2025.09.18

Word count: 2867, estimated reading time: about 5 minutes

Author | First Financial Miao Qi

Cover image | AI generated

In the face of the threat of a “weak peak season” in the fourth quarter of the European and American markets, the resilience of Chinese brands is highlighted.

According to the latest foreign trade data released by the General Administration of Customs, China’s goods exports grew by 6.9% in the first eight months of this year, with an export growth rate of 4.8% in August. Behind this is the continuous growth of non-U.S. exports and private enterprise exports.

According to Zhan Yubo, director of the Economic Research Institute of the Shanghai Academy of Social Sciences, the greater impact of the trade war is not the direct shock, but the transmission of the “export grabbing” effect. “The growth of net exports in the first half of this year was rapid, and if the export grabbing effect weakens later, it is easy to see a weak peak season.”

However, Wu Yulin, senior business development director of The Trade Desk (TTD) in China, told First Financial that despite the shrinking demand, Chinese companies going abroad are increasing their investment in marketing and brand building. At the same time, whether it is the integration of AI technology or in niche areas such as robotics, Chinese brands have demonstrated outstanding craftsmanship and technological innovation.

Chinese Automakers Promote Domestic Chips

According to market research firm eMarketer, due to the ongoing pressure on the global economy, U.S. holiday retail sales are expected to grow by 1.2% year-on-year in 2025, which, while still maintaining positive growth, is the lowest level since 2009, and a decline of more than 3 percentage points compared to last year’s growth rate.

Wang Qing, chief macro analyst at Dongfang Jincheng, stated that after various “export grabbing” and “transshipment” activities, the downward pressure on exports will gradually become apparent in the fourth quarter, so it is necessary to pay close attention to the subsequent impact of declining external demand on the production side.

From the consumer side, a recent survey released by TTD shows that the 2025 overseas shopping season is characterized by significantly earlier preparation time, increased rational consumption awareness, more complex shopping decisions, and cross-platform, multi-touch behavior paths. For example, in the U.S., half of consumers plan to complete most of their purchases before Black Friday. This preemptive behavior reflects a more rational consumer mindset that is becoming prevalent globally.

In the face of the threat of a “weak peak season,” Chinese electronic consumer goods still possess strong competitiveness. At the recent 2025 Berlin International Consumer Electronics Show (IFA), about 764 Chinese companies participated, accounting for nearly 40% of the total. In addition to established brands like Haier, Midea, TCL, and Hisense, newer brands such as Trifo, Roborock, DJI, and Infinix also held significant positions.

Wu Yulin stated that whether it is the integration of AI technology or in niche areas such as robotics, Chinese brands have demonstrated outstanding craftsmanship and technological innovation. The competitiveness of Chinese electronic consumer goods going abroad relies not only on the foundational advantages of manufacturing and logistics but is also gradually gaining premium capabilities in high-end markets, making them an important choice for global consumers during the fourth quarter shopping season.

With the upgrading of industrial structure, high-tech products, high-end equipment, and green low-carbon products are becoming new growth points for Chinese companies going abroad. More Chinese enterprises are leveraging their long-term accumulated advantages in independent research and development and industrial clusters to transition from product “going abroad” to brand “going abroad,” as well as capital and technology “going abroad,” to layout the global market.

Wang Shengyang, founder and CEO of domestic automotive simulation chip company Naxinwei, told First Financial that thanks to the growth of Chinese automotive brands overseas, the brand recognition of Chinese chips globally is also increasing. “Many international clients pay attention to the trends of Chinese automobiles, and thus they will also pay attention to the Chinese chips they use. If Chinese cars can be made so well, Chinese chips will not be inferior either.”

In 2024, Naxinwei’s overseas revenue will account for more than 10%, while relying on the domestic market as the most important base and “testing ground,” it will transplant its core capabilities overseas, becoming a new growth point. This is one of Naxinwei’s key focuses this year and a long-term plan for the future.

Diverse Layout Strategies of Chinese Brands

In response to the U.S. policy of raising tariffs, Chinese brands have long initiated diversified layouts.

According to data released by customs recently, in August, China’s exports to the EU and Japan increased by 10.4% and 6.7% year-on-year, respectively, with growth rates accelerating by 1.2 and 4.3 percentage points compared to July. During the same period, the export growth rate to ASEAN, the number one export destination, was 22.5%, accelerating by 5.9 percentage points compared to the previous month.

