers tend to be older, with those aged 31-40 accounting for the largest share of drivers, although the number of younger car owners is rising.
• Chinese carmakers like SAIC and BYD are gaining ground on established Western car companies, with BYD being the undisputed leader in the Chinese EV market.
• China’s secondhand cars totaled 1.3 million as of April 2025, reaching a record high despite the decline in previous years.

This article Uncovering China’s booming automotive market is the first one to appear on Daxue Consulting - Market Research and Consulting China.

Download our China luxury market report

How China has emerged as a key market for second-hand luxury products

This trend is particularly pronounced in China, where the second-hand and grey market for luxury items is expanding. As luxury prices rise amid economic uncertainty, shoppers seek cheaper alternatives. For a long time, Chinese consumers were reluctant to buy used luxury products. Buying pre-owned items used to feel shameful to many people. In a culture that values “face” and social status, buying used goods was once seen as shameful.

Nowadays, Chinese consumers are increasingly embracing the purchase of second-hand luxury goods as a way to access premium products at more affordable prices. Factors such as environmental concerns, desire for unique products, and changing attitudes towards luxury consumption have also contributed to the rise of this segment. Millennials (29-41) dominate pre-owned luxury purchases, while Gen Z buyers are drawn to unique and limited-edition designs. Within this, female Gen Z buyers are the biggest demographic of second-hand shoppers, accounting for 65% of all sales in China.

Social media users and advocates argue that buying second-hand luxury is a sign of good taste. They argue that it allows one to find rare products with original designs that were discontinued years ago. However, often have better craftsmanship and quality than modern goods, because nowadays, luxury houses focus more on profit. For example, Chanel ceased using 24-karat gold plating post-2008 to cut costs. The resale market allows fashion enthusiasts to find and purchase these rare, high-quality vintage bags.

Rise of second-hand online platforms

Platforms such as ZZER and Dewu have revolutionized reselling, taking a commission on each sale. ZZER’s Shanghai store alone processes 5,000 daily listings, highlighting the sheer volume of luxury goods changing hands. On ZZER’s platforms, a Louis Vuitton bag was on sale for RMB 4,762 compared to its original price of RMB 14,300. Consumers who buy second-hand are either looking for deals or searching for high-end products that can preserve their value or even appreciate, as a form of investment. These second-hand platforms have also attracted many international customers who are on the hunt for bargains. Dewu’s luxury products are often sourced overseas and are sold at discounts of 20% to over 50% compared to the original price. Dewu’s Q2 2024 sales across 48 brands grew 19% YoY, exceeding RMB 7 billion.

Source: Xiaohongshu @676840712, ZZER’s physical store in Shanghai

What pushes consumers to buy second-hand in China

Second-hand consumption has also become extremely trendy among young shoppers, and buying pre-loved goods has become mainstream in China. Rising prices of luxury brands are one of the main reasons consumers are turning to the secondary market, along with high taxes on imported luxury goods. Strict regulations on import duties and consumption taxes also make luxury goods prohibitively expensive for many Chinese consumers. This also includes the government-imposed stricter border controls, which eliminate the possibilities of Daigou. The estimated price difference between Europe and China for new luxury items is 30% on average. For example, a Louis Vuitton Speedy 25 handbag in Europe would cost EUR 1,550 against RMB 17,600 (around EUR 2,260) in China, which is 31.4% more expensive. As a result, savvy shoppers who cannot go overseas to buy brand-new bags turn to the second-hand market to access luxury goods at more affordable prices.

Social media is a catalyst for second-hand success in China

With live streams and social media posts shared by young consumers, it has become easier for people to discover different styles and make purchases. In a country where 1.02 billion people use social media, platforms like Xiaohongshu and Douyin have become essential to the second-hand market in China.

Many stores decide to operate online, hosting livestreams on Douyin where they present their pre-loved handbag stock and showcase the price difference with brand-new products from the store. UIBE reported that for luxury product purchases, 53% of consumers purchase from domestic brick and mortar stores, while 42% of total transactions were made online, and 5% of consumers conducted the shopping overseas.

