As China’s economy continues to grow and attract global attention, Chinese consumers are increasingly confident in their own culture and local brands. The Guo Chao trend, which fuses traditional Chinese elements with modern influences, is gaining momentum. This article delves into the rise of Chinese domestic brands and what this means for foreign brands operating in China.
RECENT POPULAR TRENDS
In recent years, Chinese skincare and makeup brands have gained significant popularity, celebrated for their design, innovation, quality, and cost-effectiveness. Previously, Japanese and Korean brands dominated the Chinese beauty market with their premium quality and sleek packaging. However, domestic players like Florasis (花西子), Flower Knows, Judydoll, and Perfect Diary have transformed the landscape. Once-dominant Japanese brand Sansho Kanken reportedly experienced a 20% drop in sales in China[1], while Florasis became the first Chinese beauty brand to surpass $1 billion in revenue[2]. Known for infusing traditional Chinese design into its products, Florasis exemplifies how Guo Chao is driving consumer loyalty and market success.
This success isn’t confined to domestic markets. Chinese beauty brands are making waves internationally, with Florasis and Flower Knows expanding into Southeast Asia, the United States, and Europe. Florasis reported a staggering 300% increase in overseas sales, while Flower Knows achieved 200% growth in global markets[3], with Southeast Asia contributing to an annual growth rate exceeding 100%. These milestones underscore the growing global appeal of Chinese beauty products.
Florasis eyeshadow palettes
SPORTWEAR
The Guo Chao phenomenon isn’t limited to beauty; Chinese sportswear brands are also thriving both locally and internationally. Li-Ning, founded by Olympic gold medallist Li Ning, has captured the attention of younger consumers with designs that fuse traditional Chinese elements with modern fashion trends. In the first half of 2024, Li-Ning reported revenue of 2.02 billion USD, marking a 2.3% year-over-year growth[4].
Similarly, Anta, China’s largest sportswear company, has strengthened its domestic presence through strategic partnerships, including its role as the official sponsor of Team China. This collaboration has bolstered Anta’s image and market share, contributing to a revenue of USD $8.64 billion and a 16.2% growth increase[5]. In contrast, global giants like Nike and Adidas both managed a modest average growth of 4% during the same period, highlighting the growing preference for homegrown brands.[6]
China’s athletes at Paris Olympics 2024
TECHNOLOGY
The Guo Chao trend extends into China’s technology sector as well. Domestic tech giants Xiaomi and Huawei have solidified their market dominance with affordable yet high-quality smartphones and a diverse range of smart devices. Both brands have achieved over 30% growth in recent years, driven by strong local demand and strategic innovation[7][8]. Beyond smartphones, they have successfully expanded into smart home devices, wearables, and other consumer electronics, capturing significant market share.
This shift in consumer preference is reflected in declining sales of foreign tech products. Apple’s iPhone sales in China have been on a downward trajectory since 2021, with a 47.4% decrease of shipments to China recorded in 2024 November[9]. As local brands continue to innovate and meet consumer needs, maintaining dominance in China is becoming increasingly challenging for foreign players.
FILE PHOTO: Smartphones are displayed in Huawei’s first global flagship store in Shenzhen, Guangdong province, China October 30, 2019. REUTERS/Aly Song/File Photo
An intriguing dimension of the Guo Chao trend lies in its resonance with overseas Chinese communities. With over 10.7 million overseas Chinese and an estimated 60 million individuals of Chinese descent worldwide, there is a growing global interest in reconnecting with Chinese heritage[10]. More than 30 million people are actively engaging in learning Chinese culture and language, fuelling international demand for Guo Chao-inspired products[11]. This cross-border cultural connection highlights a unique opportunity for domestic brands to expand their influence globally.
The rise of Guo Chao represents more than just a passing trend—it is a cultural and economic movement reshaping industries from beauty and fashion to technology and beyond. As Chinese brands continue to innovate and capture hearts both at home and abroad, the influence of Guo Chao is set to grow even stronger in the years to come.
Make sure to check out the rest of our Top Trends in China for 2025.
[1] https://www.cosmeticsdesign-asia.com/Article/2024/07/15/sansho-kanken-challenged-in-china-by-nuclear-water-fallout-fierce-local-competition/
[2] https://www.voguebusiness.com/story/beauty/inside-the-chinese-beauty-boom
[3] https://www.cosmeticsdesign-asia.com/Article/2024/06/20/flower-knows-sees-international-expansion-as-a-major-focus
[4] https://www.shine.cn/biz/economy/2409068818/
[5] https://www.chinadaily.com.cn/a/202403/26/WS6602a2f1a31082fc043bec61.html
[6] https://english.news.cn/20240906/82fb07e75010466386a18bf586721ef7/c.html
[7] https://www.reuters.com/technology/huawei-sees-first-half-earnings-surge-smartphone-renaissance-2024-08-29
[8] https://telecomlead.com/smart-phone/xiaomi-achieves-highest-growth-of-30-vs-6-for-samsung-103229
[9] https://www.reuters.com/business/retail-consumer/foreign-smartphone-shipments-china-slump-47-november-2025-01-03
[10] https://www.unesco.org/en/articles/overseas-chinese-long-history-0
[11]https://news.cgtn.com/news/2024-04-19/How-many-people-are-learning-Chinese-as-a-foreign-language–1sV3bqZZTKo/p.html
