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A demographic turning point that is impossible to ignore

As of 2023, around 254 million people in China were aged 60 or above. This accounted for roughly 20% of the population. According to the World Health Organization and the United Nations, this figure is projected to reach 402 million by 2040, or 28% of the population.

Moreover, for the past two decades, life expectancy in China has climbed steadily and now surpasses the global average. At the same time, persistently low fertility rates mean that population aging is becoming structural. Within just 30 years, the number of people aged 60 and above has more than doubled, and projections indicate it could reach 504 million by 2050. This underscores the urgency for both public and private sectors to adapt.

Aging is uneven: Why geography matters in the silver economy in China

China’s aging process is not uniform across the nation. Significant regional disparities exist due to differences in economic development, internal migration, and historical birth rates. Northeast China, particularly Liaoning, Jilin, and Heilongjiang, has the highest concentration of elderly residents. Seniors account for more than a quarter of the population in several provinces. This is largely the result of youth outmigration following industrial decline. As a result, they left behind aging communities with shrinking workforces.

These demographic realities place severe strain on local healthcare systems, pension funds, and labour markets. However, they also act as early testing grounds for the silver economy in China. In high-aging regions, companies are already adjusting product offerings and service models to meet seniors’ needs. Marketing strategies in these provinces tend to emphasise trust, comfort, and tangible health benefits, while distribution relies more heavily on channels that are accessible and familiar to older adults. In many ways, these regions foreshadow what other parts of China will face in the coming decade.

Not one elderly generation, but three

A defining characteristic of the silver economy in China is its generational complexity. Today’s seniors are not a homogeneous group. They span three distinct cohorts shaped by very different historical experiences.

The oldest cohort, born before 1950, has their consumption today primarily driven by caregiving and health maintenance. This is because physical decline becomes more pronounced. This group tends to be cautious, risk-averse, and function-focused in its spending.

The second cohort, born between 1951 and 1963, experienced hardship in early life but also lived through reform and opening-up. Now aged in their 60s and early 70s, they are generally healthier, more adaptable, and still energetic. This group increasingly allocates spending toward leisure, wellness, and social engagement, rather than basic subsistence.

The youngest “silver” cohort, those aged roughly 50 to 60, benefited from better education and exposure to global culture. They value quality of life, are comfortable with change, and exhibit consumption patterns closer to middle-aged consumers than to traditional retirees. As they enter retirement, they are expected to become the primary growth engine of the silver economy in China.

Growth driven by spending power, not just population size

While demographic expansion sets the foundation, the true driver of the silver economy in China is changing spending behaviour. The market size of silver economy in China has grown from RMB 8 trillion in 2020 to an estimated RMB 13.9 trillion in 2024, with projections reaching RMB 17 trillion by 2025. In 2023, it already accounted for around 6% of China’s GDP.

Crucially, today’s seniors are among the wealthiest in China’s history. Many benefited from decades of economic growth, property appreciation, and high household savings rates. As a result, the prevailing stereotype of elderly consumers as overly frugal is becoming outdated. Instead, seniors are demonstrating a clear willingness to spend on products and services that deliver clear value in terms of health, comfort, or quality of life.

How Chinese seniors finance their later years

Despite rising spending, financial behaviour among older Chinese remains shaped by historical uncertainty. Most seniors rely on a mix of government pensions, personal savings, and family support. For elderly individuals living alone, pensions and transfers from children remain the two largest income sources. This structure reflects long-standing cultural norms as well as institutional realities.

China’s household savings rate, around 43% in 2024, far higher than in Europe (15%), also plays a key role. A large share of these savings is earmarked for retirement or intergenerational support, such as children’s education or housing. Meanwhile, the state continues to expand pension coverage and reform healthcare systems to reduce out-of-pocket expenses, gradually easing financial pressure on both seniors and their families.

For businesses, this means that senior consumers are not indiscriminate spenders. They tend to favour high-value, functional products and remain sensitive to pricing, often taking time to compare options. Winning in the silver economy in China requires a balance between perceived quality, trust, and affordability.

From survival to self-image: a shift in senior consumption values

One of the most striking developments is how senior lifestyles and values are evolving. Chinese seniors are spending more on skincare, clothing, haircuts, health examinations, and healthier food. Sometimes at levels comparable to, or even exceeding, those of younger consumers.

Health remains the top priority, with a significant share of disposable income channelled toward preventive care and longevity. However, this is increasingly accompanied by spending aimed at maintaining social presence and self-identity. Many seniors actively invest in “aging gracefully,” challenging traditional notions that equate old age with withdrawal or austerity.

Importantly, this is not reckless consumption. Seniors are strategic buyers: more price-conscious than younger cohorts, yet willing to spend time and effort searching for value. Their growing digital literacy further supports this behaviour, enabling comparison shopping and informed decision-making.

The erosion of traditional family care models

Structural changes in family life are reshaping demand patterns within the silver economy in China. Urbanisation, smaller households, and rural-to-urban migration have led to a sharp rise in so-called “empty-nest” households. Today, nearly 60% of elderly Chinese live either alone or only with their spouse, and around 40 million seniors live entirely alone.

This shift weakens the traditional model of family-based elderly care and raises concerns about access, equity, and social isolation, especially in rural areas. As a result, demand for professional care services, community-based solutions, and technology-enabled support is increasing rapidly. For policymakers, this necessitates government-society collaboration. For businesses, it opens new service categories that were previously marginal or non-existent.

Policy as a market shaper: the “9073” model

Government policy plays a central role in structuring the silver economy in China. Under the “Healthy China 2030” initiative, authorities aim to raise life expectancy to 79 years while building a sustainable elderly care system. A key pillar is the “9073” care model, under which 90% of seniors age at home, 7% rely on community-based care, and only 3% live in institutional facilities such as nursing homes.

This policy direction has profound implications. Rather than prioritising large-scale nursing institutions, the government is actively encouraging at-home care, community services, and public-private partnerships. For companies, alignment with this model, either through home-care services, age-friendly housing solutions, or decentralised healthcare, significantly improves policy compatibility and long-term viability.

Structural opportunity in China’s silver economy

Taken together, the silver economy in China is not a short-term trend driven solely by demographics. It is a structural transformation, rooted in longer lives, generational change, evolving family systems, and supportive public policy.

As seniors become healthier, wealthier, and more self-directed, they are redefining what aging means in China. For businesses and investors, the opportunity lies not in treating the elderly as a single vulnerable group, but in recognising the diversity, influence, and spending power embedded within this rapidly expanding segment. The foundations of the silver economy in China are already in place, and its most transformative phase is only just beginning.

The next frontier: Silver economy in China

• China is aging rapidly, with over 254 million people aged 60+ (20% of the population) in 2023, projected to reach 28% by 2040. This creates a massive, unavoidable market foundation.
• The “senior” group is not monolithic but spans three distinct cohorts with different values and consumption patterns. Driven by historical wealth accumulation, they are becoming a powerful consumer force focused on health, leisure, and quality of life.
• Consumption is evolving beyond basic needs. Seniors are increasingly spending on skincare, fashionable clothing, and wellness to maintain social presence and self-identity, while remaining strategic and value-conscious buyers.
• Urbanization and smaller households have led to nearly 60% of seniors living alone or with only a spouse. This breakdown of traditional family care models is driving demand for professional services, community solutions, and tech-enabled support.
• Government strategy, notably the “9073” model (90% home-based, 7% community, 3% institutional care), actively shapes the economy. This policy prioritizes home- and community-based solutions, creating aligned opportunities in related services and products.

This article Structural shift in consumption: The rise of the silver economy in China is the first one to appear on Daxue Consulting - Market Research and Consulting China.

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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 closure.