Luxury-focused influencers like Mr. Bags (包先生), 858.2k followers on Xiaohongshu, and Sun Shaqi (小小莎老师), 889.3k followers on Xiaohongshu, also help draw attention to second-hand products. Recently, in one of her livestreams, Sun Shaqi highlighted that “For the price of one single new bag, you can buy three or four pre-loved. It’s a good deal, isn’t it?”

Beyond influencer marketing, social media algorithms and hashtag culture have also directly impacted sales, with the hashtag #二手奢侈品 (second-hand luxury goods) on Xiahongshu accumulating over 4 million posts and 2.2 billion views as of August 2025. However, the sale of pre-loved luxury items still makes up less than 5% of China’s total luxury market. This is much lower than the markets in the US and Japan, where second-hand markets make up for 31% and 28% of luxury consumption. This gap can be attributed to the earlier maturation of these markets and the long-standing affluence of their populations. Chinese consumers began acquiring luxury goods in large numbers as early as the 1970s. This creates a larger pool of pre-owned items available for resale.

Consumers’ trust and concerns

In a country where counterfeit goods, unmet delivery promises, and poor after-sales services contribute to users’ mistrust of resale apps, the focus on authenticity cannot be overlooked. Although mainstream platforms offer professional authentication services, many consumers still report encountering counterfeits and goods that don’t match the description. According to the China Consumers Association, 42% of complaints received about second-hand luxury products in 2024 involved product authenticity issues.

Thus, some companies are trying to fight against the general idea that second-hand luxury items are synonymous with “scams”. For example, Dewu has a unique “authenticate first, ship later” process, providing official certificates, anti-counterfeiting sets, and unique digital IDs for verified products.

Another issue is the inconsistent pricing system, where prices for the same product vary significantly across different platforms, sometimes by more than 30%. This lacks transparency and creates confusion for consumers. China currently has very few specific laws and regulations for second-hand luxury goods transactions. Most of the stakeholders rely on general laws such as the Consumer Rights Protection Law and the E-Commerce Law, which struggle to address specific areas of the industry. These laws cover product authenticity and return rights. However, it lacks protocols for verification and condition grading, which are the key challenges for second-hand products.

Growth opportunities and challenges

Despite the challenges, the industry is actively trying to self-regulate and innovate.  Leading second-hand luxury goods platforms have jointly issued the “Self-Discipline Convention for China’s Second-hand Luxury Goods Trading Platforms”, with unified authentication standards and price reference systems. One of the brands in this, called Zhishe, launched a blockchain-based luxury goods digital passport project, aiming to cover 80% of its products by the end of 2025. By setting industry-wide authentication and pricing standards, these initiatives are rebuilding consumer trust with transparency.

Chinese second-hand luxury market cheat sheet

• China’s second-hand luxury market emerges as a shift in consumer habits is happening, with China’s market expected to grow to USD 30 billion by 2025.
• Second-hand platforms have emerged as an easy way for consumers to buy and sell, with these online retailers expanding into physical stores.
• High taxes on new luxury goods in China, making them 30% more expensive than in Europe, drive consumers towards the second-hand market.
• With over 1 billion users on Chinese social media and two-thirds buying through livestreams, platforms like Douyin and influencers with millions of followers are propelling the second-hand luxury market.
• Challenges such as the lack of trust towards whether platforms are offering authentic products with quality after-sales services are raising concerns among the most skeptical customers.

The second-hand luxury market in China is experiencing significant growth, driven by sustainability trends, changing consumer attitudes, and economic factors. Daxue Consulting offers targeted consumer insights into this burgeoning market, helping businesses understand the unique motivations and behaviors of Chinese consumers in the luxury resale space. Our market research in China equips companies with the knowledge to adapt their strategies to meet evolving demands and capitalize on emerging opportunities. By leveraging our consulting services, you can gain a competitive edge in this dynamic market. Reach out to us to explore how we can assist your business in navigating the complexities of China’s second-hand luxury market.

This article Second-hand luxury market in China: Once a social taboo, now a badge of smart consumption is the first one to appear on Daxue Consulting - Market Research and Consulting China.

Download our China F&B White Paper

Despite this surge, China still accounted for only ~6% of global coconut water sales in 2023, whereas North America held roughly 25%.  This segment is projected to maintain double-digit growth to continue through 2027. This positions China as a key driver in the global coconut water market and the largest Asia-Pacific market by 2030.

