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Perfect Diary’s rise between 2017 and 2020

Founded in 2017, Perfect Diary is a young Chinese makeup brand under beauty giant Yatsen Holding. It targets women aged 20 to 35, with relatively high spending power. In March 2017, it set up flagship stores on Taobao and Tmall. Just six months later, it opened an official account on RedNote (known as Xiaohongshu in China), launched its own WeChat store, and inaugurated three pop-up stores in Shanghai. During the 2018 Double 11 festival, the brand generated over RMB 100 million in sales in just 90 minutes.

In 2020, this C-beauty brand was recognized for its outstanding performance, receiving an award at the Tmall Golden Makeup Awards, known as the “Oscars of the beauty industry”.  It won three awards: Best Lipstick, Best Foundation, and Best Product for its 12-color animal shadow palettes. Since then, Perfect Diary has become one of China’s top beauty brands.

Moreover, during the Double 11 promotion in 2020, the brand sold over 600 million products during the promotion, imposing as the highest-selling makeup brand on Tmall. The company’s annual net income exceeded RMB 7.23 billion in 2020.

Perfect Diary’s strategies driving its early success

1.     Co-branding collaborations with popular IPs

Co-branding in China is a valuable tool to create buzz and boost sales in the beauty industry. According to the CEO of Perfect Diary in China, Huang Jinfeng, a new brand can get more exposure by co-branding with other popular intellectual properties (IPs). The brand leveraged Chinese breathtaking natural landscapes to inspire the color combinations in the eyeshadow palette. This unique approach to makeup design captured the interest and excitement of a large number of consumers, resulting in the product winning the prestigious 2021 Top 10 Annual National IP Crossover Collaboration Award.

Another successful collaboration was the one with Oreo in 2020. Inspired by the shape of Oreo cookies, the Chinese makeup brand launched two limited-edition air cushion creams, Classic Black and Cherry Blossom Pink. This partnership not only provided consumers with a unique shopping experience but also generated significant buzz, expanded the brand’s influence, and empowered the brand to stand out in the competitive beauty market.

2.     Effective KOL strategy

Celebrity endorsement and KOL marketing played a key role in Perfect Diary’s strategy in China and abroad. By collaborating with celebrities, the C-beauty brand capitalized on the Chinese idol economy. In October 2020, the brand declared Zhou Xun, a renowned actress in China, as its first global spokesperson. Zhou Xun was the first Chinese actress to win the most important national cinema awards (Golden Horse Awards, Golden Academy Awards, Golden Rooster Awards). The brand chose Zhou Xun as its global spokesperson to convey the message of “beauty has no limits” to young women worldwide, as she is regarded as a symbol of beauty and accomplishment by the Chinese audience. This collaboration between the brand and Zhou Xun sparked lively discussion on social media platforms such as Weibo, attracting a significant number of audiences.

Moreover, KOL marketing helped the brand create momentum on the internet in China. Perfect Diary collaborated with Li Jiaqi, one of the most famous Chinese live-streamers. During the 2019 Double 11 festival, this collaboration helped the brand garner the most attention among all Chinese cosmetics products and brought its brand awareness to new heights. In February 2020, Perfect Diary and Li Jiaqi’s pet dog Never jointly launched a collection of animal-themed eyeshadows, which sold 160,000 units in just 10 seconds. By leveraging the bandwagon effect, this C-beauty brand was able to reach a wider audience of potential consumers.

3.     Leveraging intensive promotions on social media

This Chinese makeup brand relied on intensive promotions on social media to accumulate high-quality user reviews, improve its brand reputation and reach younger users. For instance, it leveraged the community advantages of Xiaohongshu and Bilibili, which have a significant user base consisting of individuals born in the 1990s and 2000s. The brand’s official account on Xiaohongshu boasted over 2 million followers as of August 2023, and a search for the brand on Bilibili yielded dozens of positive reviews and titles, such as “best value products” and “high-quality domestic cosmetics”.

Falling from the top in 2021

The turning point for the brand came in 2021. It fell from its top spot and ranked fourth on the Tmall makeup sales list during the 2021 Double 11 festival. Moreover, during the 2022 Double 11, it dropped out of the top 20 brand list.

Overemphasizing marketing over quality

Yatsen Holding’s net revenue has been falling since 2021, dropping to RMB 3.4 billion in 2024 — a 41.2% decrease from RMB 5.84 billion in 2021. While the pandemic contributed to the downturn, a more significant factor is the brand’s tendency to overemphasize marketing at the expense of quality.

For example, in 2020, the brand’s marketing expense amounted to RMB 3.41 billion, accounting for 65% of the total revenue. To put this into perspective, if one Perfect Diary lipstick was RMB 100, then the marketing cost of it was 65 RMB. In contrast with the heavy marketing investment, the product research and development costs were lacking. According to its financial statement from 2018 to 2020, its research and development expenditure rate was 0.4%, 0.8% and 1.3%, respectively. Such low research and development expenditure generated quality issues, then sparking consumers’ outrage.

In addition, in 2021, the live commerce industry faced a “big reshuffle” following a crackdown on tax inspections. This posed significant challenges for brands that relied heavily on KOL marketing in China. The impact of this challenge is evident in the company’s performance, with revenue growth dropping sharply from 337% in 2019 to 11.6% in 2021.

Shifting towards a makeup-skincare hybrid brand

Perfect Diary is shifting away from its overreliance on marketing at the expense of its products and focusing on its products. As Chinese consumers seek products that have both aesthetic and functional benefits, it is developing makeup-skincare hybrid products (妆养一体).

This strategic pivot began in September 2023, when it launched the first Biolip essence lipstick, marking the brand’s entry into makeup-skincare hybrid innovation. This product combines features of a lipstick, serum, and mask, powered by the proprietary Biolip technology that uses biotech ingredients with a patented pomegranate peptide complex. Building on this, in September 2024, it launched the Second-Generation, an upgraded version that uses Biotec technology. This version includes anti-aging and regeneration benefits, beyond just hydration and nourishment.

The Biolip Essence Lipsticks have experienced a cumulative sales of 3.8 million as of November 2024 and ranked number one on eight major bestseller lists, including Tmall Lipstick New Releases, Douyin Double 11 Beauty Hot-Selling Gold List, and JD.com’s Rising Domestic Lipstick Bestseller List.

To sustain the momentum, the company continues to invest in research and development, working with scientists and clinic institutions – like it did for the development of its Biolip Essence Lipsticks. However, skincare-infused makeup is not unique to Perfect Diary. In fact, local brands such as FunnyElves (方里) and foreign ones like Bobbi Brown (芭比波朗) are already doing it. Therefore, whether Perfect Diary can reignite the consumer excitement similar to its early years – without overrelying on heavy marketing – remains uncertain.

Lessons from Perfect Diary’s decline

• Perfect Diary leveraged KOL marketing, co-branding, and digital marketing to get to the top of the cosmetics market in China.
• However, this Guangzhou-based beauty brand put too much emphasis on marketing but not enough on quality. As a result, it started losing ground and hasn’t recovered yet.
• Perfect Diary is focusing on its products, developing skincare-infused makeup products through collaboration with scientists and clinical institutions. While its makeup-skincare hybrid lipsticks have received a warm response, standing out in a saturated market remains a challenge.

Contact us for in-depth beauty market research in China

The cosmetics market in China is a rapidly evolving landscape, driven by the rising demand for high-quality products, innovative ingredients, and sustainable practices. Daxue Consulting offers specialized market research in China, providing a comprehensive understanding of the preferences, behaviors, and emerging trends shaping the cosmetics market.

Our Chinese consumer insights empower businesses to tailor their products and marketing strategies to resonate with local tastes and expectations. We offer consulting services that help you stay ahead of industry developments and achieve sustainable growth. Connect with us today to discover how our expertise can support your brand’s success in China’s thriving cosmetics market.

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Mixue Group’s history dates back earlier than McDonald’s and Starbucks

Mixue Group’s history dates back to 1977, when Zhang Hongchao, a student at Henan University of Economics and Law, opened a small shaved ice shop named “Cold Snap Ice” (寒流刨冰) in Zhengzhou, Henan province. He started this as a part-time gig to help with his family finances. However, it didn’t turn out well, eventually leading to its close.

In 1999, however, Zhang opened a second store and formally registered it as Mixue Bingcheng (蜜雪冰城), meaning “honey snow ice city”. This time it sold soft-serve cone treats and rapidly attracted nearby students and locals of low incomes. Over the years, it expanded by building centralized factories in 2012, introducing new products like bubble tea, launching Lucky Cup in 2017. Since 2018, it started expanding to other countries, opening its first store in Vietnam.

Low costs and prices make Mixue accessible

Tea brand Mixue’s flagship products, such as lemonade and milk tea, are priced around RMB 2 to 8 (about USD 1 or less), making them appealing amid the economic slowdown and accessible to a wide range of consumers.

