04 Nov 3 SECRET RECIPES FOR WINNING IN CHINA IN 2025

After decades of impressive growth fueled by a burgeoning middle class, 2024 presents a challenging landscape for many companies operating in China. The economic slowdown, driven by a real estate crisis, has resulted in sluggish domestic consumer demand, making it more difficult for brands to achieve profitability.

In this uncertain market environment, both challenges and opportunities exist. While some brands have experienced declining sales and have opted to exit the market—such as Benefit, Marc Jacobs Fragrance, and IPSA—others have thrived by adeptly navigating shifts in consumer mentality, observing emerging trends, and meeting new consumer needs.

The Chinese Pulse has analyzed the brands that are finding success in China in 2024 and has combined its professional insights into Chinese consumer behavior and market trends to uncover the strategies that lead to winning in the upcoming 2025 complex landscape.

RECIPE 1# CULTIVATE CUSTOMER LOYALTY & IMPROVE RETENTION

In an uncertain economic environment, the middle class—most affected by current challenges—will likely become more cautious in their shopping decisions. In contrast, high-net-worth individuals (HNWIs) demonstrate stronger purchasing power. Notably, Chinese consumers are among the least brand-loyal globally; they quickly adjust their expectations and are willing to explore new brands.

To navigate this downturn, brands must deepen their relationships with existing customers. Leveraging clienteling strategies and focusing on the resilient high-end market will be essential for success.

• Chanel & Cartier VIC Room / salon opening

Chanel offers private and customized shopping experience in Les Salons Privés across China.

One of China’s top luxury shopping center Hangzhou Tower launched its salon area and welcomed over 10 luxury brands VIC room, including Cartier, which opened the world first VIC lounge in Hangzhou with regular watch exhibition and jewelry seminar.

Picture @Chanel Les Salons Privés opened in Chengdu IFS, April 2024.

• Helena Rubinstein comprehensive CRM scheme

Helena Rubinstein has 6 membership levels, providing differentiated VIP benefits including beauty SPA, appreciated VIP gifting, invitation to salon event and access to brand VVIP GALA.

Picture @Helena Rubinstein 2024 annual Gala in Shanghai 

RECIPE 2# ECHO WITH TARGET AUDIENCE’S LIFESTYLE

Chinese consumers are restructuring their spending habits to prioritize a less materialistic and higher-quality lifestyle. This shift means they are increasingly willing to invest in personal interests and experiences rather than just in logoed luxury goods.

• Arc’Teryx captures the outdoor lifestyle craze

Arc’Teryx combines style with functionality, meets the need of the growing number of outdoor lovers. It bonds deeply with the on trend rock-climbing category. Arc’Teryx also embraces the “wild” staycation trend and opens store in luxury boutique hotel Songtsam Linka Shangri-La located in a Tibetan village.

@Arc’Teryx retail store, rock-climbing academy and collab with Songtsam Linka Shangri-la 

• Louis Vuitton goes gourmet

As early as Nov 2022, Louis Vuitton entered fine dining and opened the first “HALL” restaurant in Chengdu. Then, it opened the LV CLUB in Shanghai in January 2024 in a pop-up form to provide brand customers with cocktails and a series of related cultural experiences. In July, it opened its first luxury chocolate shop that created a big buzz in Shanghai.

@ Louis Vuitton Club and Chocolate store in Shanghai

RECIPE 3# BUILD STRONG BRAND PERSONA FOR EMOTIONAL CONNECTION 

Building a “persona” is one of the hottest social topics among young people in China, evident in the enduring popularity of the MBTI personality test. A “persona” serves as a positive psychological cue, allowing individuals to express “the kind of person they aspire to be.” Successful brands can attract consumers and foster a loyal community by creating inspiring and impactful personas.

• Prada, the Fashionable Intellectual

Prada’s “fashionable intellectual persona”, influenced by the personal taste and academic background of its co-creative director Miuccia Prada, fits the new attitude of Chinese consumers – “smart is the new sexy”.

Prada not only presents modern uniform looks, but also interacts with the knowledgeable community who value culture and art through activations such as Prada Mode and art exhibition by Prada Foundation.

@Prada China intellectual celebrity & KOL faces, reading event in Rong Zhai Shanghai.

• Miu Miu, the Rebellious Rich Girl

Miu Miu has achieved outstanding sales growth in the global market in the past two years, and its popularity in the Chinese market is extremely high, on XHS, #miu miu has over 1.2B views.

Miu Miu is recognized as a “rebellious rich girl” in the China market. The uniqueness, impracticality and high pricing of its products show a free-spirited and arbitrary consumption attitude.

The brand has demonstrated strong fluidity, inclusiveness and an aesthetic that is unwilling to be coerced by the secular world through a series of activations such as “Miu Miu Women’s Tales” and inviting Chinese silver generation influencers as guests.

@Miu Miu “rebel girly” China faces with rapper @Lexie Liu, Tennis Play @Zheng Qinwen, 70 yo influencer @Auntie Tan

Contact us to learn more about the luxury market in China