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, and 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 between 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 to 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 48,000 stores in China and nearly 5,000 stores outside of China.

Mixue Group has an extensive presence in lower-tier cities

In China, the Group focuses on emerging-tier cities. Henan, Guangdong, and Jiangsu have become key focus markets for Mixue due to their geographic advantages and urban structure:

• Henan: Home to Mixue’s headquarters, Henan is centrally located in China, making it highly convenient for nationwide expansion.
• Jiangsu: With a stable economy and relatively strong purchasing power in third- and fourth-tier cities, Jiangsu also serves as a strategic base to reach other cities and provinces in southeastern China.
• Guangdong: Similar to Jiangsu in terms of population structure and consumption level, but with a hotter climate that drives higher consumption frequency.

The Group has succeeded 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 such as Shuyi, Auntea Jenny, Good Me, and Cha Panda who focus on first-tier and second-tier cities.

Mixue expands into emerging and developed overseas markets

With competition intensifying 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 overseas revenue. It also has a 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 fee, 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.

Outside of China, Mixue has another franchise model. In emerging overseas markets like Southeast Asia, it partners with powerful local distributors who are familiar with the market, resources, and channels, allowing Mixue to quickly replicate its model abroad – overcoming barriers in logistics, regulations, and cultural differences to achieve rapid market penetration.

In developed overseas markets, such as Japan and South Korea, it has another approach. Given the fierce market competition and differing consumer preferences, it may avoid its dense domestic strategy, opting instead for flexible models and stronger local partnerships focused on product adaptation and brand localization.

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 elements 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 a sense of 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 global beverage giant

• Mixue Group is the world’s largest fast-food chain by store count, surpassing McDonald’s, Starbucks, and Subway. As of June 2025, it has over 48,000 stores in China and over 4,700 stores abroad.
• Unlike its competitors like Cha Panda and Auntea Jenny, it focuses on China’s emerging-tier city markets.
• 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 investment required is about RMB 210,000, which is lower than its competitors. In 2012, it started building its centralized factories, producing 60% of its ingredients in-house.
• 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 to higher-tier cities.

This article How Chinese beverage brand Mixue successfully scales across emerging-tier cities is the first one to appear on Daxue Consulting - Market Research and Consulting China.

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The three major players in China’s food delivery market: Meituan, Taobao Flash Buy, and JD

Takeout food in China began with foreign fast-food chains like McDonald’s, known as McDelivery (麦乐送) in the 1990s, followed by local eateries. Homegrown local restaurants followed suit then. The real surge came with the rise of online food delivery platforms, marking the rapid growth of China’s O2O delivery market.

China’s food delivery market is dominated by Chinese tech giants Alibaba and Tencent, who own 淘宝闪购/饿了么 (Ele.me) and 美团 (Meituan) respectively. In 2025, these two delivery apps controlled 90% of the country’s food delivery market. Due to the significant market share, it is not a surprise that there is a high barrier to entry into the food delivery industry in China. However, JD.com, another major e-commerce platform, entered the food delivery and local services market in 2025. Liu Qiangdong, the founder and chairman of JD, personally delivered a few meal orders as a publicity stunt for the new service.

Who are China’s food delivery industry’s consumers?

China’s food delivery services have witnessed remarkable growth, surging by approximately 371% from 2015 to June 2023. In 2015, there were just 113.6 million users of food delivery services in China. However, by June 2023, this figure had skyrocketed to an astonishing 534.88 million, showcasing the rapid adoption of delivery platforms in the country.

Online food delivery service users primarily consist of white-collar workers and skew toward the younger demographic

China’s online food delivery user base underwent a significant transformation. In 2015, 63% of users were white-collar workers, and 30.5% were students. By 2019, this shifted dramatically, with 83% being white-collar workers and only 10% students, illustrating a notable change in the industry’s consumer demographic.

Additionally, women constitute 51% of food delivery app users, and a substantial 85% of users fall between the ages of 18 and 40, indicating a predominantly young customer base. Particularly noteworthy is the nearly 20% increase in online food delivery orders from individuals born in the 2000s in 2021, underscoring their growing importance as a customer segment.

Top-tier cities are the main customers of China’s food delivery services

While more than half of Chinese online food delivery users, accounting for 53.9%, reside in top-tier cities (1^st and 2^nd tier) as of 2021, the real growth and potential are found in lower-tier cities. This is primarily due to the already high penetration of online food delivery services in top-tier cities, leaving room for smaller cities to flourish. Yet, according to Meituan’s April 2023 report, Shenzhen, Beijing, and Shanghai still stood out as cities with the highest vitality in online food delivery. This was supported by factors like delivery volume, user activity, restaurant delivery rates, and operating hours.

Convenience meets affordability: The reasons behind the popularity of food delivery in China

Food delivery services are exceptionally popular in China, surpassing their Western counterparts. There are several reasons to explain the disparity, such as the low cost and convenience of food delivery in the increasingly busy urban lifestyles in China.

Dining deals are due to high competition in China’s food delivery market

Chinese consumers are highly price-sensitive. In Greater China, food delivery costs are significantly lower, equaling just 10 to 20% of US prices, thanks to intense competition among providers like Ele.me and Meituan. The fierce market competition has led to aggressive price wars, with customers frequently enjoying generous discounts and coupons. These discounts, coupled with economies of scale, have made online food orders substantially more affordable than dining out. While the coupons are not as substantial as before, this strategy has transformed the dining habits of millions, making food delivery an exceptionally attractive and budget-friendly choice for the Chinese population.

Food delivery in China is widely embraced for its time-saving convenience

China has a demanding work culture, exemplified by the pervasive “996” schedule.

Additionally, a rising phenomenon known as “lazy cancer (懒癌)” reflects a prevalent sense of laziness that has diminished the appeal of cooking meals from scratch. About 67% of the 7,220 Chinese food delivery users surveyed cited laziness as the reason for ordering instead of dining out, as per a survey in March 2020.

Short video platforms entered the food delivery market

Kuaishou and Douyin, which are prominent short video platforms in China, are making a foray into the food delivery sector. These services were done by integrating ordering functions into their apps. Unlike traditional delivery services, these platforms do not manage logistics directly. Instead, merchants handle deliveries while the platforms drive traffic to their pages.

Short video platforms collaborate with established logistics players in order to facilitate operations. Kuaishou has partnered with Meituan, utilizing its logistics network, whereas Douyin collaborates with SF Express and Dada. Despite entering the market later, both platforms are leveraging their vast user bases to challenge established players like Meituan and Ele.me.

Kuaishou aims to enhance local services and revenue, while Douyin is striving to meet its 2023 GMV targets, having faced difficulties in this area. For both, food delivery represents a crucial opportunity for revenue diversification and growth, positioning them as new competitors to the sector’s main players.

2025 Food delivery war in China

In 2025, China’s online retail giants, Alibaba (through Taobao Instant Commerce & Eleme), and JD.com, engaged in a high-stakes price war in the food delivery market. The conflict brought heavily subsidized food deliveries that reshaped both the food & beverage and food delivery markets. It eventually drew direct government intervention.

The core trigger was JD’s aggressive market entry, which directly challenged the food delivery duopoly’s dominance. However, the deeper cause was a strategic battle beyond food delivery itself. The platforms were fighting to become the indispensable “everyday app” for Chinese consumers, using low-margin food delivery as a critical gateway to capture users for their broader retail, grocery, and local services, such as 30-minute delivery.

Immediate impact: Billions in losses and market turmoil

The subsidy war led to staggering financial losses. Combined, the giants spent over RMB 100 billion (approx. USD14 billion) on consumer discounts in 2025. Meituan posted its first quarterly loss in three years, while Alibaba’s profits plunged. Investors grew wary, and share prices fell. While consumers enjoyed steep discounts initially, merchants suffered. Many F&B operators reported squeezed profits and operational chaos from unpredictable, high-volume orders.