This pricing strategy is possible due the company’s ability to keep costs low through supply chain optimization. Mixue Group controls its entire supply chain, from raw material sourcing to production and distribution. 60% of the ingredients it supplies to its franchisees are self-produced. This reduces the costs and ensures consistent product quality. For example, its procurement costs for milk powder and lemon of the same type and quality were 10% and 20% lower, respectively, than the average of its competitors.

Mixue focuses on emerging markets

As of September 30^th, 2024, Mixue Group is the largest freshly-made drinks company in China and in the world in terms of number of stores. It has over 45,000 stores in China and about 4,800 stores in 11 other countries.

Mixue Group has extensive presence in lower-tier cities

In China, the Group focuses on sinking markets. As of September 30^th, 2024, out of its 40,510 stores in mainland China, 57% of its stores were in third-tier and lower-tier cities. Only 5% of its stores were in first-tier cities, 20% in new first-tier cities, and 18% in second-tier cities.

The Group has succeed in growing in lower-tier cities and rural areas due to the lower operating costs, untapped demand, and rapid expansion. The rent and labor costs are significantly lower in smaller cities, allowing it to keep its low-price strategy. Consumers in these areas have less access to trendy food and beverage options, making it an attractive choice. Moreover, its franchise model allows it to rapidly expand in low-tier cities, often outpacing its direct competitors who focus on first-tier and second-tier cities. For instance, as of September 2023, 56% of Mixue Group’s stores were in third-tier cities and below. This outpaces Shuyi (书亦烧仙草, 54%), Auntea Jenny (沪上阿姨, 50%), and Good Me (古茗, 48%), and Cha Panda (茶百道, 39%).

Mixue expands to other countries

With competition intensify in lower-tier cities, Mixue Group is expanding to other countries. Most of its overseas stores are in Indonesia (2,667 stores) and Vietnam (1,304), which together generate around 70% of the overseas’ revenue. It also has presence in other regions beyond Southeast Asia, including South Korea and Australia.

Mixue’s franchise model enables rapid expansion

Mixue Group’s franchise model is a cornerstone of its success. According to Mixue Group’s prospectus, 99% of its stores are franchised as of September 2024. It charges a lower franchise free, making it accessible to small business owners and enabling it to expand rapidly, especially in lower-tier cities. The initial budget fee is about RMB 210,000, lower than Good Me’s 230,000 for example.

Moreover, Mixue Group’s revenue mainly comes from selling supplies, including ingredients and packaging, and equipment, such as ice cream makers and refrigerators, to its franchisees, not retail sales.

Tea brand Mixue’s mascot “Snow King” builds a fan base

Mixue has built a strong brand identity, particularly through its strong Intellectual Property (IP) strategy and viral marketing efforts. In 2018, it introduced Snow King (雪王), its snowman mascot and developed Snow King-themed stores, merchandise, and animated series. This makes the brand more approachable and helps build a deeper emotional connection with its fans.

One of Mixue’s most recognizable element is its catchy theme song saying “You love me, I love you, Mixue Bingcheng is so sweet” (“你爱我，我爱你，蜜雪冰城甜蜜蜜”). It became a social media sensation, spreading on platforms like Douyin (Chinese version of TikTok) and Xiaohongshu (also known as RedNote), with netizens creating memes, covers and parodies, effectively promoting the brand for free.

Mixue leverages co-branding in China to refresh its experiences

To expand its consumer base and build a fun and refreshing experience, Mixue engages in co-branding in China. For example, in 2024, Mixue teamed up with Garfield to launch a series of orange-colored drinks like the Cheese Milk Cap Osmanthus Tea and Osmanthus Glutinous Rice Tea, along with a packaging featuring Garfield and Snow King. Additionally, this collaboration introduced limited-edition merchandise like cups, fridge magnets, and Good Luck Machine toy, creating an urgency for people to go to its stores.

This collaboration coincided with the release of the movie Garfield on Children’s Day on June 1^st, 2025, appealing to both children and families alike. One RedNote user said, “Mixue collaborated with our childhood friend Garfield, and it looks absolutely stunning!”

Chinese beverage brand Mixue grows from a humble shop to a giant empire

• Mixue Group is the world’s largest fast-food chain by store count, surpassing McDonald’s, Starbucks, and Subway. As of September 2024, it has over 45,000 stores in China.
• Its success lies in its low-cost franchise model and supply chain efficiency, innovative branding and marketing, and competitive pricing strategy.
• It follows a low-cost franchise model, making it accessible to small business owners. The initial budget is about RMB 210,000, which is lower than its competitors. In 2012, it started building its centralized factories. As of 2025, it produces 60% of its ingredients in-house, allowing it to maintain low prices and consistent quality while also making delivery to franchisees more efficient.
• Mixue has built a strong brand identity through its mascot Snow King, viral theme song, and co-branding efforts. Its catchy theme song went viral on social media, and it collaborated with Garfield following the release of the Garfield movie.
• Mixue Group is known for its budget-friendly products, which especially appeals to lower-tier consumers in China, who have lower incomes and have less access to trendy food and beverage options compared higher-tier cities.

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Where fast-food chains are headed

KFC is the leading fast-food chain in China, with over 11,648 locations in 2024. McDonald’s (麦当劳) follows, also having expanded significantly that year. It opened 917 new stores, bringing its total count to 6,820, or about 70% of its new international licensed market openings.

A key factor in the success of foreign brands is their ability to secure prime locations in top-tier cities. 61.0% of McDonald’s stores and 61.7% of KFC’s stores are located in shopping and workplace areas – prime locations with high foot traffic. This compares to only 14.3% of Wallace’s stores and 14.2% of Tastien’s stores. The strong presence in these areas allow foreign brands to have greater visibility and consumer reach compared to local brands.

However, as top-tier cities experience significant financial pressure and the disposable income of lower-tier cities increases, fast-food brands are expanding to the latter. Lower-tier cities present significant growth potential due to its lower rent and labor costs, rising middle class, and increasing consumer spending on dining out and entertainment.

How foreign fast-food brands like KFC achieve success in China

These global fast-food giants have achieved impressive success in the Chinese market, primarily due to their early entry, well-established brand recognition, and their willingness to adapt to Chinese tastes.

For instance, foreign brands often use emotional storytelling and cultural values in their marketing campaigns. For example, KFC emphasizes family values and traditional festivals, which resonates with Chinese consumers on a personal level and strengthens brand loyalty. They offer family-related packages such as children’s meals and family buckets to promote family dining experiences. KFC also sponsors children’s events and birthday parties, reinforcing its position as a family-friendly brand.

What makes homegrown fast-food chains in China unique

China’s local fast-food industry, including homegrown chains like Yonghe King (永和大王) and Real Kung Fu (真功夫), have established strong brand recognition since the 1990s. They offer a diverse range of menu items such as dumplings, noodles, and hearty stewed pork rice dishes that blend both Western and traditional Chinese cuisine.

What sets these Chinese local fast-food chains apart from international ones is their use of traditional cooking techniques and authentic flavors. For example, Yonghe King freshly grinds its soy milk every four hours. In contrast, KFC uses powdered soy milk rather than freshly ground soybeans. Yonghe also features hand-made youtiao (fried dough sticks) prepared freshly at six every morning. By preserving the essence of Chinese cooking while maintaining the speed and convenience of fast-food, this commitment to authenticity elevates the fast-food experience beyond mere quick meals.

How Wallace compares to KFC and McDonald’s

Wallace (华与华), previously known as CNHLS, has over 20,065 stores in China as of June 2024. This makes it one of the largest fast-food chains in the country, surpassing international brands like KFC and McDonald’s in terms of store count. More than half of Wallace’s stores are in third- and fourth-tier cities, where it targets price-conscious consumers. Wallace is known for its budget-friendly offerings, with fried chicken burgers priced as low as RMB 10. This competitive pricing strategy helps it maintain a strong market presence.

The rise of Tastien, the “Chinese burger” king

Tastien (塔斯汀), while relatively unknown in major cities, has wide presence in low-tier cities. As of May 2024, Tastien operates 7,254 stores across 342 cities in 22 provinces in China, surpassing Burger King and Pizza Hut. It is known for its commitment to “express Chinese culture with Chinese taste” (“用中国味道表达中国文化”) and introduction of Chinese burgers featuring handmade buns. Its Chinese-style burgers are made with handmade flatbreads and unique fillings like Peking duck (北京烤鸭) and Mapo tofu (麻婆豆腐).

Chinese consumers praise Tastien’s commitment to Chinese roots. On popular review platform Dianping (大众点评), a user said, “I love the burger bread. It really has a Chinese style.” Another user on RedNote (小红书) commented, “The pepper chicken leg burger is amazing. It is completely different from the Western burger method, the outside of the burger is thin, and it feels healthier than a Western burger!”

Tastien’s competitive pricing and expansion to lower-tier cities

Tastien’s competitive pricing has helped its expansion to first-tier cities, especially when compared to international chains. This affordability allows it to be favored among budget-conscious consumers and is a key factor that drove the brand’s success in the highly competitive Chinese fast-food market.

A Weibo user, for instance, pointed out the stark difference in prices between Tastien and Shake Shack. With promotions, a Tastien burger can bring the cost of a burger down to just RMB 3, while a basic Shake Shack hamburger is RMB 38.