Health and wellness drive the popularity of coconut water in China

Chinese consumers are prioritizing natural and low-sugar beverages, which propel coconut water’s adoption. The broader beverage market reflects this shift – health-awareness is reshaping preferences and boosting nutritious drinks over sugary sodas. Coconut water hits the sweet spot: it is fat-free, low in calories, and perceived as “pure and natural”, aligning perfectly with modern health trends. Coconut water offers multiple benefits (natural electrolytes, hydration) without high sugar content, making it a popular alternative to soda and sports drinks.

Social media hype and consumer evangelism

Chinese social platforms have played a big role in coconut water’s rise. On lifestyle app Xiaohongshu (also known as RedNote), the hashtag “#椰子水” (#coconutwater) has amassed over 750 million views, with hundreds of new posts each month. Users share creative ways to enjoy coconut water:

• Fitness enthusiasts post daily workout hydration using coconut water
• Moms tout it as a natural electrolyte during pregnancy
• Urban professionals mix it with tea, coffee, or fruit for trendy concoctions

This has normalized coconut water as a daily beverage for many urbanites. According to the CBN Data report, urban white-collar workers account for 45% of consumption, with usage also strong among sports enthusiasts (32%) and young mothers (18%).

Product innovations and “Everything is Better with Coconut!”

The surging demand has spurred a wave of innovation in China’s beverage scene. In 2021, Luckin Coffee kicked off the craze with its hit coconut milk latte, selling over a hundred million cups and inspiring the slogan “万物皆可椰” (“everything is better with coconut”). Originally, coconut flavor in drinks was often from coconut milk, but soon coconut water itself took center stage. By 2023, major tea chains like HeyTea, Naixue, and Cha Panda launched new drinks using 100% coconut water as the base instead of tea.

For example, HeyTea introduced cocktails of green tea, fresh fruit, and chilled coconut water topped with pistachio cream. Meanwhile, coffee chains like Manner rolled out coconut-water jasmine matcha drinks, all capitalizing on coconut water’s light, tropical taste. The vibrant product development shows how brands are leveraging coconut water’s versatility. It blends well with coffee (to soften bitterness), with tea, or as a mixer in fruit smoothies. This versatility, high “natural” appeal, and photogenic presentation have cemented coconut water as a drink for Chinese consumers’ hydration.

Supply-side challenges affecting the coconut water market in China

Over 90% is imported from Southeast Asia, with Thailand, Indonesia, and Vietnam as the top suppliers. Domestic production (mainly Hainan province) accounts for only around 10% of the supply. Despite the heady growth, China’s coconut water industry faces significant supply-side challenges. The country simply cannot grow enough coconuts to meet demand. Thailand has historically been a key supplier, known for its aromatic young coconuts (and home to the leading brand IF). Vietnam, newly authorized in 2024 to officially export fresh coconuts to China, is rapidly scaling up and competing on price.

The heavy import reliance creates vulnerabilities. A drought or typhoon in Southeast Asia can tighten supply and spike prices overnight. Import costs are also exposed to tariff changes and geopolitical shifts. For instance, tariffs on coconut products can be steep, reported up to ~30-40% for some countries. This squeezes the margin for importers. The supply imbalance is also an opportunity: foreign coconut producers (from Thailand’s farmers to Vietnam.

Riding the health & wellness wave

On the opportunity side, China’s coconut water boom is part of a broader healthy beverage trend that shows no sign of abating. Chinese consumers today are more willing than ever to spend on health and well-being. The shift toward natural drinks is visible across categories. For example, sales of pure fruit juices and sugar-free drinks are growing in double digits while sugary beverages stagnate. Coconut water benefits from this halo effect as a naturally healthy choice. Moreover, coconut water’s expansion into everyday scenarios (offices, gyms, cafés, etc.) has made it more resilient. Even amid an overall economic slowdown and lower consumer spending in 2023-2024, premium beverage segments like coconut water continued to grow, buoyed by affluent urbanites and lifestyle-conscious youth.

