When they settled in China in 1987 and 1992, respectively, the American chains KFC and McDonald’s were status symbols. The idea of ”west is best” was in the air. Not just the brands, the very concept of fast food was a novelty that enchanted the Chinese. Lines formed in front of the stores, even in the harsh winter. On Sundays, a floor of the KFC south of Tiananmen Square was reserved for wedding parties in Beijing.
Today, urban youth in China still strut around with a Starbucks coffee in hand. However, more and more they also do so by holding fancy glasses of iced tea with tapioca balls from Heytea, a brand from Guangdong province. They are almost as expensive as the American chain’s drinks.
The so-called Guochao, the “wave of the country”, is on the rise. There is an appreciation of Chinese brands, driven by increased nationalist sentiment among urban youth, more willing to show pride in the country and respond to the perception that the rest of the world wants to contain China.
The moment of cultural self-confidence leads to new products and services that incorporate traditional elements or refer to the Chinese identity, culture and history of the country. It’s called “Chinese chic”.
The appreciation of national companies is also associated with the increase in the supply of better quality goods and services. For the Chinese, the local brands of cell phones – such as Huawei, Oppo and Xiaomi – or electric vehicles – such as Nio and XPeng – are no worse than their imported competitors. Ningxia wines can cost the equivalent of more than R$600 a bottle.
On Singles’ Day, the world’s largest online sales event, one of the highlights of 2021 was the increased interest in items produced in the country. Traditional medicine products and typical clothing were also on the rise. A museum in Henan made a profit by selling miniature replicas of its collection.
In some situations, the appeal of the imported remains unshakable. Perhaps the most emblematic example is infant formula. Parents who can opt for the imported product, still bearing in mind the adulterated milk scandal, which hospitalized tens of thousands of children in 2008. In the cosmetics market, the perception is also that what comes from outside is much superior — however Chinese brands are already positioning themselves as premium.
And, in the luxury market, major international brands maintain their charm, but are attentive to new trends. For 2022, Louis Vuitton and others have already launched collections in honor of the year of the tiger, stamping the animal on their products. At the same time, Chinese luxury brands grow — which, in a few years, will also be valued abroad.
The Chinese, at the same time, deliberately punish foreign companies that, in their view, step out of line, in a mixture of partly genuine, partly government-induced patriotism. In 2021, brands like H&M suffered boycotts and a barrage of online criticism for statements about forced labor in Xinjiang. By maps that indicate Taiwan outside China or by comments on the situation in Hong Kong, several suffered at the hands of consumers and netizens, inspired by the official narrative. Chinese options are also seen with different eyes in this context. In a year in which Nike and Adidas faced problems of this type, local brands like Li-Ning and Anta Sports swam in arm’s length.
Unlike in the past, young Chinese today are convinced that modernizing does not mean westernizing. They express this confidence through their purchasing power, practicing, say, patriotic consumption. The regime winds up, and local brands are grateful for the profound re-signification of made in China in the country.
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