Tastien’s new burger incorporates Chinese elements like Litsea cubeba

On June 7^th, 2024, Tastien launched products inspired by ethnic minority elements, including the “Chinese Burger with Mountain Wild Fragrance” (山野寻香风味中国汉堡). The burger incorporates ingredients like Litsea cubeba, an herb used in traditional Chinese medicine, and lotus roots, which are commonly consumed in the summer. On Weibo, the hashtag #TastienNewEthnicMinoritiesBurger garnered 6.2 million views only a day after its release, highlighting people’s interests in exploring ethnic flavors.

Moreover, leveraging the Guochao (国潮) wave, the packaging incorporates ethnic features. With its Chinese lion at the center, it incorporates local elements like the caisson design – found in traditional Chinese architecture – Litsea cubeba, auspicious clouds, and flowers in the border details.

Food safety issues among Tastien and other fast-food restaurants

Food safety is a major concern for Chinese consumers. A notable case in the food and beverage industry in China is the 2008 Chinese milk scandal. Milk and infant formula were contaminated with melamine, causing about 300,000 children to fall ill and at least six infants to die.

Consumers have expressed concerns about Tastien’s food safety. On platforms like Xiaohongshu and Weibo, some users have shared concerns about undercooked chicken and inconsistent food quality across stores. For this reason, many consumers still prefer international brands like McDonald’s and KFC, who are perceived as safer and of higher quality.

China’s local fast-food industry: Winning consumers with affordable and Chinese-style meals

• Having initially focused on first-tier cities, foreign brands are expanding to lower-tier cities. Local brands have large presence in lower-tier cities, appealing to consumers through their affordability and incorporation of Chinese elements.
• KFC and McDonald’s are leading fast-food chains in China. Their success largely stems from their early entry, well-established brand recognition, and successful localization to Chinese tastes.
• Homegrown brands like Yonghe King and Real Kung Fu have established strong brand recognition since the 1990s. They particularly stand for their craftsmanship and authenticity.
• Wallace, a domestic budget-friendly chain, has surpassed McDonald’s and KFC in terms of store count. With over 20,065 stores, it focuses on third- and fourth-tier cities.
• Tastien has become a notable player, gaining recognition for its unique “Chinese burger”. The brand stands out with its strategic integration of traditional Chinese cultural elements.
• Tastien’s ethnic minority-themed menu items, such as the “Chinese Burger with Mountain Wild Fragrance,” have gained significant attention online, aligning with the Guochao trend.

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Local giants: Powerhouses in medical device manufacturing in China

Chinese medical device companies benefit from robust government support under initiatives such as the “Made in China 2025” strategy, which aims to reduce reliance on imports and foster domestic capabilities in high-performance medical equipment. In 2023, 11 Chinese companies were ranked among the world’s top 100 medical device companies based on their annual revenues from medical devices and supply-related segments.

Leading companies in China have made significant investments to advance in various medical technology fields. For instance, Mindray Medical specializes in life information and support, in vitro diagnostics, and medical imaging. In 2023, Mindray generated RMB 34.93 billion in revenue, with its investment in R&D accounting for 10.82%.

Similarly, Shanghai United Imaging, known for advanced imaging devices such as MRI and CT scanners, has R&D spending that makes up 16.8% of the RMB 11.41 billion revenue in 2023. This focus on innovation led to the company securing 16th place globally and first in China on the 2023 Global Medical Device Industry Invention Patent Ranking by IPRdaily and incoPat.

MicroPort, with a global revenue of RMB 6.89 billion in 2023, has also seen significant results in its R&D projects, with RMB 2.69 billion spent. The company obtained 33 Class III medical device registration certificates from the National Medical Products Administration (NMPA) and continues to lead with innovative devices for nine consecutive years.

Medical lab automation systems (mLAS) improve efficiency in hospital operations

Major Chinese hospitals are extending their adoption of the Medical Lab Automation System (mLAS) to improve hospital operations. MLASs automate diagnostics tests by accelerating the processing of biomedical specimen analysis and reducing the need for manual intervention. This results in quicker turnaround times for test results, enabling healthcare professionals to make faster, more informed decisions.

Furthermore, Total Laboratory Automation (TLA) takes integration further, connecting all testing systems for a fully automated lab, enhancing efficiency, and reducing human involvement. It incorporates technologies like industrial automation, specimen transport systems, and data management for streamlined operations. The automation then reduces human error, improves consistency, and optimizes resource allocation, freeing up staff to focus on higher-priority tasks.

Due to its nature, each mLAS is highly customized to fit the specific needs of individual hospitals. This localized approach ensures that the systems are tailored to the specific needs and layout of each hospital. As such, the tailored approach ensures that the system integrates seamlessly with existing hospital infrastructure, improving workflows and patient care. The custom-made solutions and deep localization of technology exclusive to Chinese medical device manufacturers position them at the forefront of innovation.

Preventive point-of-care coverage expands: Opportunities for medical device manufacturers

The “Healthy China 2030” plan placed an emphasis on early screening and intervention for chronic diseases. Thus, there is a strong focus on point-of-care testing (POCT) to improve the accessibility of healthcare services across the nation. By 2025, the goal is to achieve a 20% coverage rate for chronic disease prevention by leveraging POCT as a key enabler.

The aim is to achieve chronic disease prevention with a target coverage rate of 20% by 2025.

 Key POCT-related measures include:

1. Blood pressure screening in primary healthcare institutions, secondary hospitals, and even public spaces for individuals aged 35+.
2. Opportunistic screening for cardiovascular diseases and cancers in hospital and community settings.
3. Lung function testing for individuals aged 40+ and high-risk groups to detect respiratory diseases early.
4. Hypertension, hyperglycemia, and hyperlipidemia management with POCT tools to achieve over 65% standardized management at the primary care level.
5. Expansion of cancer screening programs using accessible diagnostic tools.

“Despite tremendous advances in treatment protocols and medical technologies over the past few decades, China still faces significant challenges in screening and confirmatory diagnosis. This often results in patients beginning treatment at a late stage of disease progression, which negatively impacts their recovery prospects. To tackle this issue, China focuses not only on streamlining testing and diagnosis in large hospitals but also on facilitating early screening as close as possible to the populations, especially in rural areas. This explains the recent surge in POCT offerings across multiple therapeutic areas.”

– Irénée Robin, Managing Partner at VVR Medical

These efforts present opportunities for medical device manufacturers where there is a growing demand for portable, accurate, and user-friendly POCT devices. Moreover, the push for widespread screening and management of chronic diseases across the nation opens up new markets for scalable and cost-effective POCT devices.

Foreign players in China: Adaptation strategies by multinational companies

International companies remain key players in China’s medical market, contributing to the evolution of medical device manufacturing in China. In 2023, half of the approved registrations by the NMPA were for imported medical devices.

Significant changes compared to 2022 in the top five imported medical device categories included increases in the passive implantable device (by 43.3%) and dental device registrations (by 57.8%) and a decrease of 44.2% in medical imaging device registrations. Country-wise, the US, Germany, Japan, South Korea, and France together accounted for approximately 77% of the total first-time registrations for imported medical devices in 2023.

International players have adapted by establishing local manufacturing facilities and R&D centers to increase the proportion of locally manufactured products. For example, GE Healthcare, headquartered in the U.S., operates five factories in China, with a sixth under construction in Chengdu, focusing on the domestication of high-end medical equipment like CT, MRI, and PET/CT systems. Similarly, Philips runs five production bases in China, with over 90% of its China sales coming from locally manufactured products.

As one of the first multinational medical technology companies to enter China, Medtronic has introduced over 700 innovative products to the Chinese market, including cutting-edge technologies like the Micra leadless pacemaker. Medtronic’s China R&D center focuses on localized innovation to address clinical challenges, with 65 products developed, 50 launched in China, and 23 achieving global sales.

Da Vinci Xi: Locally produced robotic surgery devices breakthrough

Since its introduction in China in 2006, over 360 Da Vinci robots have been installed, benefiting 420,000 patients by the third quarter of 2023. The collaboration between Fosun Pharma and Intuitive Surgical, through Intuitive Fosun, has driven the localization of production, including an RMB 700 million investment in an industrial base in Pudong, Shanghai.

By 2023, the first Intuitive Fosun Da Vinci Xi surgical robot was successfully assembled in Shanghai. The domestically produced Da Vinci Xi received approval from the National Medical Products Administration in the same year. This represented a breakthrough in China’s medical device manufacturing technology.

Intuitive Fosun has also localized the biopsy needle production for the Ion bronchoscopy system, meeting 70% of global demand. This initiative sets a blueprint for the development of advanced “Made in China” medical devices, enhancing innovation and expanding the global footprint of Chinese medical technology.

Competitive edge: How companies leverage their strengths in the Chinese market

China’s medical device market is shaped by domestic firms’ cost-effective solutions in lower-tier cities and rural areas, while international brands dominate premium segments. However, tendering mechanisms and quality-based evaluations create opportunities for multinationals to compete on innovation and service rather than price. For instance, Beijing’s scoring system assigns 70 points to quality—considering clinical efficacy, innovation, brand, and after-sales service—and 30 points to price, favoring differentiated international products.