As a barometer of world trade, shipping giant Maersk stated in its August report: “The decline in North American imports has been significantly offset by strong growth in imports from Europe, Latin America, West Asia, Central Asia, and Africa.”

For Chinese enterprises, the gap in exports to the U.S. market has been filled by the continuous growth of non-U.S. exports. Wang Qing believes this indicates that while exports to the U.S. have significantly declined, the trade diversion effect continues to strengthen, showing that China’s trade diversification is forming an important buffer against fluctuations in the external economic and trade environment.

Wu Yulin told First Financial that regarding marketing for the fourth quarter shopping season, there has been a noticeable increase in inquiries from Chinese brands about Europe, Japan, South Korea, and even the Asia-Pacific region. “Everyone is no longer putting all their eggs in one basket; different markets have their own characteristics, and diversified layouts allow brands to operate more steadily during the shopping season, which has become an important strategic shift for current overseas enterprises.”

Zhang Xing, chief growth officer of international marketing technology company SparkXGlobal, also stated that as a global marketing enterprise, their current clients account for less than 30% in the U.S. market. In recent years, companies have increasingly accelerated their layout in core European countries to avoid trade war risks. “This year, the overall budget is shifting towards European and Japanese and Korean markets,” and this trend will continue to strengthen.

In Wu Yulin’s view, in the past, Chinese brands typically focused on a single market, such as first entering North America or Europe, and then deepening their efforts for a period before considering expansion. However, with the accumulation of experience and stabilization of business, they are beginning to evaluate the potential of more markets. “It has been proven that many enterprises can indeed expand simultaneously in multiple markets.” Therefore, a significant trend in recent years is that overseas enterprises have become more relaxed and confident in market expansion, no longer worried about “putting all their business in one market,” but rather leveraging successful experiences validated in one market to seize opportunities in other regions more actively.

However, when facing different markets, especially emerging markets, the strategies of brands inevitably differ. Wu Yulin pointed out that in a mature market, companies usually have a clear understanding of who their target consumers are, what concepts they identify with, and what products they prefer, making the approach relatively clear. But when entering new markets, it is necessary to re-understand local consumer habits and cultural differences. For seasonal products, for example, lawn mowers in the U.S. are mainly sold in summer; when winter arrives in the U.S., companies will shift their sales focus to Australia, where the seasons are opposite. This means that the same type of product requires completely different marketing rhythms in different markets, and the role of tools and data is indispensable.

Building User Loyalty Through Brand Value

Chinese brands are gradually gaining the trust and value recognition of overseas consumers.

Zhang Xing told First Financial that from the initial stage of relying mainly on supply chain advantages to export goods, to the second stage of leveraging product design capabilities to customize products and rationally select markets, the current overseas expansion of Chinese brands is entering a third stage. One significant change is that “not only selling products, but gradually having brand premiums,” while the competitive opponents have become local brands in overseas markets, and they are beginning to actively convey the brand power behind the products. The next step is that Chinese brands are no longer just a concept of “going abroad,” but have become localized international brands in overseas markets.

“Many overseas consumers care deeply about the concepts and values behind the brand, and they may like a brand because they identify with its philosophy. This differs from the more pragmatic consumption mindset in China,” Wu Yulin said. Chinese consumers may emphasize “value for money” more, for example, a $20 coffee machine is already considered quite cost-effective, but in overseas markets, if the brand’s value and philosophy cannot be conveyed simultaneously, a “cognitive gap” will arise. This is also the core challenge faced by Chinese brands going abroad—how to win the trust and recognition of overseas consumers while maintaining “value for money.”

Zhan Yubo also pointed out that the globalization of manufacturing is a relatively natural process, and Chinese manufacturing has evolved from low-end to high-end through continuous iterations of product quality and technology, thereby driving the internationalization upgrade of manufacturing brands. However, the recognition of Chinese fast-moving consumer goods brands, as well as cultural and entertainment brands such as film and games, still has a significant gap compared to international brands, a deep-seated reason being the limited understanding of Chinese culture and brands.

“Currently, global economic development and mainstream lifestyles are still greatly influenced by Western culture. Although in recent years, Chinese IPs like Black Wukong and Labubu have generated some phenomenal impacts globally, the overseas expansion of Chinese cultural and service brands still requires more proactive efforts,” Zhan Yubo said.

WeChat Editor | Qi San

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