Regulation and unsustainable models

The war had two major implications. First, it prompted direct regulatory intervention. Chinese authorities summoned the companies, condemning the “irrational competition” and forcing a truce by mid-year, signaling a clear stance against market-distorting subsidies. Second, it exposed the limits of a pure subsidy-driven growth model. The “race-to-the-bottom” was proven financially unsustainable for even the largest tech firms, forcing a strategic re-evaluation towards healthier, service-oriented competition. The episode served as a cautionary tale on the perils of unchecked competition in China’s digital economy.

The future of China’s food delivery industry: A growing online grocery segment

Despite having gone from prosperity to decline in terms of its performance in the financing market in the late 10s, China’s grocery delivery industry is reaping the benefits of the stay-at-home economy that the COVID-19 pandemic has stimulated in China. The pandemic has introduced older demographics into the market. For the younger demographic, online grocery platforms provide a convenient solution to their busy lives. By allowing them to order groceries online, they can save valuable time and effort, adapting to their hectic schedules. On the other hand, for the elderly, who may find it challenging to venture out for fresh products, online grocery shopping offers a lifeline.

Major players in China’s online grocery segment include Alibaba, Tencent, JD, Meituan, and Pinduoduo. These platforms bridge the accessibility gap by delivering groceries directly to their doorstep, ensuring they have access to essential items without the physical strain of traditional shopping.

Evolving competition and future shift of China’s food delivery market space

• China is the world’s largest food delivery market (RMB 1.64 trillion in 2024), serving over 550 million users. It has long been a duopoly controlled by Meituan and Alibaba’s Ele.me, creating significant barriers to entry.
• The market’s explosive growth is fueled by a young, urban, white-collar user base. Key drivers are extreme price sensitivity (enabled by heavy discounts) and the time-saving convenience it offers within China’s demanding urban work culture.
• The market’s stability was disrupted in 2025 by JD.com’s aggressive entry, challenging the duopoly. This sparked a brutal subsidy war as platforms fought to become the essential “everyday app” for consumers, using food delivery as a loss-leading gateway.
• The price war caused over RMB 100 billion in losses for the giants, hurt merchant profits, and led to direct government intervention.
• The competitive landscape is expanding with short-video platforms (Douyin, Kuaishou) entering via partnerships. The future growth focus is shifting toward the online grocery segment, leveraging the infrastructure and consumer habits built by food delivery services.

This article How a price war reshaped China’s food delivery empire is the first one to appear on Daxue Consulting - Market Research and Consulting China.

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Somaek continues to be widely enjoyed more for its experience rather than its taste

“Today I’m going to make you kimchi fried rice and somaek, my favorite drink to have while playing APT. It’s called somaek, a perfect combination of soju and beer. It just makes the beer a little more alcoholic – which we love,” said Rosé of BLACKPINK in an interview with Vogue.

Somaek (소맥), a mix of soju and beer, has long been one of the most popular combinations in Korean drinking culture. According to a survey conducted by Micromill Embrain, 69% of 1,000 office workers aged 19 to 59 said they had mixed beer with other beverages such as soju within the past three months. The main reasons cited were that mixing drinks improved the drinking atmosphere, was recommended by their drink companions, and made the alcohol tastes better.

The MZ Generation, in particular, likes to mix different drinks and find the one that best match their tastes. They like to experiment with different ratios – whether it’s a 1:1 or 1:2 soju-to-beer ratio – as well as varything strengths and flavors to find their best somaek combination. Other reasons for somaek’s popularity include practicality. It offers a stronger effect than beer alone, is cheaper than imported liquor like whiskey, and provides a budget-friendly way to get tipsy quickly.

While foreign brands dominate, foreign brands are catching up

South Korea’s beer market is highly concentrated around a few dominant brands, shaped by strong brand heritage and shifting generational preferences. However, the growing interest in new flavors, craft beer culture, and changing consumer tastes suggests there is room to challenge the current leaders.

Cass was first introduced in 1994, and Hite was introduced in 1993, both of them entering the market around the same time. Traditional brands such as Cass, Hite, and OB continue to be preferred brands with older consumers, while Terra and Kelly have gained greater popularity among younger drinkers. Hite Jinro is trying to catch up by targeting younger people with newer beers like Terra and Kelly.

Cass leads the beer sector with culturally relevant marketing

Cass has ranked first in the beer category for the third consecutive year and has held the No. 1 market share in the domestic beer industry for 13 consecutive years since 2012. According to a Gallup Korea survey conducted from March 22 to April 5, 2024, with 1,176 respondents nationwide, excluding Jeju, Cass was selected as the most preferred beer by more than half of all participants. A total of 52% of respondents chose Cass as their favorite beer brand.

One of the key drivers behind Cass’s success is its aggressive and culturally relevant marketing. Through high-visibility campaigns tied to major events like the Olympics, large-scale pop-up stores, and youth-centered festivals such as CassCool, the brand has effectively positioned itself as the “go-to” beer for energetic and social lifestyles. These experiential marketing tactics not only boost brand recognition but also build emotional engagement that competitors struggle to match.

Other local and foreign brands are challenging Cass’ dominance

Following Cass, Terra (16%), Hite (10%), OB (6%), and Kelly (4%) were selected in that order, with the top five brands accounting for 88% of all responses.

The remaining top 10 brands included Asahi (2.5%), Heineken (1.8%), Kloud (1.7%), Budweiser, and Tsingtao (each around 0.8%). International beer brands are increasingly challenging Cass’s dominance by focusing on premium positioning, leveraging celebrity-driven marketing, and rolling out differentiated product experiences. Many are using Kpop centered campaigns and experiential activations. Examples include Asahi’s collaborations with BLACKPINK and its Super Dry pop-up events. Sapporo also launched Draft Beer 70, pairing the product with premium tasting bars in hotspots like Seongsu-dong to attract younger consumers seeking novelty and quality.

Zero-alcohol drives beverages brands to rethink their product lineups

Korean drinking culture has been shifting toward healthier options, with consumers increasingly avoiding excessive drinking and the discomfort that follows. This shift has increased the rise of nonalcoholic beverages, particularly among people in their 20s and 30s. In Korea, “nonalcoholic” drinks contain less than 1% alcohol, while “alcohol-free” drinks contain less than 0.05%. To align with this change in consumer behavior, beer companies have begun expanding their nonalcoholic product lines and directing their marketing efforts toward this expanding segment.

According to Euromonitor, the domestic nonalcoholic beer market grew by 769% over the past decade, rising from KRW 8.1 billion in 2014 to KRW 70.4 billion in 2024. It is expected to expand by 1,068% by 2027 compared with 2014. With this growth and strong future projections, domestic beverage and liquor companies are actively broadening their nonalcoholic beer portfolios, suggesting continued market expansion driven by both consumer trends and competitive movement within the industry.

One example is OB Beer, which previously stated it had no intention of entering the nonalcoholic segment but recently reversed its position with the launch of Cass All Zero, a nonalcoholic beer. Cass All Zero follows a “4-No” concept, which is no alcohol, sugar, calories, or gluten, and is sold in 330 ml cans. The company is focusing on online channels for distribution. OB Beer explained, “This is a portfolio expansion to strengthen our category leadership in line with the growth of the nonalcoholic market. Zero will focus on restaurant channels, while All Zero will focus on online sales.”