To further enhance brand reputation and trust, foreign medical device companies also invest in localization and sustainability initiatives. For example, Philips focuses on supporting equipment upgrades and lifecycle service solutions, while GE Healthcare engages in health awareness programs such as the Pink Ribbon Campaign for breast cancer awareness. These efforts help strengthen their market positioning and long-term competitiveness in China’s evolving medical landscape.

Engine of growth: Regional manufacturing hubs contributing to growth and export

The Yangtze River Delta, Bohai Rim, and Pearl River Delta are the main bases of medical device manufacturing in China, each offering unique strengths. While these hubs produce a wide range of devices, they are increasingly focusing on high-end diagnostic imaging, precision diagnostics, and in vitro devices.

The Yangtze River Delta, centered around Shanghai, Hangzhou, and Nanjing, is a major hub with more than 120 higher education institutions offering medical device-related programs and around 280 clinical trial centers, representing 20% of the national total. Shanghai leads in the registration of first-time imported medical devices, accounting for 64% of the national total in 2024.

The Bohai Rim, with Beijing as its core, is a center for technological innovation and research, supported by institutions like Tsinghua University and the Chinese Academy of Medical Sciences. Beijing accelerates innovative medical device approval through fast-track approval programs, including a green channel for urgent imports and tailored support for domestic breakthroughs in registration and licensing.

The Pearl River Delta, centered around Shenzhen and Guangzhou, is a key manufacturing base. Shenzhen pioneered China’s first 3.0T high-field MRI equipment, making China the third country to master such technology. Furthermore, the region plays a crucial role in exports. Guangdong province accounted for 23.9% of medical device exports in the first half of 2024, valued at RMB 40.42 billion.

Medical device manufacturing in China at a glance

• The medical device market is growing rapidly with strong government support and rising domestic innovation in medical device manufacturing in China.
• Local players like Mindray, United Imaging, and MicroPort are key drivers of growth, though they face challenges in global expansion.
• Foreign companies such as GE Healthcare, Philips, and Medtronic are adapting to China’s market by localizing production and R&D.
• Competitive factors such as pricing, quality, after-sales service, and brand reputation play a crucial role in defining success.
• Regional hubs such as the Yangtze River Delta, Bohai Rim, and Pearl River Delta are critical to China’s medical device manufacturing success, each offering unique strengths and opportunities for innovation and export.

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Women’s empowerment and self-care

A 2024 survey of 1,226 respondents (mixed gender) found that 62.15% see International Women’s Day (三八妇女节) as a key occasion to celebrate women’s achievements and affirm their social status. Meanwhile, 51.06% of respondents feel that on this day, they experience care and recognition from all sectors of society, whether through special workplace benefits or broader societal attention to women’s rights.

The high percentage of women engaging in leisure activities like dining out, shopping, and attending events reflects their prioritization of self-care and happiness. This aligns with broader trends in China’s she-economy, where financially independent women, particularly millennials and Gen Z, are spending on themselves to enhance their quality of life. With nearly 400 million female consumers aged 20-60 driving annual spending of over RMB 10 trillion, China’s female consumer market became the third largest globally.

The continuance influence of the Sheconomy

The Sheconomy (她经济) continues to be a powerful driver of economic growth in China. Data shows that the female labor force participation rate in China was approximately 60.54% in 2024. This economic independence has translated into stronger purchasing power, making women a key demographic for brands.

The projected 4.8% compound annual growth rate (CAGR) in global female income outpaces the overall U.S. GDP growth rate of 2.4% in 2025. This widening gap highlights the increasing economic influence of women, which also presents vast opportunities for businesses that align with women’s priorities, such as self-care, sustainability, and empowerment.

Reclaiming the true spirit of Women’s Day

In recent years, Women’s Day in China has become heavily commercialized. E-commerce platforms and brands are using it as a marketing gimmick by promoting it as “Goddess Day” or “Queen’s Day.” These rebrandings were designed to appeal to younger women by emphasizing beauty, luxury, and consumerism, often sidelining the day’s original focus on women’s equality. Alibaba’s Tmall promoted “Queen’s Day” with slogans like “Live Your Beauty,” turning March 8 into a major shopping festival.

Since 2023, there has been a visible shift away from these commercialized labels toward reclaiming the term “妇女节” (Women’s Day). Many women feel that terms like “Goddess” or “Queen” trivialize their identities by focusing on external validation and consumption rather than substantive issues like rights and empowerment.

The word “妇女” (woman) was often avoided by younger generations due to its association with traditional roles like marriage and domesticity. However, feminist advocates argue that this rejection perpetuates stereotypes and undermines solidarity among women of all ages. Therefore, scholars and activists emphasize that Women’s Day should celebrate women’s achievements across political, economic, and social spheres rather than reducing it to a consumer event.

Ubras: Making the invisible discomforts visible

Ubras, a leading Chinese intimate apparel brand, has launched a powerful and thought-provoking campaign titled “Not Only Visible to Her” (不仅她可见). The campaign, encapsulated in a poignant short film, sheds light on the often-overlooked discomforts women face in their daily lives, particularly those caused by ill-fitting or poorly designed intimate wear.

Ubras uses this metaphor to draw attention to how these “invisible” issues often go unnoticed by society but are deeply felt by women. To address these challenges, Ubras has introduced its “Invisible Support Series” (隐形支撑系列), a new line of intimate wear designed to seamlessly blend comfort and support. The collection features innovative designs that conform to the natural curves of the female body, offering a “comfortable and supportive experience in every moment.”

The campaign goes beyond the realm of intimate apparel, acknowledging that women’s discomfort extends to many other aspects of daily life. From overly cold air conditioning in malls to car headrests positioned too high for the average woman’s height and the perpetually long lines for women’s restrooms, these are all examples of “invisible” challenges that disproportionately affect women. The campaign’s message is clear: women’s discomfort should no longer be invisible or dismissed as trivial. Ubras encourages women to break free from these constraints, listen to their inner voices, and embrace a life of freedom and self-expression.

Lululemon empowers women through movement

Lululemon’s “Live Like You Are Alive” (活出生动) campaign emphasizes women’s empowerment and age inclusivity by promoting the idea that movement is essential to living a vibrant and fulfilling life. The campaign encourages women to engage in various forms of physical activity, from running to yoga, as a way to celebrate their vitality and strength.

By showcasing individuals of different ages and life stages, the campaign challenges stereotypes about aging and promotes the idea that women can live actively and confidently regardless of their age. This aligns with Lululemon’s commitment to inclusivity and diversity in its messaging.

The “Live Like You Are Alive” campaign reflects shifting societal attitudes in China and globally toward women’s empowerment. It aligns with the growing Sheconomy by addressing women’s increasing focus on wellness, self-care, and experiential consumption. Furthermore, it supports International Women’s Day initiatives by encouraging women to celebrate their individuality through movement.

Why are these Women’s Day campaigns resonant in China?

With the rise of female empowerment, more women have gained and have begun to reject too much commercialization of Women’s Day and strive to restore Women’s Day in China to its original meaning. Women are now placing greater value on their abilities and strengths. They are breaking away from traditional definitions and seeking more recognition and support from society, particularly for marginalized and disadvantaged women.

Different professions and hobbies must be understood and supported by the public, with their talents and efforts acknowledged, especially by other women who may be struggling with self-doubt and societal pressures. These advertisements feature women from diverse backgrounds, showcasing their power and limitless potential in the simplest manner possible. These brands not only respect and understand women but also celebrate them. Female consumers may relate to these experiences or feel empowered by the brand’s acknowledgment and support of women, leading to a strong resonance.

Key takeaways from this article:

• Women’s Day in China has evolved from a holiday promoting gender equality to a mix of advocacy and recognition.
• Women continue to drive economic growth, contributing significantly to household income and making up a major consumer demographic in the beauty, fashion, and wellness industries.
• Women’s Day in China is shifting back to its roots. Once a holiday commercialized with “Goddess Day” and “Queen’s Day” marketing is aiming to restore its original focus on empowerment and rights.
• Ubras’ “Not Only Visible to Her” campaign highlights women’s overlooked discomforts, from ill-fitting intimate wear to broader societal inconveniences, advocating for greater awareness and solutions.
• Lululemon’s “Live Like You Are Alive” campaign empowers women through movement, challenging stereotypes about aging and promoting inclusivity.

This article Women’s Day in China: Shifting from consumerism to advocacy is the first one to appear on Daxue Consulting - Market Research and Consulting China.

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China’s sneaker market is thriving

According to Statista, the sneaker market in China is expected to generate USD 19.6 billion in revenue by 2025, with an estimated revenue of USD 13.7 per capita. China’s sizable population has contributed to the profitability of the sneaker market, which has shown consistent growth over the years.

Despite experiencing negative growth in 2021 due to the COVID-19 pandemic and the Russia- Ukraine war, the sneaker market has demonstrated an overall upward trend. The Compound Annual Growth Rate (CAGR) for the period 2025-2029 is expected to be 6.67% per year.