What you need to know about coconut water in China

• China’s coconut water market grew nearly tenfold between 2019 and 2024. It is projected to surpass North America by 2027, fueled by health trends and lifestyle shifts.
• Platforms like Xiaohongshu have normalized coconut water consumption. Particularly among Gen-Z, fitness enthusiasts, and young professionals, making it a daily staple.
• Thai-founded IF Coconut Water leads with a 34% market share by blending authenticity, savvy branding, and successful local partnerships, such as with Luckin Coffee.
• Brands are leveraging coconut water’s versatility in drinks, offering creative blends across coffee, tea, and fruit formats. This contributes to high consumer engagement and repeat purchases.
• With over 90% of coconut water imported from Southeast Asia, China’s market is vulnerable to supply shocks, opening doors for local processing and overseas investment.

This article Coconut water in China: Soaring popularity in China’s wellness economy is the first one to appear on Daxue Consulting - Market Research and Consulting China.

Xuanxue as emotional support

Xuanxue, as an invisible mystical power, is now attracting huge attention from young people. It may be difficult to verify its evidence, but there must be reasons for the popularity of this trend. In contemporary society, young people face an increasing number of uncertain factors, adding to the pressure of academic pursuits and the search for emotional grounding. Xuanxue, as an invisible mystical power, is now attracting huge attention from young people. It may be difficult to verify its evidence, but there must be reasons for the popularity of this trend.

As such, Xuanxue offers them a rationale to alleviate internal conflicts. Certain frustrations are attributed to phenomena like “Mercury Retrograde”(水逆) and “feng shui,” providing explanations for otherwise indigestible anxieties. Utilizing the Barnum effect makes it possible to recognize that people are inclined to believe in generalized statements. In times of helplessness and confusion, individuals seek solace through fortune-telling and similar practices. The broad and ambiguous advice provided by metaphysics allows them to instinctively filter out information that does not resonate with their experiences, offering a semblance of guidance amidst uncertainty.

Social media drives the buzz

Social media has propelled the spiritual economy. A plethora of successful instances of wishful thinking online has drawn in more individuals seeking to alter their fortunes through Xuanxue practices. Furthermore, the growth of the associated economy has captured the attention of a broader audience. The surge in temple economies has infused traditional and solemn temples with a youthful and vibrant atmosphere. Various ancillary sales and temple cafes have emerged, bridging the gap between young people and these sacred spaces. Additionally, while not everyone may be deeply engaged in the spiritual economy, many are still enticed by the allure of jewelry and ornaments associated with it, leading them to purchase related items.

How young Chinese are turning to spiritual solutions

As the spiritual economy in China gains traction, related businesses are naturally experiencing a surge in popularity. In a survey published by the Chinese Academy of Social Sciences in 2025, 68% of people aged 18 to 35 believed in at least one Xuanxue principle.

Temples: young people’s luck haven

The temple, once primarily frequented by middle-aged and elderly individuals, now sees an influx of young people praying for good fortune. The temple market is growing at a rapid pace, reaching RMB 90 billion (USD 12.4 billion) in 2023 and projected to exceed RMB 100 billion (USD 13.96 billion) by 2025. This growth is due to people’s demand for spiritual comfort and emotional support; consumers are willing to pay for the cultural products for their emotional value. Beyond the traditional revenue resources temples gather like entrance fees, the economy has new products to offer to the younger demographic such as magnets, canvas bags, prayer bracelets and protective amulets. These products often become trendy on social media which draws more people to visit temples. One of the most famous religious temples in China is Mount Emei, bringing in RMB 820 million (USD 114.3 million) annually.

Digital spirituality and the rise of Cyber Xuanxue

Cyber Xuanxue (赛博玄学) has long been a favored avenue for young people when it comes to accessibility of spiritual practices. For students and office workers alike, it presents the most efficient use of time and finances. Good-luck memes and profile picture alterations have gained traction among the youth, who believe such changes can attract love and prosperity effortlessly, and this has become one of the methods of Zhuanyun 转运 (change of luck). With the rise of artificial intelligence, more people are turning to chatbots for personalized spiritual guidance over hiring an actual person.

