Due to the proliferation of fake products and products of dubious quality, China’s netizens are wary of new products they aren’t familiar with. Therefore, Brand Loyalty among Chinese millennials is still high compared to other mature markets. As the Chinese Market Matures, product quality improves, product genuineness becomes common, and purchase options increase, fully capturing and keeping millennial brand loyalty will be increasingly critically important.

As the Chinese market matures, we expect to see a shift away from brand loyalty, similar to the US, UK and Italian markets. Since the Chinese market goes so fast, brands should prepare early for this shift.

Trusted celebrities and KOLs are indications of product credibility and remain an important channel of influence when netizens are deciding which brand and product to purchase. Continued investment in influencers is important.

Quality products dominates, but as quality becomes a commodity, brands should also pay attention to Brand Story and the Brand Heritage as points of unique differentiation with competitors. Story shows netizens an aspirational lifestyle, and heritage shows credibility and trust.