South Korea’s beer market is evolving into a more diverse, consumer -driven landscape

• South Korea’s beer market is evolving from a few dominating brands to a more diverse and innovative landscape.
• Younger consumers are driving trends such as customized somaek and healthier, low- or no-alcohol options.
• Cass remains the clear market leader, but shifting tastes indicate potential opportunities for new or emerging brands.
• The nonalcoholic beer segment is rapidly expanding due to rising health consciousness.
• Major companies are adjusting their product strategies by launching new products or expanding into nonalcoholic lines to keep pace with changing consumer behavior.

This article South Korea’s beer market: From somaek culture to premiumization and zero-alcohol growth is the first one to appear on Daxue Consulting - Market Research and Consulting China.

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Today, live performances in China are increasingly diverse and are surpassing pre-pandemic volumes, reshaping domestic tourism patterns and youth culture, and redefining the nation’s experience economy.

A diverse consumer base with varying demands

China’s live performance sector is shaped by a diverse and rapidly evolving consumer base comprised primarily of Gen Z and young millennials. High consumer participation rates in fandoms and the prevalence of China’s idol economy fuel premium ticket purchases, high spending on merchandise, and repeated attendance. Younger consumers tend to gravitate towards platforms like Xiaohongshu (or Little Red Book in China) and Douyin for event discovery and social validation when creating digital content.

However, urban professionals and affluent families still represent another aspect of the consumer segment, delivering consistent demand for theater, musical, and culturally oriented performances with a focus on quality education. More traditional cultural performances such as opera tend to attract a more price-sensitive, older generation.

Live performances drive domestic tourism

The draw of popular domestic and international artists has led to an increase in concert-driven cultural tourism, with growing shares of consumers planning trips around performances. Thus, artists essentially uplift the local economies of the places that they tour. During his three-day tour in Nanning, singer Jay Chou attracted more than 140,000 attendees and generated roughly RMB 1.2 billion in revenue.

Additionally, festival culture has expanded beyond first- and second-tier cities like Beijing and Shanghai, as local governments in emerging-tier cities host festivals to boost tourism, GDP, and regional branding. By combining festivals with other experiences unique to the specific city or province, the festivals can promote the culture of the city and boost the local economy.

Types of live performances

The live performance industry in China is primarily driven by large-scale concerts and festivals, with the segment accounting for roughly RMB 29.6 billion in revenue in 2024. The number of medium and large-scale concerts and music festivals with over 2,000 participants has nearly doubled from 2019 to 2023.

Large-scale concerts dominate the market

Large-scale concerts are defined as concerts utilizing entire stadiums and arenas, featuring top-tier domestic or international artists such as Jay Chou, Mayday, TFBOYS, and Blackpink. These concerts typically boast very high production value with immersive effects such as LED lights, pyrotechnic effects, and augmented reality.

The prominence of these artists will often lead to rapid ticket sellouts within minutes or even seconds; tickets often have premium pricing tiers and options for VIP add-ons for the most devoted fans.

The explosion of the festival scene

Another driver of the prevalence of live performances in China has been a boom in the music-festival scene. Music festivals are typically multi-day, outdoor concerts featuring multiple stages and a lineup of prominent artists. These events are mainly youth-driven, with opportunities to showcase fashion on social media.

The expansion of festival culture has also led to a hybridization of genres and experiences — festivals are increasingly featuring artists from a variety of genres and are integrating other cultural elements such as art installations, yoga and meditation, and even half-marathons.

Prominent festivals include the Strawberry Music Festival, a diverse, multi-city festival often described as China’s Coachella; the MIDI music festival, considered the “godfather” of Chinese rock festivals; and the Modern Sky Festival, organized by a major independent music label featuring a wide array of artists. 

Live houses center on affordability and authenticity

“Live houses” refers to small live-music venues, which are typically intimate concert halls, clubs, or bars that host smaller, underground or indie artists, niche genres, and touring musicians. These venues typically seat anywhere from a few hundred to less than a hundred people, offering a much more personal, authentic, and immersive live-music experience compared to large-scale concerts.

As a result of being smaller and more casual than traditional large-scale concerts, live house performances tend to be higher frequency with affordable ticket prices. The smaller scale also contributes towards showcasing more localized, community-driven performances, aligning with China’s movement towards distinctive regional and cultural pride. Many of these venues were also historically associated with underground music deviating from typical mainstream artists, thus contributing to the growing alternative scene among different subcultures in China. 

While live houses elsewhere tend to be independent venues, the Chinese live house scene is seeing the rise of national chain brands such as MAO Livehouse, Modern Sky’s Taihe spaces, and Omni Space in Beijing expanding to other cities.

An example of a brand in the food and beverage industry in China is Haidilao. The hot pot brand is introducing “Hotpot Livehouse” concept stores, where it provides special late-night menus (including bullfrog and crayfish, and braised dishes), diverse craft beers, DJs, dance shows, and cocktail performances. They aim to tap into the Gen Z’s desire for emotional value, personalized social spaces, and multi-sensory nightlife through these immersive experiences.

Traditional performances are rooted in culture

The more traditional segment of live performances in China includes longstanding cultural art forms such as Peking Opera, classical Chinese music, and traditional and ethnic folk dances. The primary target of these performances is older audiences, tourists, and individuals seeking an experience rich in heritage and connection to Chinese history and identity.

Although these segments tend to grow slower than more contemporary concert and festival categories, they play an integral role in cultural preservation and tend to benefit from strong government support. Additionally, young Chinese consumers are increasingly valuing Chinese cultural heritage and prioritizing a connection with Chinese identity, as reflected by the rising prominence of the Guochao movement.

Key takeaways: Growing demand for diverse experiences

• Strong post-pandemic growth shows no sign of slowing down as consumers increasingly demand in-person cultural and entertainment experiences.
• Youth audiences are the main drivers of growth for the dominant concert and music festival sector within the live performance market. A combination of high digital engagement, fandom participation, and willingness to pay premium prices fuel rapid growth rates.
• The live performance sector in China is no longer only comprised of traditional performances. Growth is largely being generated by concerts and music festivals as opposed to the slower, steadier growth of the traditional performance sector.
• Beyond traditional concert venues, live performance spaces are becoming increasingly diversified. They include malls and commercial complexes, restaurants and themed cafes, and even cultural heritage sites and outdoor tourist zones such as Lijiang Ancient Town and Shanghai West Bund ice rink.
• Live shows are increasingly important drivers of domestic tourism, as consumers center trips around concerts and music festivals.

This article Live performances in China expand to lower-tier cities and diversify into new entertainment formats is the first one to appear on Daxue Consulting - Market Research and Consulting China.

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Key findings on China’s silver consumers:

• By 2040, China will have over 400 million citizens aged 60+. They form 28% of the population and a high-spending consumer bloc.
• Today’s retirees prioritize quality of life and are spending on travel, wellness, and leisure rather than just saving, with per capita output reaching RMB 46,333 per senior in 2024.
• 90% of seniors prefer to stay at home. This fuels demand for community-based services, meal delivery, and smart home solutions over nursing homes.
• Spending is shifting from treatment to prevention, boosting markets for functional foods, Traditional Chinese Medicine (TCM), and wearable health tech.
• Seniors are spending over 4 hours online daily. As such, platforms like Taobao are launching “Elder Mode” and dedicated shopping hotlines to capture their spending.
• Paid hobby courses and silver-haired influencers are booming, transforming community building and social connection into a premium service sector.
• The domestic silver tourism market is booming, driven by demand for slow-paced, wellness-focused group tours and nature retreats.
• Initiatives like Healthy China 2030 and the national elderly care system are creating a supportive framework for private sector growth in health and wellness markets.

This article 2026 China Silver Economy Report is the first one to appear on Daxue Consulting - Market Research and Consulting China.