In the contemporary era, Cyber Xuanxue stands as the dominant force. Astrology and tarot transcend mere superstition, akin to the ubiquitous incense and bracelets found in temples, addressing the emotional needs of today’s youth. The rise of this wave has also led to the popularity of many astrological and tarot bloggers, who provide daily horoscope predictions and recommend lucky items according to the horoscope and have gained extremely high attention on social media.

The two most famous social media platforms for finding online divinations are Xiaohongshu and Bilibili. PR actioners and self-proclaimed “healers” upload divination videos. For example, on Bilibili there is an event called dazhong zhanbu (大众占卜）which translates to mass divination; this content usually involves tarot reading and other divination cards. The mass divination sessions usually follow a routine of a psychic asking the audience to choose a card from several options, and interpreting the card drawn anywhere from yes or no questions to in depth analysis of a specific question.

The rise of AI fourtune telling

According to the “2024-2025 China AI Metaphysics Market Development Research Report” released by iiMedia Research, the AI powered divination and spirituality market has surpassed RMB 12 billion (USD 1.67 billion), with an annual growth rate of 43.7% and more than 70% of users in this market are aged 18-30. The rise of Cyber Xuanxue is due to the demand of fortune customization at a low cost. For example, DeepSeek draws on an extensive database combined with modern models such as MBTI to generate an answer that covers dimension such as career, emotion and health.

What you need to know about the Chinese spiritual economy

• The spiritual economy in China has surged in popularity across the Internet, captivating a substantial audience of young individuals seeking comfort in an uncertain time.
• Social media have propelled the spiritual economy forward, bringing in the attention of a broader audience.
• Temples are experiencing a shift in demographics as they attract not only the middle-aged and elderly but also the younger consumers, who now purchase a variety of bracelets to seek blessings for good fortune.
• The accessibility and affordability of Cyber Xuanxue/using AI for fortune telling have attracted a significant following among young people, leading to thriving communities and benefiting relevant bloggers.
• Xuanxue serves as a psychological haven for young individuals, helping them alleviate internal psychological friction and find answers to their questions.

This article The spiritual economy in China: psychological comfort for young people is the first one to appear on Daxue Consulting - Market Research and Consulting China.

Download our China F&B White Paper

China’s yogurt market produces the most revenue worldwide

Revenue in China’s yogurt market has reached RMB 199.8 billion (USD 27.44 billion) as of July 2025. The market is expected to grow annually by 6.98% (CAGR 2025-2030). Globally, China has generated the most yogurt market revenue and stands as an industry leader in 2025. Meanwhile, the second global yogurt market, which is Europe, is growing at a 5.30% CAGR from 2025-2033. According to the National Food Safety Standard for Fermented Milk, yogurt is divided into four categories: sour milk, flavored sour milk, fermented milk, and flavored fermented milk. Only products made with raw cow’s/sheep’s milk or milk powder are considered yogurt products.

Within the Chinese yogurt market, there are two distinct varieties to consider, according to their storage temperatures. Low-temperature yogurt, favored for its superior taste and nutrition. However, it comes with a shorter shelf life and demands specialized logistics, including cold chain technology for transportation to the retail destination.

In contrast, room-temperature yogurt boasts a longer shelf life but is often perceived as nutritionally inferior. Historically, room-temperature yogurt prevailed due to limited refrigeration in retail channels. However, with rapid economic development, cold yogurt has gained popularity, valued by consumers for its taste and nutritional benefits.

Low- and room-temperature yogurts: different growth prospects

Room-temperature yogurt largely dominates the market, boasting nearly double the transaction volume of its low-temperature counterpart in 2021. Nevertheless, while the former experienced a growth rate of 6.1% from 2016 to 2021, this growth is anticipated to slow down to 3.6% between 2021 and 2026. From a traditional Chinese dietary perspective, low-temperature yogurt is not considered suitable for the two core dairy consumer groups, which are children and the elderly. According to traditional Chinese medicine, yogurt is a cold food that’s believed to harm the spleen and stomach, as children and the elderly are seen as having a weaker digestive system. Despite this, low-temperature yogurt has exhibited a remarkable growth rate of 14.3% and is projected to maintain a steady growth of 11.4% in the forecasted period from 2021 to 2026, thus narrowing the gap between the two varieties.

