Domestic brands rapidly raising their game

Rapid growth

Chinese brands achieved rapid growth in 2020, according to the 2021 Chinese Brand Consumption Trend Report released by the JD Research Institute for Consumption and Industrial Development in May last year. These brands' transaction volume rose by 6 percent year-on-year, there were 5 percent more Chinese brands in 2020 than in 2019, while the number of consumers rose by 18 percent year-on-year, according to the report.

Domestic consumers consider five factors－identity, belonging, value, tradition, and security－when buying Chinese brands, the report said.

Wang, from Xiaohongshu, said, "Young people decide to buy a branded product as a form of self-expression, so they are fond of sharing their feelings and experiences on our platform after making a purchase."

Yu Brand, which specializes in men's skin care products, is among those seeking to stand out among the fierce competition.

Targeting young and middle-aged men in first-tier cities, Yu Brand was founded to help such consumers with skin problems caused by stress from their studies or work.

Wang Jianjiao, the company's brand director, said: "Unlike female consumers, who have been targeted by most beauty brands, males seem to have been ignored, even though they have certain demands for skin care products. Therefore, this is a good chance for us to explore potential market possibilities."

Many male consumers need advice on what to buy, how to choose products, how to use them, and how to maintain a healthy skin, Wang said, adding that most important, they need simple but direct solutions to solve their skin care problems.

After monitoring more than 70,000 young men's skin conditions for two years, Yu Brand launched its own set of professional and scientific solutions for young urban males with skin problems caused by daily stress.

Wang said the main aim of the products is to help release stress, which is the chief cause of young men's skin problems such as pimples and blackheads as a result of staying up late to work or study.

"It is essential for newly launched Chinese brands to remain focused on a small group of targeted consumers with a clear goal by providing more effective and simplified products," Wang said.

According to the 2022 Domestic Goods Market Development Report released by the Chinese Academy of Social Sciences and Douyin, from April last year to March, 71 domestic brands made the top 20 in terms of sales revenue in four key industries.

Liu Sijia, a beauty blogger nicknamed Sister Cola, said: "The beauty industry has entered the fast lane, assisted by rising confidence in Chinese brands. However, many new brands initially rely too heavily on marketing, and later struggle. Finding ways to meet increasing demand with better products is a key factor that tests whether brands survive or disappear."