This shift is part of China’s broader push to modernize its financial infrastructure, creating a more inclusive and accessible economic environment. As visa policies become more flexible and China’s payment system is more user-friendly, foreign visitors are finding it easier to adapt to China’s cashless society. This fosters smoother interactions and greater global connectivity.

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China’s mobile payment methods

According to iiMedia Research, in 2024, mobile payments were the most widely used payment method among Chinese consumers, accounting for 73.20% of transactions. Cash payments (63.46%) and physical bank card swiping (46.40%) ranked second and third, respectively, while 14.06% of consumers used smartwatches for payments. Chinese individuals widely utilize mobile payment platforms for various purposes, including settling restaurant bills, ordering food delivery, making online and offline purchases, as well as paying bills and for various services. As of June 2024, approximately 953.86 million individuals in China were actively utilizing mobile payment services.

China’s mobile payment landscape: The dominance of Alipay and WeChat Pay

In Q3 2023, Alipay and WeChat Pay recorded transaction volumes of RMB 118.19 trillion and RMB 67.81 trillion, respectively, accounting for over 94% of the total market share. UnionPay, associated with a significant state-owned card payment network, secures the third position, with 45% of respondents opting for its services.

Alipay

Alipay was launched by Alibaba Group in 2004. As of mid-year 2024, it is a prominent online payment platform with 1.43 billion users worldwide. It integrates online and offline services, offering features like instant credit, installment payments, and cash back. Many major websites use Alipay as an e-commerce payment method, such as Taobao, Amazon, JD.com, and AirAsia.

Furthermore, Alipay has gained popularity by leveraging advanced biometric technology. Its facial recognition payment option is especially popular among consumers who prefer offline transactions. This innovation enables consumers to shop without the need for a mobile phone, offering added convenience.

In late 2024, Alipay launched a new feature called “Tap to Pay” or Alipay Tap!, which is an evolved form of QR code scanning. It was made possible through NFC technology, which allows users with enabled phones to pay by simply tapping a merchant device without opening the app. Within 11 months, user numbers surpassed 100 million, with 80% preferring “Tap” when both options (QR code vs NFC payment) exist. This feature targets efficiency-seekers, seniors, and tourists who prefer simplified mobile payment processes.

WeChat

WeChat Pay is a popular digital wallet in China introduced by Tencent’s WeChat in 2011. WeChat’s success is attributed to its versatile interface. It integrates social media and mobile payment services, along with compatibility with various in-app applications such as WeChat Mini Programs. WeChat Pay extends its services in China to include a range of financial products. From investment funds to insurance, enabling users to make payments directly within the app. In 2022, around USD 400 billion in transactions were done through WeChat.

UnionPay

China UnionPay (UnionPay) ranks among the top three payment methods in China. As the exclusive domestic bank card issuer in China, UnionPay links ATMs of major and smaller banks across mainland China, functioning as an Electronic Funds Transfer at Point of Sale (EFTPOS). Unlike Alipay and WeChat Pay, UnionPay is not a digital wallet; it is the sole issuer authorized for card payments in China.

Scan, pay, go: The ubiquity of QR codes in China’s mobile payment system

In China, QR Codes are widely used for making and receiving payments. Even street musicians provide their QR codes to receive money. There are two simple ways to pay using QR Codes:

1. Customers scan the seller’s QR code, usually visible at the checkout, on restaurant tables, or on products in stores. After choosing the amount, they can send the money directly to the seller and show the confirmation to the seller.
2. Customers display their own QR codes on their smartphones. The seller selects the amount, scans the QR code, and the transaction is done. This method is faster, as it skips the extra step of transaction confirmation.

Unlike Apple Pay, which needs special equipment for sellers to receive payments, in China, a basic piece of paper with a QR code is sufficient. This simplicity and accessibility have fueled the widespread adoption of mobile payments in China, making it easy and fast for anyone with a mobile device.

How safe are mobile payments in China? Navigating the risks in mobile payment methods

China UnionPay’s report released in early 2023, reveals a reduction in unsafe user habits, dropping from an average of around 2 per user in 2021 to 1.2 in 2022. Declines are seen in behaviors like using identical passwords and scanning promotional QR codes.

Respondents demonstrate high awareness of personal information security, with less than 10% engaging in potentially unsafe bank card-related actions. Almost 50% express a willingness to report issues through the National Anti-Fraud Center app.

However, telecom fraud remains a significant concern, affecting two-thirds of respondents. Profit-return fraud, especially “part-time brushing fraud,” is prominent. Emotional fraud, targeting those under 25, persists, with both this group and those over 55 identified as high-risk demographics. The younger demographic shows lower awareness of smartphone and bank card protection. Meanwhile, the older group is vulnerable to scams involving false medicine and health products.

Frequently asked questions for foreigners regarding China’s payment methods and system

What is the latest travel visa policy?

China’s latest visa-free transit policy, effective December 17, 2024, extends the stay for eligible foreign visitors from 72 and 144 hours to 240 hours (10 days). The number of applicable entry and exit ports has increased from 39 to 60, covering 24 provinces, including newly added regions like Shanxi, Jiangxi, Anhui, Guizhou, and Hainan. In the first 11 months of 2024, China recorded 29.2 million foreign entries, an 86.2% year-on-year increase, with visa-free entries rising by 123.3%.

Can foreigners use WeChat Pay?

Foreign residents in China and tourists alike can easily open WeChat Pay accounts, facilitating seamless transactions. For residents, the process involves linking a Chinese bank card and a mobile phone number to the account through the “Wallet” option in WeChat. Approval typically takes around one day, enhancing accessibility.

Tourists visiting China can also enjoy the convenience of WeChat Pay by linking their international credit cards since 2019. Tencent collaborates with major international card organizations such as Visa, Mastercard, American Express, Discover Global Network, and JCB. A nominal service fee is charged for every international credit card linked to the account.

Is WeChat Wallet available for foreigners?

Whilst WeChat Pay refers to the payment tool integrated into the WeChat App, WeChat Wallet refers to the virtual wallet where users store their payment information and money. For foreigners, WeChat Wallet is more limited in terms of usage as it must be linked to a Chinese bank account to use its full functions. Linking it to an international card, such as Visa or Mastercard, can only unlock limited features. For instance, there will be no peer-to-peer transfer function, and the foreign user can only receive small amounts of red packets, but cannot pay or withdraw any. This was due to the verification process of WeChat Wallet, which requires it to be linked to a Chinese local bank account.

Can foreigners use Alipay?

Foreign residents in China can easily open Alipay accounts by linking a Chinese credit card and phone number through the Alipay app, requiring real-name authentication with details like name, date of birth, and a passport picture. For tourists, Alipay offers the option to register with an overseas phone number and an email or Apple ID, alongside linking with an international bank card.

Challenges in payment for foreign visitors

Despite advancements in mobile payments in China, foreign tourists have faced several challenges using platforms like Alipay and WeChat Pay. Registration used to require extensive documentation and sometimes a Chinese phone number, complicating the process for visitors. While international credit cards can now be linked, some regions still have limited support. The Chinese phone number requirement was a major obstacle for tourists. Though recent updates have allowed international numbers for verification, with the caveat that full functionality still requires a local number. In response, cities like Shanghai and Hainan have introduced preferential tax policies to attract foreign direct investment (FDI). This indirectly supports the growth of international payment systems and eases some of these challenges.

e-CNY aiming to shift the global financial landscape

China’s digital yuan, the e-CNY, initiated in 2019, aims to centralize payment systems dominated by Alibaba and Tencent. The e-CNY project, led by the People’s Bank of China, focuses on improving payment system efficiency. It also provides a backup for retail payments and enhances financial inclusion. In January 2022, Meituan, the leading delivery platform in China, started to allow 200 of its offline merchants to accept payments in e-CNY. The merchants include restaurants, grocery stores, cinemas, and hotels.