Young consumers unlock the potential of the sneaker market in China

China’s young consumers and increasing disposable income have contributed to the growth of the sneaker market. Middle-class consumers are increasingly brand-conscious and willing to pay high prices for brands that are internationally recognized. Sneakers, with their casual-sporty style, have emerged as a popular fashion trend among this group.

Health awareness among Chinese consumers is also on the rise. They are increasingly willing to invest in services and experiences that enhance their quality of life. There has been a rise in outdoor activities and citywalk engagement among city dwellers, which increased the demand for good pairs of sneakers.

Gen Z and millennials, though sometimes with limited income, prioritize sneakers as a form of self-expression. Secondhand marketplace platforms like Xianyu (Idle Fish) enable cost-conscious youth to participate in sneaker culture.

Dewu: revolutionizing the sneaker market and engaging with young Chinese consumers

According to EnData, 57% of the consumers in China in 2024 prefer purchasing sports products online. For sneakers priced between RMB 50 to RMB 300, consumers prefer to get those from sites like Taobao and Douyin. JD.com accounted for around 17% of online sneaker sales, where most of the transactions here ranged from RMB 500 to RMB 1,000 per pair.

There is a new rising platform that has gained popularity in the sneaker market, especially among the young generation. Dewu, a B2C and C2C e-commerce platform, is differentiated through its “authenticate first, ship later” shopping process and diverse product selection, making it a sought-after e-commerce platform.

Moreover, Poizon (the English name of the app) has successfully cultivated a vibrant lifestyle community that resonates with the younger generation. Within the app, users can engage with one another, discuss their purchases, and share their impressions. The platform boasts an active community of sneaker enthusiasts who extensively exchange information about the latest releases. It also offers an annual ranking of sneakers, which can influence consumers’ buying decisions.

The rise of national brands in China’s sneaker market

How “Guochao” promoted the rise of local sneaker brands

Guochao refers to the growing consumer preference for Chinese brands, designs, and culture, embracing traditional elements and invoking national pride. With the emergence of Guochao, Li Ning effectively leveraged its “Made in China” identity to promote its products, striking a chord with consumers by combining patriotism with supporting domestic brands.  The “Xinjiang cotton” scandal in 2020 further solidified this trend, leading to explosive growth in sales for Chinese brands like Li Ning and Anta, as more consumers chose to support local brands. Additionally, as some consumers shift toward consumption downgrade, they have become more price-sensitive. This makes the cost-effective offerings of local brands more appealing.

Consumers seek comfort, functionality, and style in sneakers

International sportswear brands like Nike, Adidas, and Skechers are prominent players in China’s sneaker market. Nike, in particular, has achieved tremendous success in the country. As sneakers and streetwear styles from the U.S. gained popularity in the country, established American brands like Nike enjoyed a strong global reputation for their quality, innovation, and stylish designs.

Meanwhile, Chinese consumers are shifting to outdoor brands for functional fashion as everyday wear. Previously niche and premium outdoor brands took the stage in China’s sneaker market. Urbanites in China’s southern cities, such as Shanghai and Shenzhen, are turning to breathable, lightweight, and waterproof materials such as GORE-TEX to cope with rainy winters and humid summers. Thus, brands like Salomon, Patagonia, On Running, and HOKA, which offer sleek designs that pair well with streetwear, are gaining traction.

Gorpcore: Instilling technicality into China’s sneaker market

Gorpcore is a fashion trend that started on Instagram. The term “gorp” means “Good Old Raisins and Peanuts” – the common trail mix among hikers. The trend emphasizes a rugged, outdoorsy look that incorporates functional sneakers, cargo pants, and puffer jackets into casual wear.

As Chinese consumers picked up on outdoor sports such as hiking and trail running, Gorpcore, which blurred the lines between outdoor gear and streetwear, was popularized by fashionistas on Chinese social media such as Xiaohongshu (also known as RedNote) and Douyin. Chinese consumers are looking for outdoor-inspired sneakers that provide functionality, such as waterproofing and durability and are fashionable for urban settings. This increased the popularity of brands such as Salomon, Hoka ONE ONE, and Merrell. Traditional sportswear brands like Nike also incorporate gorpcore-inspired designs under its Nike ACG series.

Latest developments in China’s sneaker market

• The market is projected to reach USD 19.6 billion by 2025, driven by a growing middle class, rising disposable incomes, and the popularity of sneakers as both fashion statements and status symbols.
• Gen Z and millennials are key consumers, prioritizing sneakers for self-expression. The “Guochao” trend has fueled the rise of domestic brands like Li Ning and Anta, as consumers embrace national pride and cost-effective options.
• Niche outdoor brands like Salomon and HOKA are gaining popularity as urban consumers seek stylish yet functional sneakers for activities like hiking and city walks, influenced by the Gorpcore trend.
• Platforms like Dewu (Poizon) are reshaping the sneaker market with their “authenticate first, ship later” model while fostering a vibrant community of sneaker enthusiasts and influencing buying decisions through annual rankings.

This article How outdoor trends and national brands are redefining China’s sneaker market is the first one to appear on Daxue Consulting - Market Research and Consulting China.

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Since 2019, the variety of imported energy drinks to China has been increasing, with brands like Red Bull, Monster Energy, and Carabao gaining acceptance. Moreover, the functional properties of energy drinks that help to combat fatigue and mild addictive quality have led to higher repurchase rates and consumer loyalty. According to Euromonitor, energy drinks experienced a compound annual growth rate (CAGR) of 11.8% from 2013 to 2023. This outpaces the overall soft drink industry growth rate of 4.1%, positioning energy drinks as one of the fastest-growing segments within the soft drink market.

Energy drinks market in China: Red Bull leads, domestic brands rise

Canned and bottled energy drinks have been enjoying a surge in popularity nationwide among their primary consumers, such as gym-goers, sports people, the working class, and school students who prefer a boosting beverage to recover their energy and stay awake.

In 2023, the top three players in China’s energy drinks market are Red Bull, Dongpeng Beverage (东鹏), and Hi-Tiger (乐虎). Red Bull leads in terms of market share based on its online sales, although its share has declined since the 2016 trademark lawsuit. It maintained its high-end status by sponsoring extreme sports events and building a strong presence in nightclubs, high-end dining, gyms, and spas. The powerful brand and premium positioning help the brand to create a loyal customer base.

Dongpeng Beverage emerged as the strongest domestic competitor. It adopted a price differential strategy by focusing on prefecture-level and lower-tier cities. It primarily relies on offline channels such as internet cafes, grocery stores, and supermarkets in factories and military bases.

Hi-Tiger adopted a combined strategy of sponsoring major local sports events like the Chinese Basketball Association (CBA) and optimizing its regional distributor model. Its parent company, Dali Foods, has a strong track record of brand incubation and a vast distribution network. Dali Foods’ extensive resources and experience in the food and beverage industry provide Hi-Tiger with a competitive edge in scaling nationwide.

Consumption occasions of energy drinks in China

These drinks are consumed mostly by young adults, particularly students, blue-collar workers, and fitness enthusiasts in China. For work-related consumption occasions, workers in the delivery, manufacturing, and construction industries often consume energy drinks to maintain stamina and endurance during physically demanding tasks. It is also popular among students who are preparing for exams and white-collar professionals who are in mental labor-heavy sectors such as research, finance, and tech sectors. These consumers leverage energy drinks to enhance focus and cognitive performance during long hours of mental exertion.

Additionally, energy drinks are popular in social settings and recreational activities. For instance, entertainment settings such as KTVs and bars or leisure activities such as video gaming and music festivals. Travelers, especially those who are practicing “special forces tourism,” often consume energy drinks to stay alert and energized during travel and work.

Per capita consumption of energy drinks is still quite low in China

The energy drinks market in China started expanding quite late, in the mid-1990s. The per capita consumption level of energy beverages is still significantly low, with broad room for growth. In 2023, Chinese consumption of energy drinks is ranked 9^th globally, with 1.6 liters per year. This is significantly lower than other countries and shows a huge gap as compared to the United States at 29.7 liters. The lower consumption per capita might be due to cultural preference to rely on strong tea or herbal tonic for an afternoon pick-me-up rather than energy drinks.

Moreover, energy drinks are often seen as premium products. This makes energy drinks perceived as less accessible to budget-conscious consumers. As such, its consumption is concentrated in urban areas, where consumers have higher disposable income.

Spotting an opportunity, local brands are introducing budget-friendly options into the energy drinks market in China. For instance, Hi-Tiger (乐虎) offers a product line that targets young adults and blue-collar workers. The brand is commonly found in lower-tier cities and sold at RMB 3 to 4 for a 250 ml can. This represents a 50% price discount as compared to international brands such as Red Bull and Monster Energy, which are usually sold at RMB 6 to 8 per 250 ml can.