Health consciousness becomes the primary concern and driver of the market

As Chinese people increasingly prioritize healthy lifestyles, they prefer low-fat, additive-free options with little to no sugar and with high protein content. Yogurts are seen as nutritious drinks that provide probiotics and vitamins. The government is also actively encouraging the consumption of milk and yogurt, as evidenced in their “Healthy China Initiative (2019–2030)”, a guideline whose purpose is to prevent diseases and promote a healthy lifestyle for all citizens.

The habit of eating yogurt has been partially influenced by the West, as people post photos of their yogurt bowls online on platforms like Xiaohongshu. The main health benefits of yogurt are that it contains probiotics, which strengthen the immune system and make it a health ally against stomach problems. The aesthetics of the yogurt bowl contribute to the product’s popularity, as the hashtag #酸奶碗 (#Yogurtbowl) has gained more than 1.7 billion views and 5.1 million likes as of July 2025.

Chinese yogurt brands dominate the market

Domestic brands dominate the yogurt market in China as they are able to tailor products to local tastes and dietary habits, such as offering flavors like red date, grain blends, and aloe vera. According to the ranking site, Paizi Wang (牌子网), the best-ranking brands in the market for quality and price are: Yili’s Ambrosial (安慕希), specializing in Greek yogurt,  Junlebao (君乐宝), Yili (伊利), Mengniu’s Chunzhen (纯甄), and Guangming’s Moslian (莫斯利安).

The only foreign brand that made it to the top 10 is the Japanese brand Yakult (养乐多), ranking at 8^th place. Foreign brands are rare in the yogurt market as there are many challenges and barriers to entry, such as compliance costs, sourcing raw milk, and investment. It’s harder for foreign brands to scale in China due to slower localization, difficulty gaining consumer trust, and unfamiliarity with local Chinese demand and taste. Domestic companies are more aligned with government regulations, have strong networks with distribution centers, and are often innovating new yogurt products that resonate with domestic consumers’ health standards.

How yogurt is consumed in China

For Chinese consumers, yogurt has evolved into a product that can be sold in different formats. For instance, milk tea, bottled, or bowls that allow the consumer to eat on the go. Among the main occasions of yogurt consumption, 19% is consumed during breakfast, 16% is at home, usually after dinner, and 9% is in the office or school as a snack. Companies are taking advantage of this and developing new consumption scenarios for yogurts.

Simple Love: the brand that revitalized the low-temperature yogurt segment

Simple Love (简爱) is a high-end brand established in June 2016 under the Pucheng Diary Group (朴诚乳业). It is renowned for its zero-additive low-temperature yogurts. The company boasts a high commitment to R&D; in fact, it uses machines imported from France, Italy, and Denmark.

Within 5 years, the brand grew by over 160%, ranking among the top brands in the sector. The founder, Xia Haitong, stated that between 2018 and 2020, Simple Love’s sales surged sixfold. It grew from RMB 300 million to an impressive RMB 2 billion. After which, the annual sales surpassed RMB 3 billion. Its unexpected popularity can be attributed to the fact that prior to them, the low-temperature yogurt market had been more or less overseen. Simple Love brought new life to the segment with its best-selling products “父爱配方” (The Love of a Father Formula) and “身体知道” (The Body Knows).

Instead of the usual offline retail channels, Simple Love uses new retail channels that integrate online and offline platforms. It can be found in Hema, Wal-Mart, Lawson, FamilyMart, 7-Eleven, as well as on e-commerce platforms, specifically JD, Tmall, and WeChat.

From room-to-low-temperature and now freshly made yogurt

While low-temperature yogurt started challenging the room-temperature counterpart’s predominance in the market, another competitor emerged. Freshly made yogurt started gaining popularity around 2020, when the trend of freshly brewed milk tea drinks subsided, and people started looking for something more refreshing and nutritious. It is then that already-existing offline stores gained momentum and won a name for themselves.