The digital yuan (e-CNY) remains the largest central bank digital currency (CBDC) pilot globally. By June 2024, its total transaction volume had surged to 7 trillion e-CNY (USD 986 billion) across 17 provincial regions. Its usage spanned across sectors like education, healthcare, and tourism. This represents a nearly fourfold increase compared to the RMB 1.8 trillion (USD 253 billion) recorded by the People’s Bank of China in June 2023.

Cashless revolution: Exploring China’s mobile payment landscape

• Over 968.9 million individuals actively use mobile payments in China as of June 2024. The country also leads the global trend with a 38.3% mobile payments penetration rate.
• Alipay and WeChat Pay are preferred by 92% and 85% of Chinese respondents, respectively. UnionPay secures the third position with a 45% preference.
• QR Codes are widely used for payments in China. Two methods are used: scanning the seller’s QR code or displaying the buyer’s QR code.
• China UnionPay’s 2022 report shows a significant decrease in unsafe habits, averaging 1.2 per user in 2022.
• Instances of risky behaviors like using identical passwords have notably declined. Yet, telecom fraud remains a challenge, with profit-return fraud at a high occurrence rate of 17.7%.
• Foreign visitors can now link international credit cards (Visa, Mastercard) to Alipay and WeChat Pay. However, full functionality often requires a Chinese bank account, creating barriers for short-term travelers.

This article Mobile payments in China: How China became a cashless, mobile-first country is the first one to appear on Daxue Consulting - Market Research and Consulting China.

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The Chinese market remains essential for Adidas’s global success

Adidas first penetrated the Chinese market in the early 80s, establishing connections with Chinese soccer and later partnering with Chinese basketball teams. The brand formed an official subsidiary in 1997, and the 2008 Beijing Olympics marked a turning point in the brand’s rapid expansion within the athleisure market in China.

Moreover, market dynamics make China even more crucial. The growing sportswear market in China provides a key opportunity for the expansion of Adidas in China, as Chinese consumers increasingly prioritize health and wellness both athletically and aesthetically.

Additionally, China’s role as a major manufacturing hub for Adidas products makes the country essential in terms of business. A large portion of the brand’ success can be attributed to its China-specific business model, where Adidas prioritizes selling domestically produced goods.  According to Xia Jiale, the Managing Director of Adidas Greater China, 95% of Adidas products sold in China are locally-produced, and 60% are locally designed.

Adidas wins back Chinese consumers through more authentic, end-to-end localization

The downturn in 2022 was in part a result of the Guochao movement. The influence of Guochao is increasingly prevalent in the fashion industry, with unique modern Chinese clothing fusing Western designs with traditional elements of cultural heritage.

In 2023, Adidas enacted its  “In China, For China”, deepening its focus on hyper-localization, cultural collaborations, and deeper engagement with the sports market in China. It gave greater autonomy for Greater Chinese designers, enabling the Creation Center Shanghai to respond faster to local trends and give young designers more opportunities to showcase talent through local programs.

Guochao collections resonate domestically and abroad

While the global retro sneaker trend has contributed to sales of models like the Samba and Gazelle in China, the popularity of Adidas in China comes from its “New Chinese” Collections. Adidas rides the Guochao wave by blending traditional Chinese cultural elements with contemporary sportswear featuring its classic three-stripe look.

Notable products include “Tang suit” coats and jackets featuring the pankou knots seen on traditional qipaos, as well as collaborations for the Chinese New Year. Adidas also did a special CNY collaboration with CLOT by Edison Chen, a prominent streetwear brand blending Eastern and Western cultures within its designs. The popularity of “Tang suit” style jackets has even taken root abroad, as international consumers attempt to purchase through resale sites.

Adidas strengthens community engagement through partnerships and activations

Beyond tapping into the Chinese fashion industry through everyday fashion, Adidas is also capitalizing on the growing market for functional, technical athleisure. To gain credibility and visibility in the sports market, Adidas has partnered with individual athletes such as Su Yiming and Pan Zhanle, as well as the national volleyball team. The brand is also repositioning itself as a driver in democratizing access to sports for all. Adidas spearheaded Project Young Phoenix, an initiative supporting the development of women’s soccer in more rural parts of the country.

Adidas has also been leveraging offline activations in ways that connect with the wellness industry in China. In May 2025, Adidas launched a “CLIMACOOL teahouse” pop-up that featured a traditional Chinese tea house theme. The theme tied the relaxed, indulgent feel associated with the Chinese tea market to their “CLIMACOOL” collection launch. 

A prominent activation was the “POWER OF THREE” runway show at the 2025 Shanghai Fashion Week, highlighting that Adidas is not simply “operating in China” but “creating in China”. The show celebrated the 20^th anniversary of the Creation Center Shanghai, with models showcasing clothing that combined streetwear, Guochao, and high-fashion aesthetics designed by the local team. The featured pieces were then made available for direct purchase via online and in-person retail channels

Adidas expands into the Chinese pet market

In May 2025, Adidas launched a pet-focused fashion line under its Originals label in China. The collection included pet T-shirts, jackets, collars, and matching pieces for owners. The company then followed up with a Fall/Winter collection, featuring windbreakers, padded vests, and tracksuits. The launch also included an in-person “Pet Day” activation in Shanghai, where employees brought their pets for social engagement and a pet fashion show.

This China-exclusive pet line is part of the brand’s localization efforts and an attempt to target the broader pet economy in China. As pet ownership increases within the country for reasons beyond traditional utility, Adidas’s pet collection aligns by positioning pets as part of a consumer’s lifestyle identity.  

Adidas in China reborn: a brand with a new China-specific identity

• After suffering a revenue drop in 2022, Adidas revamped its Chinese strategy to be even more culturally relevant and localized through its “In China, For China” strategy. Rebranding efforts were also accompanied by increased autonomy for designers within the region.
• The creation of a China-specific business model is essential for the brand’s success. Adidas’s reliance on China for production has resulted in a domestic ecosystem of the brand mainly selling domestically produced products to Chinese consumers
• Recent success has mainly hinged on incorporating Guochao features into China-specific collections, including Tang-style jackets and traditional designs.
• Adidas has also been increasing visibility through pioneering various grassroots movements and sponsoring prominent athletes, tapping into government efforts at boosting widespread citizen engagement with sports.
• Successful campaigns of Adidas in China are diverse in nature, with some emphasizing aspects of traditional tea culture and others tapping into the high fashion scene in Shanghai.

This article Adidas in China: Winning back consumers through its “In China, For China” strategy is the first one to appear on Daxue Consulting - Market Research and Consulting China.

China’s cosmetics market, which comprises of skincare, makeup, and other products used to enhance or alter one’s appearance, is experiencing a fascinating shift in consumer preferences. There is strong focus on natural ingredients, premium products, and a growing support for Guochao. Moreover, there are emerging consumers like men and university students, prompting brands to innovate and meet diverse needs.

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Main consumers in China’s cosmetics market: young women from high tier cities

China’s beauty market is thriving, driven largely by female young Chinese adults who are in their mid-20s to early 30s. 43% of cosmetics consumers are 25 to 34 years old, which is moderately higher than 28% aged 24 or below and 29% aged 25 to 44. Women are the dominant consumers at 61.9%, but male consumers are more and more interested in skincare routines and premium cosmetics products. Many of these consumers reside in high tier cities. Over half of them were from first-tier, new first-tier, and second-tier cities, with three-fourth having a monthly income ranging from RMB 6,001 to 15,000.

University women: many beginners who suddenly makeup with little guidance

University women in China are a key demographic group that brands can appeal to as they have high interest in cosmetics and are willing to buy them. However, they struggle with issues that would typically be experienced at an earlier age in the West.