Whilst energy drinks are gaining traction, there are posts on Xiaohongshu (known as RedNote in the West) where consumers are actively seeking to educate themselves about the different variants of Red Bull available in the market. Netizens discussed their confusion due to the presence of multiple formulations under the “Red Bull” name. Each product has distinct ingredients and regulatory classifications thus consumers self-educate on social media to make informed purchasing decisions.

Adapting to Chinese consumers: Low-cal and e-sports

The changing consumer preferences in China, such as growing awareness about health and fitness benefits and the willingness to pay more for a quality difference, indicate the energy drinks market will have to adapt. Concerns regarding high sugar content require upgrading products. In particular, the young population at the age of 25-35 years is the target customer for energy and sports drinks. Brands match consumers’ expectations, which include not only low-calorie, high-nutrition, functional features but also natural and fashionable drink products. For instance, Red Bull offers a sugar-free variant to cater to health-conscious consumers.

Monster Energy has strategically partnered with Tencent’s Honor of Kings (known internationally as Arena of Valor). It is one of the most popular mobile games in China that will help the brand to tap into the booming e-sports and gaming market. The brand sponsors major Honor of Kings tournaments, including the King Pro League (KPL). These tournaments attract millions of viewers both online (via platforms like DouYu, Huya, and Bilibili) and offline. This in turn provided Monster Energy with massive brand exposure among Chinese gamers.

Over the past decades, China’s industrialization and urbanization have been in the process of converting a large population to urban dwellers. This led to increased regulations, economic growth has continued to soar and develop into a market-based economy. The rising income and disposable income levels and a constant improvement of living standards of Chinese people have resulted in modernized, busier lifestyles, which is one of the primary drivers of the increase in demand for energy drinks.

The battleground of the energy drinks market in China:

• Red Bull leads, but domestic brands like Dongpeng Beverage and Hi-Tiger are rising, targeting lower-tier cities with affordable pricing (RMB 3-4 per can).
• Students, blue-collar workers, and professionals consume energy drinks for work, study, fitness, and social occasions like gaming and travel.
• Brands are adapting with low-calorie, sugar-free, and functional options (e.g., Red Bull Sugar-Free) to meet health-conscious demands.
• Partnerships with e-sports (e.g., Monster Energy x Honor of Kings)  drive demand among younger urban consumers.

This article Energy drinks market in China: Red Bull leads whilst local brands are catching up is the first one to appear on Daxue Consulting - Market Research and Consulting China.

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How theme parks have developed in China

The development of theme parks in China can be divided into three phases: inception, proliferation, and transformation.

The inception stage, from 1989 to 1995, started with the establishment of China’s first theme park, Splendid China. This park sparked initial interest, attracting consumers and encouraging the development of other theme parks. Early theme parks focused on miniature cultural landscapes and performances, such as Window of the World Shenzhen, which features iconic landmarks from China and the world and historical sites.

From 1996 to 2015, theme parks experienced the proliferation stage. Many theme parks developed, focusing on differentiation and diversification through the incorporation of Intellectual Property (IP).

In 2016, the theme parks entered the transformation stage and competition intensified. International parks, such as Shanghai Disneyland in 2016 and Beijing Universal Studios in 2021, opened. They quickly gain attention for their strong IP resources, immersive and technological experiences, and integration with surrounding industries, such as dining, hotels, animations, and video games.

International theme parks are industry leaders

Shanghai Disneyland remains the top theme park in China. Despite its late entry, its strong story and immersive experience is unparalleled compared to those of local theme parks. It continuously introduces new attractions and consistently delivers high-quality experiences, from rides, parades, themed dining options, and marathons.

Successful localization to the Chinese market

Many international theme parks have localized successfully to the Chinese market. A notable example is Disneyland and its iconic castle. Unlike other Disney parks that dedicate a castle to a single process, Shanghai Disney’s Enchanted Storybook Castle represents all Disney princesses, which allows its to appeal to a broader audience, especially for audiences less familiar with princesses than those in the West. Moreover, it offers a wide range of cuisines, from Western to Chinese food inspired by Disney characters. With increasing health awareness, there are more tasty and healthy options.

Capitalizing on strong IPs that do resonate with Chinese consumers

International theme parks in China capitalize on their globally recognized IPs, though not all of them are introduced. For example, they did not open a theme land inspired by Star Wars and India Jones because they are not popular in China. Zootopia, on the other hand, has been well received in China. In response, in December 2023, Disneyland opened the first Zootopia-themed land in Shanghai.

According to Walt Disney Company CEO Bob Iger at the opening ceremony, they chose Zootopia because of its “enduring popularity.” The animated film, which was released in theaters in 2016, became the highest grossing animation in China at the time. Its popularity is evident in the theme park’s visitors trends. According to Shanghai Disneyland’s 2024 report, 97% of surveyed guests were aware of Zootopia-themed land before arriving and 33% of them said it was a key reason for their visit.

Additionally, with the sequel expected to premiere in November 2025, it is expected to have return visits to Shanghai Disneyland.

Local theme parks leveraging their own or foreign IPs

While local theme parks’ IPs are not as strong as the international ones, they are slowly narrowing the gap by developing their own IPs, licensing globally recognized ones, or engaging in joint ventures with foreign brands. For example, Fantawild’s Boonie Bears and Chimelong’s Panda Triplets have become widely recognized characters. Moreover, Jinjing Amusement Park announced the signing of a joint venture framework agreement with Warner Bros. Discovery to co-develop Harry Potter Studio Tour, the first in China and the third in the world. The studio tour, covering about 53,000 square meters and taking about half a day to take a full tour, will provide an immersive behind-the-scenes experience of Harry Potter.

Theme parks target a broader audience beyond families and young adults

Families and young adults remain the main consumer groups for theme parks in China. However, niche groups, particularly the elderly and solo travelers, are emerging.

Shanghai Disney Resort reported that in 2023, compared to 2019, the number of senior visitors purchasing one-day and two-day tickets increased by 75%.

On Baidu Baijiahao, solo visitors have shared their experiences at Shanghai Disney. Overall, they express positive sentiment, as there are many things they can do, such as taking photos, enjoying fireworks, and doing what they want instead of having to discuss plans with someone else. They can also sometimes take the single rider lines, speeding up their wait time.

Visiting theme parks as part of their “urban travel” (城市旅行)

As young Chinese consumers seek to reconnect with the cities they live in, they engage in citywalk, visits to theme parks, and other city-related experiences. According to a 2024 theme park development report, the annual pass holders visited Shanghai Disneyland 12 times per year on average, suggesting that theme parks have become lifestyle destinations. This is possible because Disney continues to offer fresh and limited-time experiences.

Theme parks in China: a playground, a travel hotspot, and a place to unwind

• China has the second largest theme parks market in the world, with 130 million visitors in 2023. As China’s traveler market grows and theme marks develop stronger IPs and fresh experiences, it is expected to continue growing.
• Foreign brands like Disney remain the top of mind for Chinese consumers due to their strong localization efforts, IP characters, and storytelling.
• Local parks have struggled to develop strong IPs. However, they are turning to develop IP characters that resonate with Chinese culture or leverage globally renowned IPs.
• Solo travelers and seniors in China are emerging niche groups.

This article How Disney has been able to outperform local theme parks in China is the first one to appear on Daxue Consulting - Market Research and Consulting China.

In the United States, the Trump administration announced on February 1st, 2025, that it would revoke the de minimis exemption, which had allowed Shein to import products from China and sell them at low prices. Although the exemption was temporarily paused on February 7th due to implementation issues, it is likely to be reinstated. This poses challenges for Shein, urging the company to diversify its markets and manufacturing hubs to ultimately “make the beauty of fashion accessible to all.”

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For Westerners, the app’s obsession seems to have appeared out of nowhere. However, this type of explosive growth is increasingly common among new Chinese companies that prioritize revenue and growth before profits.

What is Shein?

Founded in 2008, Shein is a B2C Chinese online clothing and accessories retailer selling globally, but not in China. It offers women’s clothing for all occasions and sizes, with additional categories for men, children, and also home life products. With a global warehouse network that allows it to ship to over 220 countries and regions worldwide, the Singapore-based e-commerce is one of the fastest-growing fast fashion brands.

What is the secret behind Shein’s business model?

Shein’s business model is all in its Chinese DNA. Its true advantage is “real-time fashion”, a business model that takes the “fast-fashion” model to its extreme by identifying fashion trends quickly and minimizing manufacturing cycles.

To shorten the time it takes to identify trends, design, manufacture, and ship, Shein uses an in-house design team and comprehensive analysis of fashion trend data. With this, this Chinese company can design, prototype, and ship products substantially faster than its fast fashion competitors. In 2020, it introduced 150,000 new items, averaging over 10,000 per month, surpassing Zara’s annual volume in just one to two months.

The Chinese e-commerce offers similar dresses as other fast fashion brands at half the price, with more diverse styles, varied colors, and patterns. The brand’s mission is to make fashion accessible to all consumers, irrespective of their economic status.

Inside Shein’s successful marketing strategy

Its curated collections, meticulously selected by its team of stylists, offer a catalog with user-friendly navigation. The products are categorized based on gender, body type, promotions, fashion trends, seasonal collections, and styles for a seamless shopping experience. With a vast product range and frequent catalog updates, the app appeals to young, price-conscious consumers seeking trendy selections rather than a lasting wardrobe.