Blueglass, “the Hermès of yogurt”

Founded in 2012, Blueglass is an offline high-end yogurt store, specializing in low-temperature freshly made yogurts. It is particularly renowned for its collagen yogurt formula, which is said to help beautify the skin. To ensure the quality of its offerings, the brand meticulously manages its entire production process, from sourcing milk through its 10,000 Holstein cows to importing fresh, high-quality ingredients from overseas. Blueglass adheres to the brand concept of “craftsmanship, responsibility, sharing, and change”. With the high unit price (around RMB 40) and the commitment to producing excellence, it has earned the title of “the Hermès of yogurt”. It has also become trendy online as consumers review the many benefits and flavors offered by the brands.

More Yogurt is in rapid expansion

More Yogurt (茉酸奶) was first established in Shanghai in 2014. Ever since, it has opened more than 1,000 shops nationwide, mainly selling products following the formula “yogurt + fresh fruit + nut toppings”. It is located in the mid-to-high-end, with the price range varying between RMB 20 to 35.

The brand recently started a process of store expansion. The number of stores has already tripled within half a year. More Yogurt already has more than 1,600 offline stores throughout China as of 2023 and plans on continuing expansion.

Oarmilk’s expansion in the chilled yogurt market  

Oarmilk is a Beijing-based brand that has stood out in grocery stores for its high protein positioning. It targets middle-class families who are health-conscious. The company reported RMB 500 million (USD 69.7 million) in revenue for 2024. Moreover, it is leading the domestic low-temperature Greek yogurt market in China. As the low-temperature yogurt market is showing signs of revival, Oarmilk is continuing expansion into this niche. s it invested heavily in health-centric innovations.

China’s thriving yogurt market: trends, brands, and challenges

• China’s yogurt market has reached RMB 199.8 billion as of July 2025. The market is expected to grow annually by 6.98% from 2025 to 2030.
• Chinese yogurt comes in two main varieties based on storage temperature. Low-temperature yogurt, favored for its taste and nutrition, but with a shorter shelf life. Room-temperature yogurt, which has a longer shelf life but is seen as less nutritious.
• Health consciousness is driving consumption of yogurt in China, with a preference for low-fat, additive-free, low-sugar, high-protein options.
• Major Chinese yogurt brands include Yili’s Ambrosial, Junlebao, Yili, Mengniu’s Chunzhen, and Guangming’s Moslian.
• Blueglass and More Yogurt are the most prominent retail stores for high-end yogurt on the go in China.

This article China’s yogurt market: a billion-dollar opportunity for brands is the first one to appear on Daxue Consulting - Market Research and Consulting China.

Download our China luxury market report

The rise in popularity of pop-up stores in China

As experiential retail takes center stage, pop-up stores have become increasingly prevalent in China. In fact, the transaction volume of pop-up stores in China could reach RMB 832 billion (USD 115 billion) by 2025, representing a 260% increase in just five years.

Pop-up stores are often considered a form of guerilla marketing that can help a brand achieve strong short-term growth in sales, engagement and awareness. It was around 2012 when the term “pop-up” began being used. Prior to this, pop-ups were often just vendors who set up shops on the street.

Around this time, social media platforms such as Weibo and WeChat began to rise. These apps played a big role in amplifying the visibility and virality of pop-up events. They helped spread these experiences online, reaching audiences widely across China.

Luxury brands bring interactive experiences rooted in culture and heritage

As pop-up stores offer wide market access, they have allowed luxury brands to remain exclusive while creating more approachable and engaging experiences. In the Chinese luxury market, consumers no longer prioritize status but rather culturally resonant, personal value-driven, and tech-innovative experiences.

On June 6^th, 2025, Louis Vuitton launched a pop-up event in collaboration with the Shanghai Postal Museum and contemporary Chinese artists to show the brand’s growing role in preserving cultural heritage. The nine-day “Post Something Interesting” (邮点意思) pop-up transformed the historical space into an immersive cultural experience that combined tradition with technology.

Visitors shared travel memories through WeChat, which were then turned into creative stories using AI. The space also offered books, designer stationery, and a postcard station where visitors sent limited-edition cards with special stamps made with China Post. The pop-up became a huge sensation online, especially on RedNote (also known as Little Red Book in China). The hashtag “LV post something meaningful” (#LV邮点意思) generated more than 109 million views as of July 2^nd, 2025.

