Vibrant Chinese Market: Domestic brands cashing in on consumers’ changing tastes

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Improving market access for foreign companies means more competition for Chinese companies. But at the same time, it's also a good incentive for Chinese brands to innovate. Our reporter Wang Mengzhen has more.

A new hope for Chinese brands. According to a report by consulting firm McKinsey, Chinese consumers are no longer favoring foreign brands over their domestic counterparts. And that's especially true for the country's younger generation.

"The product needs to be suitable no matter where it's from. For cosmetics and skincare products, I feel local brands suit the skin types of Asian people a bit better."

"I prefer quality products at a cheaper price. Safety assurance is important. For example, I usually feel more reassured by foreign dairy products, but some local yoghurt brands nowadays really have better and more diverse flavors."

The latest report suggests made-in-China products are becoming more credible, especially digital gadgets and personal care.

Shanghai Jahwa, a cosmetics giant that's been around for more than 100 years, has launched several cross-industry cooperation projects to woo younger customers. But the company admits that the key to finding success still lies in its scientific research into its projects.

YU WEI, CHIEF MARKETING OFFICER SHANGHAI JAHWA UNITED "First, we've established a scientific innovation center to focus more on prospective studies. Second, we've integrated a variety of research resources from domestic and international medical institutions. Our research efforts may sound less smart in a commercial sense, but we hope to represent higher-end Chinese products."

Shanghai Is leading the way. This April, local authorities launched a three-year action plan to reshape the reputation of Shanghai brands. But on the other hand, Chinese products are facing more competition, as China continues to open its door wider to global products.

WANG MENGZHEN BEIJING "With the Chinese market becoming more open, experts say greater competition actually does more good than harm for Chinese brands."

LIU CHUNSHENG, ASSOCIATE PROFESSOR CENTRAL UNIVERSITY OF FINANCE AND ECONOMICS, BEIJING "Rejecting competition isn't wise, Chinese firms should think about improving their competitiveness, also they can learn from competitors in management, business models and technology."

With China's very first International Import Expo underway, experts hope platforms like this could boost international collaboration between Chinese and foreign brands, thus helping made-in-China products climb up the global value chain. WMZ, CGTN, BEIJING.