In China, many people start learning makeup at a later age compared to those in the West. Parents and schools are not very supportive of young people wearing makeup. This is because there are other priorities to focus on, like school, and makeup isn’t considered appropriate for young people. As a result, many Chinese people start learning how to wear makeup when they leave home for university.

Even though there are many products in the market, there is a need for those that suit makeup beginners. According to our social listening on pain points in China’s beauty market, young people in China find learning makeup too time consuming and difficult to learn, with other priorities like schoolwork and exercising.

Money is also an issue. Since beginners don’t know which product matches them well, they buy various products. However, they find the costs unjustifiable compared to the benefits.

Chinese workers: quick morning routines, short time for full makeup

When joining the workforce, people often wear makeup. Chinese workers desire to look good throughout the day but lead demanding lives and prefer not to spend too much time or energy on their morning routines.

Young men: small yet promising consumers in beauty

Even though the male beauty market in China is just 2% of women’s, it is experiencing robust growth. It is particularly driven by young people born in the post-95s, live in top-tier cities, and have a high per capita beauty consumption.

At the same time, men’s needs have become more specific, oil control, sensitivity, barrier repair, shaving irritation, and acne management, pushing brands to upgrade both science and communication. Sensitive-skin topics, for example, have surged across platforms like RED, Douyin, and Weibo, reflecting stressed lifestyles and rising skin reactivity.

Global players such as L’Oréal, Shiseido, and Biotherm continue to dominate the higher end of the category due to their long-term dermatological R&D and clinical credibility. But domestic brands like Proya, Make Essense, and DearBoyFriend are scaling quickly by tapping into localized insights, male-oriented routines, and short-form content that resonates with young consumers.

Both multinational and domestic brands are increasingly targeting men who are not yet in the category. Rather than generic “male grooming education,” the focus is shifting toward structured, diagnostic-led routines, simplified product pathways, and behavior-based habit building (e.g., automated refills, reminders, one-click repurchase). As Douyin becomes a core conversion channel, leveraging problem-solution storytelling and non-beauty KOL/KOC creators, such as gym influencers, tech vloggers, and fragrance reviewers, is becoming essential to capture this emerging yet promising consumer base.

Key factors influencing Chinese consumers when buying makeup and skincare products

Chinese consumers are making more rational consumption choices. According to iResearch Inc, 67% of Chinese consumers make more planned and needs-based purchases and 64% make more rational choices. Consumers focus on discounts too, with 62% more attuned to such information.

When purchasing makeup and skincare, consumers care most about usage experience – how they feel when using the product and how their skin reacts during and after use. However, the second most important factor is active ingredients for skincare and product reputation and reviews for makeup.

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Growing focus on clean, sensitive-skin, and “clinical-natural” ingredients

Health-conscious beauty has only intensified in China post-pandemic. In 2025, “clean + safe + clinically proven” continues to dominate consumer decision-making. More than ever, Chinese consumers expect products to be both natural and backed by scientific validation, a shift from early clean beauty’s ingredient-avoidance mindset to a more sophisticated focus on skin compatibility, barrier health, and low-irritation formulas.

Sensitive skin has become one of the biggest category drivers. Across Xiaohongshu, Douyin, and Weibo, content related to skin irritation, redness, and barrier repair has surged, with sensitive-skin posts growing over 50% YoY. Topics once tied to “maskne” have broadened to include pollution, stress, and climate-induced sensitivity, making gentle, soothing ingredients (Centella Asiatica, beta-glucan, ceramides, oat) core to product development.

Consumer search behavior in 2025 shows rising demand for natural ingredients with functional claims, Manuka honey, Edelweiss, Tremella, and fermented botanicals, but always paired with clinical proof, transparent testing, and safety certifications. “Natural but effective” is the new baseline.

Millennials and Gen Z remain the core clean-beauty audience. Gen Z in particular shows strong preference for plant-based, low-irritation, fragrance-free formulas, while also being more ingredient-literate and wary of exaggerated “greenwashing.” These demographics actively cross-check formulas on Ingredient apps (成分党工具), follow dermatologists on Douyin, and rely on peer reviews on RED before purchasing.

While domestic brands have improved significantly in safety and transparency, foreign clean beauty brands still hold an edge in perceived trustworthiness, particularly in the premium tier, due to stronger regulatory reputations, longer R&D cycles, and clearer clinical frameworks. This trust gap continues to offer global brands opportunities, especially in sensitive-skin, baby-safe, and dermatologist-backed naturals.

Millennials and Gen Z driving China’s next wave of anti-aging growth

China’s anti-aging market surged to RMB 82 billion in 2021 and is estimated to reach RMB 153.2 billion by 2026, growing at a rate of 13.3% annually, as per Euromonitor data.

By 2025, Millennials and Gen Z have become the core engines of growth. Preventative routines now start as early as age 22–25, influenced by screen-driven aging concerns (blue light, long hours indoors), stress, and rising interest in skin longevity. Consumers increasingly seek high-performance actives such as retinol, peptides, bakuchiol, tranexamic acid, and encapsulated vitamin C, but expect them to be paired with barrier-supporting ingredients like ceramides, panthenol, and ectoin for tolerability.

Premium anti-aging demand is also rising sharply in China’s second- and third-tier cities, where disposable incomes and ingredient literacy have grown. Both foreign brands (L’Oréal, Estée Lauder, Shiseido) and domestic leaders (KANS, Winona, Proya’s Ruby line, Bloomage Biotech) are expanding clinically tested formulas, often combining biotech fermentation, HA complexes, or TCM-inspired botanicals to differentiate.

At the luxury end, “skin longevity” messaging, inspired by medical aesthetics, has entered mainstream retail, strengthening cross-over between skincare, dermocosmetics, and aesthetic clinics.

Social media and content ecosystems rewriting the anti-aging playbook

China’s anti-aging boom is inseparable from its digital landscape. In 2025, beauty discovery is shaped by a multi-platform loop where consumers move fluidly between Xiaohongshu, Douyin, WeChat Channels, and Bilibili before deciding what to buy.

The shift is notable in three ways:

1. Skinfluencers > Celebrities.
   Dermatologists, ingredient experts, and “efficacy bloggers” dominate anti-aging conversations. Their ingredient breakdowns, routine mapping, and before/after comparisons carry more trust than celebrity-led ads.
2. Douyin accelerates trial, but RED drives credibility.
   Short-form evidence-led storytelling on Douyin fuels viral anti-aging launches, while Xiaohongshu anchors reputation through deep-dive reviews and long-term usage diaries.
3. Livestreaming evolves beyond drama-led selling.
   While big livestreamers like Austin Li (“Lipstick King”) remain influential, 2025 has seen stronger traction from vertical KOLs in dermocosmetics, aesthetic medicine, and science-backed skincare. Austin Li still holds major sway, but sales impact now depends heavily on ingredient transparency, clinical proof, and user testimonials. His ability to sell thousands of SKUs instantly showcased livestreaming power in earlier years, but today the landscape has matured into a more evidence- and education-driven ecosystem.

As a result, brands in the anti-aging space must embrace medical-beauty inspired communication, transparent clinical data, and user-led proof to win in 2025’s highly literate and performance-driven market.

Cosmetics market in China: From social influence to the rise of men’s cosmetics

• China’s cosmetic market is growing, with a 6.4% increase in 2023. It is expected to reach RMB 579 billion by 2025.
• The main cosmetics consumers are young adults aged 25 to 35 years old and women, including university women and Chinese workers. More and more young men are interested in cosmetics.
• We conducted social listening on pain points in China’s beauty market. Our findings show that university women want to learn makeup but find it too difficult. Also, Chinese workers want to wear full makeup but have too little time in the morning.
• Chinese consumers prefer foreign brands over domestic ones in skincare and domestic brands over foreign ones in color cosmetics.
• Premium, anti-aging, and clean beauty products are growing in demand.
• Social media is crucial in engaging consumers and driving sales in China.

