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China’s homegrown brands gain ground, embrace new opportunities

(People's Daily Online)    16:22, November 20, 2019

Chinese consumer products, once considered inferior to their overseas rivals, are now seeing a huge boost in both terms of quality as well as sales volume, building a new image in both the domestic as well as foreign markets.

As China’s middle class income group continues to expand, and the Chinese consumer market continues to shift its major focus from production and price to quality, Chinese brands are on the cusp of embracing new strategic opportunities.

According to a Nielsen report on China's consumption indexes in the second quarter of this year, 68 percent of Chinese consumers prefer homegrown brands. Even though 62 percent of buyers would purchase international brands, domestic brands remain the first choice, the report added.

Among the top 100 words searched on, 31 were related to brands and 17 were related to Chinese brands. China’s homegrown brands also accounted for 71 percent of the total sales on the online retail platforms under Alibaba, a major rival of

Chinese products, apart from enjoying rising popularity among consumers, are also leading fashion trends. For instance, after Chinese smartphone maker Xiaomi unveiled its model MIX, an industry first with its revolutionary full screen display concept, other major global phone manufacturers already have started to follow. Now, the MIX series has been collected by the Design Museum of Finland, the Centre Pompidou of France and the International Design Museum in Munich.

At present, Chinese brands not only attract Chinese buyers, but also have become sensations among foreign consumers. In July 2019, Anta, a Chinese sports brand released a pair of basketball shoes in Oakland, California. Thereat, lines of hardcore fans are waiting outside the stores for the items to go on sale. Besides, Chinese drone maker DJI has also taken 70 percent of the global market share for years.

The rise of the homegrown products is a result jointly propelled by consumers, businesses and the government. As consumers become more rational, they are no longer willing to pay the high premiums associated with foreign products.

“The new generation, raised in the era of internet, is becoming a major force in the consumption market. They have a better mindset and are more confident. They don’t rely on expensive foreign products to show off their wealth, but rather focus more on the quality of the products,” said Li Guanyi, CEO of Xtep, a Chinese sportswear company. 

(For the latest China news, Please follow People's Daily on Twitter and Facebook)(Web editor: Hongyu, Bianji)

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