1. Targeting Gen Z consumers

Shein’s main target audience is price-driven customers who love online shopping from all over the world. It sees frequent purchases from Gen Z consumers, predominantly women, as well as parents with children aged 1 to 15 years old.

Therefore, Shein aims to desirable, unique, and socially acceptable for young people. It provides an omnichannel experience with its website, app, and social media, as well as a wide network of fashion influencers. Compared to other generations, Generation Z relies more on social media and targeted mobile advertising to discover fashion brands.

Moreover, it collaborates with Western celebrities adored by young people, including but not limited to Katy Perry, Lil Nas X, Rita Ora, Nick Jonas, and Hailey Bieber to further engage with its target audience. In addition to these collaborations, Shein expanded its partnerships in other segments and regions. In 2021, it collaborated with fashion brand Sarah Kes for a new spring collection and in 2022, the Chinese e-tailer collaborated with Omani celebrity and actress Buthaina Al Raisi.

2. Micro-influencer marketing strategy

Partnering with micro-influencers, often individuals with a modest following on Instagram, YouTube, or TikTok, the fashion retailer has established a unique collaboration approach. In exchange for their posts, these influencers receive complimentary product deliveries every month. Some of them can also get up to 10 to 20% commission from the app’s referral sales. This referral strategy is indeed effective, as it helps to spread awareness about the brand.

2.1 Shein’s presence on TikTok

It has created armies of fashion bloggers supporting the brand with haul videos of their purchases under the hashtag “#shein”. Shopping purchases are driven by a constant stream of coupons and discount codes. Influencers get free merchandise every month for their posts on TikTok. Others earn commissions on sales directed to Shein.com, above the average affiliate rates that other small stores cannot compete with. Many bloggers, influencers, and YouTubers alike enjoy working with this platform due to the flat rate per video profit made rather than a “brand exclusivity” contract. This creates an easy and convenient working experience for both parties.

2.2. Shein’s marketing strategy on YouTube

The e-tailing platform has created an environment that allows shoppers to feel smart and savvy to find the perfect outfit in style. The sheer range of items sold through the store and the fact that not everything is always in stock create a somewhat gamified experience. Customers are happy to film themselves unpacking their clothes to try them on and show how they found these inexpensive goods. Sometimes, these products may not be the right size or look cheaper than they appear to be on the Internet, but this risk adds to the fun of a customer’s experience.

Moreover, the app offers customers the opportunity to join its affiliate program. Participants can earn commissions by promoting Shein on social media, where followers place orders through referral links. This program includes options like the Shein Official Affiliate and Partner Affiliate Platforms.

3. No permanent stores but pop-up stores to transform digital focus into in-person engagement

Even though it has no permanent brick-and-mortar stores, Shein has opened pop-up stores in many cities since 2018, such as Las Vegas, Milan, and Seoul. It has also opened a permanent brick-and-mortar space in Japan, where people can make scan the QR codes on the tags and get their products to delivered.

In 2023, Maxine Silva, senior director of brand PR, told Chain Store Age that Shein doesn’t intend to open permanent stores for the moment. However, as a global online retailer, they aim to target cities with a high concentration of online shoppers, offering customers a unique and enjoyable in-person shopping experience. In line with the company’s digital focus, their temporary stores feature social-friendly spots for customers to capture Instagram-worthy photos while shopping.

Shein, Amazon, and Temu: similarities and differences of the three e-tailing giants

Currently, Amazon, Shein, and Temu are three key players in the global e-commerce landscape. Understanding the quirks and differences among the three platforms is key to figuring out what makes Shein stand out, especially when stacked against the more traditional Amazon and the other Chinese platform Temu.

What makes Shein different from Amazon

Amazon taught Western consumers to shop online and build their shopping habits through data collection from search optimization. This app adopted Amazon’s strategy when entering the US, competing head-to-head and asserting dominance with USD 10.3 billion in online net sales in 2022. Amazon stands out with a broader product range and established brands, compared to Shein, which adopts a budget-friendly approach. Both platforms provide flexible exchange and return policies, but Amazon’s delivery, especially with Prime, is notably faster than Shein, which may experience longer delivery times, particularly for products shipped from China. For urgent needs, consumers may prefer Amazon despite potentially higher prices.

A rising Nemesis: Temu

Unlike Amazon, which offers stable product quality, Shein and Temu require careful selection.  Initially concentrating on apparel and accessories, Shein has expanded its product range to include sewing and textile, home décor, car decoration, beauty items, small appliances, and toys. In contrast, Temu, a marketplace affiliated with Pinduoduo, offers a wide array of goods, distinguished by its budget-friendly prices, faster shipping, and a distinctive group-buying feature that allows customers to secure lower prices when purchasing items in bulk with others.

What Chinese companies can learn from the app’s success in the West

In a way, this fast fashion retailer helped test the waters for Chinese brands looking to expand abroad, to see what market strategies they can take abroad, and what won’t work. Here’s a look at what Shein’s market strategies worked in the West.

1. Agility and high responsiveness to trends

Shein’s success underscores the importance of swift adaptation to fashion trends. Prioritizing agility in the supply chain, production, and decision-making processes to quickly respond to evolving consumer preferences can provide Chinese companies abroad with a great competitive edge, especially when targeting Gen-Z.

2. Diverse and affordable offerings

Drawing inspiration from Taobao, Shein offers lower prices than any Western fast fashion brand. The brand’s ability to produce large quantities of each item in bulk further reduces costs, facilitating its swift growth.

3. Hunger marketing

The e-tailing platform’s mastery of hunger marketing tactics is evident through its frequent catalog updates, flash sales, and exclusive discount codes. The brand’s IP collaborations and pop-up stores further fuel consumer anticipation, emphasizing the effectiveness of scarcity and exclusivity in driving sales.

4. Omnichannel and social media presence

Shein has a large social media presence, 34.5 million followers on Instagram and 9.9 million followers on TikTok as of February 2025. It regularly uploads content, facilitating product discovery and audience engagement. Their robust digital presence, intertwined with influencer marketing targeting younger shoppers, strengthens the brand’s reputation through clothing hauls and reviews.

5. Micro-influencer marketing

This app’s strategy mirrors KOC marketing in China, fostering mutually beneficial partnerships. This approach exposes the brand to new audiences through fashion-forward clothing, offering smaller influencers free clothes in exchange for opinions and social media exposure. Leveraging lesser-known influencers minimizes marketing costs and adds credibility, as smaller influencers are often perceived as more relatable.

What to avoid when going abroad

Despite its success in the global market, it is not without controversies. One issue involves imperfectly implemented body positivity, where heavily photoshopped images contradict the brand’s inclusive stance.

Shein has also faced criticism for poor social responsibility, with allegations of unsustainable practices, poor working conditions, and data breaches.

Cultural insensitivity, excessive ads, and notifications contribute to negative user experiences.

Additionally, the fast fashion retailer is entangled in numerous lawsuits for design theft and copyright infringement, raising ethical concerns despite its substantial valuation.

How revoking the de minimis exemption can affect Shein

On February 1^st, 2025, the Trump administration revoked the de minimis exemption, which allowed imports under USD 800 to enter the U.S. duty-free and with minimal inspections. It also announced an additional 10% tariff on Chinese imports. However, the sudden announcement left custom officials, postal services, and companies unprepared. Therefore, soon on February 7^th, the Trump administration paused the policy change to develop a more structured and feasible implementation plan.

If the de minimis exemption is removed, it can significant challenges to Shein, which has relied on the policy to import products from China and sell them at a cheap price. This change may lead them to raise their prices, potentially weakening its competitive edge as an affordable e-commerce fast fashion brand. Additionally, Shein may face supply chain and logistics challenges, including product delays.

To reduce its reliance on the U.S. market as its main audience and China as the main manufacturing hub, Shein has been diversifying its audience and manufacturing centers to provide its global consumers with more locally made products.

Shein’s marketing strategy: how the Chinese fast-fashion brand is conquering the West

• Shein is a Chinese B2C fast fashion e-commerce giant targeting women, Gen Z consumers, and young parents worldwide in over 150 countries. Its success lies in its “real-time fashion” business model, emphasizing rapid trend identification, in-house design teams, and quick manufacturing cycles, enabling the release new pieces daily.
• The e-commerce targets Gen Z consumers globally through an omnichannel approach, collaborating with Western celebrities, employing micro-influencers on platforms like TikTok and YouTube, and offering an affiliate program for user-generated content promotion.
• Despite being an online retailer, the app engages consumers through pop-up stores in various cities, enhancing the in-person shopping experience and aligning with its digital focus.
• Shein’s success proves that some marketing tactics used in China are also effective in the West. The utilization of strategies like micro-influencer marketing, frequent discounts, and low pricing inspired by Chinese platforms like Taobao, along with a strong social media presence, has been particularly fruitful.
• The global expansion also highlights the crucial significance of steering clear of controversies tied to body positivity, social responsibility, cultural insensitivity, and legal issues.
• In the U.S., Shein faces a significant obstacle: the potential end of the de minimis exemption, which has allowed it to bypass duties and inspections. Therefore, it continues to reduce its reliance on the U.S. as its main market and China as its main manufacturing hub.