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.

This article Cosmetics market in China: How consumer preferences are evolving and what trends are emerging is the first one to appear on Daxue Consulting - Market Research and Consulting China.

However, the market has evolved. While Xiaomi held a 20.7% share of the Indian smartphone market in 2024, intensifying competition has made this a key battleground. In Q1 2025, its share was reported at 13%. This shift highlights a market in flux and underscores that Xiaomi’s initial strategy must continually adapt. This is due to fierce local competition and changing consumer trends toward premiumization, even in price-sensitive markets.

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Xiaomi’s meteoric rise: a story of unprecedented growth

Xiaomi’s exponential rise in the tech industry is credited to its unique approach. The company has combined affordability with high quality in its smartphone offerings since its inception. A pivotal moment was the 2011 launch of the Mi 1. The model received over 300,000 preorders within 34 hours. By 2014, Xiaomi began its global expansion, quickly finding success in markets like India.

From 2015 onwards, Xiaomi began to capitalize on its smartphone success and implement a diversification strategy. This allows broadening the scope into other segments of consumer electronics and further opens up new avenues for revenue. The company has since significantly expanded its product line. Recently offering over 80 different items, including laptops, TVs, wearables, speakers, and other lifestyle products.

Its global smartphone market share grew to 13.6% in the third quarter of 2025. The company shipped 168.5 million units to secure its position as the world’s third-largest vendor. Overseas markets now contribute a significant 42% of its total revenue in 2024, underscoring its successful internationalization. Xiaomi’s smartphones are constantly ranked among the top three market players in 57 countries and regions globally.

Xiaomi’s game-changing business approach

Revolutionizing affordability as part of Xiaomi’s strategy

The first crucial aspect of Xiaomi’s business model is its commitment to affordability. By streamlining its supply chain and manufacturing processes, Xiaomi manages to keep costs low without sacrificing quality. Xiaomi also saves considerable costs by overwhelmingly selling its phones online via its platform, Mi Market. It also maintains the direct-to-consumer model for its electric vehicles (EVs), which helps to cut out the middlemen and maintain a strong brand equity.

Putting customers first: Xiaomi’s secret to continuous improvement

The company is famous for actively engaging with its customers and listening to their feedback. This is to understand their needs and preferences better and modify based on it. The company heavily relies on feedback gathered from its online user community, named MI, which it then integrates into its product development efforts. This practice is a winning strategy not only because it constantly improves the delivery and quality of the product but also because it helps Xiaomi keep a loyal and engaged user base.

Cutting-edge pricing: Xiaomi’s innovative razor-blade model

Xiaomi’s pricing strategy is also a cornerstone of its success. This involves selling certain products, like smartphones, at low profit margins or even at a loss, to attract customers into their ecosystem. Once customers are integrated, Xiaomi then markets profitable complementary products to them in bundle deals. In this context, customers can be encouraged to buy additional products that generate revenue, such as smart home devices equipped with XiaoAi (小爱) voice assistant.

Building a tech empire: the strength of Xiaomi’s ecosystem

Xiaomi’s ecosystem strategy involves investments in or partnerships with various companies to create a wide range of products. This “Human x Car x Home” strategy has matured into the core of its business.

The company now connects over 823 million smart devices worldwide. Its Internet of Things (IoT) and lifestyle products consistently contribute nearly 30% of its revenue. The strategic glue is Xiaomi’s self-developed HyperOS, an integrated system that provides a seamless experience across smartphones, home devices, and, now, electric vehicles.

Marketing genius: Crafting a global brand

Xiaomi has crafted a cost-effective marketing strategy largely inspired by Apple’s handbook. Instead of investing huge sums of money in launching advertising campaigns, Xiaomi showcases its new products mainly through its social media accounts, including WeChat and RedNote. For instance, Xiaomi’s focus on digital content, like user-generated reviews and unboxing videos. These practices have played a significant role in its advertising strategy, bolstering strong user engagement.

But Xiaomi’s wide notoriety couldn’t have reached such high profiles in so little time if it weren’t for the unique identity and charismatic profile of its founder and CEO, Lei Jun. He has rapidly elevated the company’s profile to great heights, drawing frequent comparisons to Steve Jobs for his visionary leadership style. Under his guidance, Xiaomi has embraced the philosophy of ‘innovation for everyone,’ targeting tech-savvy yet budget-conscious consumers. He constantly makes the headlines, pushing Xiaomi brand awareness alongside his public image.

Conquering new markets: Xiaomi’s strategy in the Indian market

Xiaomi’s entry into the Indian market in 2014 is the most notable textbook example of a well-executed international strategy. It rapidly became the market leader in 2018 by focusing on extreme value, localizing production, and customizing products for local preferences.

However, the market has evolved. While Xiaomi held a 20.7% share of the Indian smartphone market in 2024, intensifying competition has made this a key battleground. In Q1 2025, its share was reported at 13%. This shift highlights a market in flux and underscores that Xiaomi’s initial strategy must continually adapt to fierce local competition and changing consumer trends toward premiumization, even in price-sensitive markets.

Future-proofing Xiaomi’s strategy: Adapting to tomorrow’s tech trends

Although Xiaomi’s business model has generated unprecedented success, the company contends with fierce competitors. Its future relies on adapting to new scenarios, and recent moves show it is executing this aggressively.

1. A successful pivot toward premiumization

What was once a future goal is now a successful reality. In 2024, shipments of Xiaomi smartphones priced above RMB 3,000 in China accounted for 23.3% of its domestic total. The launch of flagship series like the Xiaomi 14 and Xiaomi 15 Ultra. Furthermore, these flagships were developed in partnership with Leica, demonstrating its commitment to competing directly with Apple and Samsung in the high-end segment, improving brand perception and profit margins.

2. The electric vehicle gambit: A new core pillar

The most significant strategic development is Xiaomi’s entry into the smart electric vehicle (EV) sector. In 2024, it launched the Xiaomi SU7 sedan, a move that completes its vision of a connected lifestyle ecosystem. The launch was highly successful, with 136,854 vehicles delivered in 2024 and a production target of 350,000 set for 2025. This represents a monumental pivot, with the company investing approximately RMB 10 billion per quarter in this new initiative. The SU7 is designed to be deeply integrated with its HyperOS. Thus making the car a seamless extension of the user’s existing Xiaomi ecosystem.

3. AI as the ecosystem’s nervous system

Beyond hardware, Xiaomi is embedding artificial intelligence across all its products. HyperOS is infused with AI capabilities for cross-device intelligence. Moreover, the company is developing large language models to power its XiaoAi voice assistant. This transforms the ecosystem from a network of connected devices into a cohesive, intelligent platform, increasing user stickiness and creating new service opportunities.

What can be learned from Xiaomi’s strategies?

• Founded on the principle of “innovation for everyone,” Xiaomi disrupted the market by offering high-quality, affordable smartphones.
• Xiaomi combines ultra-efficient operations, a razor-blade pricing model (sell hardware cheap, profit from ecosystem), and direct fan feedback to drive loyalty and innovation.
• The recent launch of the electric vehicle range creates an integrated “Human x Car x Home” ecosystem that creates a sticky user experience.
• The company made two major strategic pivots by moving upscale into premium phones and making a massive bet on smart electric vehicles (the SU7 sedan) as its next core business.

This article Xiaomi uncovered: the strategic moves powering a global tech brand is the first one to appear on Daxue Consulting - Market Research and Consulting China.