Brands strengthen their identity through experiential store design

Pop-up stores also allow brands to visually express their identity through thoughtful design. In 2024, a Swedish fashion brand Arket (under H&M group) opened its first pop-up store in Shanghai. It designed the store according to the brand’s Nordic and minimalistic aesthetic. The space was inspired by the color white and presented archetypes of the brand’s versatile wardrobe made up of essentials for every occasion. The pop-up also offered limited-edition collection exclusive to the pop-up, consisting of the customized font Arket Sans which is printed onto T-shirts, canvas bags, cardholders and luggage tags. There was also a cafe attached to the pop-up that drew in more foot traffic and encouraged community engagement.

Moreover, in May of 2024, Dior brought a luxury resort experience to Sanya, decking out the poolside in branded cushions and parasols. This activation was well perceived by visitors and consumers. The hashtag “Sanya Edition Dior pop-up” (三亚艾迪逊dior快闪) garnered 4.5 million views on Xiaohongshu as of July 2^nd, 2025. By crafting an environment that embodies the brand, from the decoration to activities, these pop-up experiences let visitors fully immerse themselves in the brand’s world.

Emerging brands leverage co-branded pop-up stores for visibility

Butterbear is a Thai IP that’s been gaining traction in China ever since it launched its first pop-up store in April 2025. It collaborated with Zara to launch a space with cute Butterbear-themed installations to present the Butterbear for Zara collection. The pop-up was designed like a fun and dreamy kids’ shop, mixing the look of old-fashioned bakeries with Butterbear’s soft, pastel-colored world. It aimed to create a warm, cozy space that felt like a storybook and was perfect for taking photos to share online.

Butterbear has also teamed up with Casetify to create a cute retail experience in Hangzhou, called the Spring Dessert Shop. This experience features pastel colors and blends playful design with the collectible culture, tapping into the kawaii aesthetic and nostalgic branding. The main selling point was the limited-edition gift box, available exclusively at the pop-up as well as surprise gifts. With these pop-ups all over China, Butterbear is raising awareness of its brand and products through storytelling and shareable moments.

Pop-up stores are not replacements of traditional stores

Pop-up stores should not be seen as a substitute for long-term stores. They are used for two completely different purposes. In malls in China, brands that already have a traditional long-standing store will open a pop-up store in the same mall to increase their exposure and traffic. Pop-ups often offer short-term leases, high-frequency turnover, and greater operational efficiency with lower trial-and-error costs. They are more suitable for brand experimentation. They tend to focus more on interaction and visitor experience as a way to build long-term brand image and communication, rather than immediate profit.

Building a successful pop-up store in China

• Pop-up stores in China are not just retail spaces but cultural playgrounds. Brands use pop-up stores to offer exclusive experiences that fuel excitement and deepen consumer connection.
• Luxury brands are successfully building pop-up stores that allow them to remain exclusive while allow them to offer more approachable and interactive experiences. In June 2025, Louis Vuitton collaborated with Shanghai Postal Museum for a nine-day pop-up featuring exclusive products and AI installations.
• Pop-up stores offer a cost-effective way for smaller brands in China to boost visibility, generate short-term buzz, and build brand awareness.

Mastering China’s Luxury Market Dynamics

As China’s luxury market witnesses a robust rebound, positioning your brand effectively in this evolving landscape is paramount. We specialize in strategic consulting for luxury brands aiming to penetrate or expand within the Chinese market, leveraging our deep understanding of local consumer preferences, cultural nuances, and digital trends.

Our Services Include:

1. Market Insight: We provide comprehensive analyses of the latest trends and consumer behaviours in China’s luxury sector, ensuring your brand stays ahead of the curve.
2. Brand Localization: Tailoring your brand’s narrative to resonate with Chinese cultural values and consumer expectations, enhancing relevance and appeal.
3. Consulting Services: We offer strategy and management consulting every step of the way.
4. Regulatory Navigation: Assisting with the legal and regulatory aspects of entering and operating in the Chinese market, ensuring smooth and compliant business practices.

Connect with our team of experts to refine your strategy and secure your brand’s position in China’s thriving luxury market.

This article Building a pop-up store in China that leaves a lasting impression is the first one to appear on Daxue Consulting - Market Research and Consulting China.