This article Shein’s marketing strategy: From a U.S.-China focus to global expansion is the first one to appear on Daxue Consulting - Market Research and Consulting China.

National Medical Products Administration’s (NMPA) central role in medical device oversight

The National Medical Products Administration (NMPA) is at the heart of China’s medical device regulations. It sets national standards, ensures safety through post-market surveillance, and manages the registration and approval process for all medical devices. The NMPA’s approach includes stringent compliance requirements and continuous monitoring of adverse events. This ensures that both domestically produced and imported devices meet the highest safety and quality standards.

Pre-market approval: The gateway to China’s market

One of the NMPA’s key responsibilities is overseeing the pre-market approval process, which serves as the gateway to China’s medical device market. The NMPA’s regulatory framework sets strict standards for medical device safety and efficacy, ensuring compliance through a structured approval process, ongoing post-market surveillance, and clinical trials when necessary.

In 2018, the NMPA underwent significant reforms when China restructured the former China Food and Drug Administration (CFDA) into the NMPA. These reforms introduced stricter clinical trial requirements and other changes to the medical device approval process. As companies adjusted to these new regulations, there was likely a temporary slowdown in approvals, resulting in the dip in registration numbers observed that year.

Medical devices must undergo a registration process before entering the Chinese market. This involves submitting detailed documentation, including technical requirements, testing data, and – if applicable – clinical trial results. The Measures for the Registration and Filing of Medical Devices classify devices into three risk-based categories:

Clinical trials are often required for Class II and III devices to confirm safety and efficacy. Clinical trials must begin within three years of approval. After five years, manufacturers must apply for renewal to continue marketing the device in China. NMPA’s guidelines ensure all trials meet ethical standards and receive informed consent. Moreover, documentation must be in Chinese, with foreign language materials accompanied by original texts. Foreign manufacturers must appoint a domestic Chinese corporate legal entity to act as their agent for handling the registration and record-filing of medical devices.

Post-market surveillance: Ensuring safety every step of the way

Once approved, devices undergo post-market surveillance to maintain their safety and efficacy. The Regulations on the Supervision and Administration of Medical Devices mandate continuous performance monitoring, adverse event reporting, annual risk evaluations, recalls, and random inspections. Manufacturers bear full responsibility for ensuring their products remain safe and effective throughout their lifecycle, enforcing China’s high standards for medical device quality.

Accelerating innovation: China’s fast-track approval for medical devices

China’s medical device regulations offer fast-track approval processes for companies operating in strategic sectors, particularly for innovative and high-impact medical devices. These special pathways prioritize advancements in medical technology, focusing on areas such as rare diseases, malignant tumors, elderly and child health conditions, brain-machine interfaces, radiation therapy devices, and AI-assisted diagnostics. However, not all medical devices qualify for fast-track approvals, highlighting the selective nature of these initiatives.

Moreover, the Special Review Procedure for Innovative Medical Devices, introduced by the NMPA, accelerates the approval of groundbreaking products that meet certain international standards and possess significant clinical value. Specifically, the NMPA refers to international standards of efficacy and safety, such as the ones from the ISO and FDA – especially when reviewing imported medical devices, while ensuring those devices meet domestic regulatory criteria to address specific local health needs in China. For devices undergoing clinical trials to treat serious, life-threatening diseases without existing effective treatments, patients at clinical trial institutions may access these devices free of charge, and the safety data from the trials can contribute to the product’s registration application.

In addition, the Priority Approval Procedure for Medical Devices is also available for certain high-impact devices, including those designed for rare diseases, malignant tumors, and conditions commonly affecting the elderly and children.

Expanding access: Prioritizing high-impact medical device approvals

By 2024, the NMPA approved a total of 315 innovative medical devices (of which 250 devices were approved from 2014-2023), including the nation’s first proton therapy system and carbon ion therapy system, and domestically produced devices such as brain pacemakers, surgical robots, AI-assisted diagnostic software, and artificial hearts. The average evaluation and approval time for innovative medical devices has significantly improved by 83 days.  

From 2014 to 2023, the largest share (78.4%) of approved innovative medical devices originated from Beijing, Shanghai, Guangdong, Jiangsu, and Zhejiang. This regional concentration can be attributed to these provinces’ dense clusters of medical manufacturers, research institutes, and favorable policies to streamline approval processes.

Additionally, the General Office of the State Council has recently declared a stronger focus on accelerating the approval and market entry of advanced medical equipment, including brain-machine interfaces, radiation therapy equipment, and novel Traditional Chinese Medicine (TCM) diagnostic and treatment tools. In some cases, clinical trial requirements may even be waived for devices targeting rare diseases to reduce time to market.

Game-changing shifts in medical device regulations

The new Medical Devices Administration Law marked a pivotal shift in the industry. The law that is expected to be enacted in second-half 2025 serves quadruple objectives. It aims to foster innovation and performance, promote localization of the medical devices industry, improve industry practices, and increase NMPA’s efficiency.

Among the key provisions is the streamlined process for Market Authorization (MA) of innovative devices, which could open new doors for manufacturers. In addition to this, Article 55 mandates that licensed medical device manufacturers commit to permanent innovation and robust risk management measures. Furthermore, the operational dynamics will undergo significant changes, as multiple articles establish joint and separate responsibilities among the MA holder, the Regulatory Agent (now referred to as the Domestic Responsible Person), and the Distributor.

The most intriguing change is the transferability of MA registration certificates between companies which allow certificates to be bought or sold between companies. This will be a game-changing move that could promote innovation through shortened R&D cycle, lower manufacturing costs, and create new possibilities in medical device innovation. These imminent shifts could reshape the competitive dynamics of the medical device market for both local and international manufacturers.

Made in China 2025: Building local champions

As part of the broader Made in China 2025 strategy, China’s medical device regulations have identified high-performance equipment as a priority industry. The initiative aims to increase the domestic production of high-performance medical equipment and reduce reliance on foreign brands, with a focus on high-performance diagnostic and therapeutic equipment. For instance, imaging devices and medical robots, high-value consumables like fully biodegradable vascular stents, and mobile medical products, including wearable devices and remote diagnostic solutions.

Furthermore, the policy also aimed to encourage breakthroughs and applications in emerging technologies, such as 3D bioprinting and induced pluripotent stem cells. Key targets include achieving a 70% market share of domestically made mid-to-high-end devices in county-level hospitals and ensuring that 80% of core components come from local manufacturers.

Bridging access through digital health coverage and reimbursement

China’s government is steadily expanding insurance coverage for digital health devices. For example, wearable health monitors and AI-assisted diagnostic and treatment tools are now more accessible under the national health insurance system.

In 2020, the National Healthcare Security Administration (NHSA) emphasized equal insurance treatment for online and offline medical services. This parity simplifies reimbursement procedures and encourages the integration of advanced technologies. For instance, Jiangsu province incorporated cutting-edge diagnostic tools and digital health technologies into its provincial reimbursement catalog.

Data protection: Trust built on security

China’s medical device regulations are tightly interwoven with its strict data protection regulations. The Personal Information Protection Law (PIPL) is a cornerstone, categorizing medical health data as sensitive and requiring processing only under specific, necessary conditions. Additionally, the Data Security Law mandates localized storage for critical data and necessitates security evaluations for cross-border transfers.

Under the Cybersecurity Law, Critical Information Infrastructure (CII) encompasses industries critical to national security and public health, including healthcare, with medical devices categorized as a key component due to their role in public services. Operators who violate the regulations governing CII may face penalties of up to RMB 1 million for entities and up to RMB 100,000 for responsible personnel. Data handlers who are not part of CII must adhere to the cross-border data transfer regulations issued by the Cyberspace Administration of China (CAC) and other governments.

Recent developments in China’s medical device regulations

• The NMPA oversees China’s medical device regulations, setting national standards, managing registration processes, ensuring compliance, and conducting rigorous post-market monitoring.
• Medical devices undergo a structured registration process, including clinical trials for higher-risk devices, to ensure safety and efficacy. Post-market measures such as adverse event reporting, random inspections, and recalls maintain long-term device quality.
• Accelerated pathways prioritize innovative devices addressing rare diseases, critical conditions, and unmet medical needs to reduce evaluation and approval times.
• The Made in China 2025 initiative promotes domestic manufacturing of high-performance medical equipment, with key focus areas such as 3D bioprinting and AI tools.
• National health insurance policies increasingly incorporate advanced medical devices, including digital health tools, to promote equitable access and reimbursement for online and offline services.
• Stringent laws like the PIPL and Data Security Law safeguard sensitive health data, enforce local data storage, and regulate cross-border data transfers to ensure trust and compliance.

This article A roadmap to China’s medical device regulations and innovations is the first one to appear on Daxue Consulting - Market Research and Consulting China.