Guochao: The New Marketing Trend of China

INTRODUCTIONFashion giants have downsized and shrunk in China in recent months, as Gap and Zara planned to close a number of shops in China. The economic decline under the Covid-19 pandemic can partially account for that. 

However, according to Statista, there has been a sharp rise in fashion market volume in China, with a positive outlook post the pandemic. The emerging of “Guochao (国潮)” can be seen as a significant factor for the performance differences between foreign and domestic fashion brands.

An image of Chinese Youth

(Source: Unsplash)

According to industry experts, "Guochao" can be defined as the trend of Chinese domestic brands incorporating Chinese culture, attracting significant interests of Chinese youth. 

In the 2018 New York Fashion Week, Lining(李宁), a representative of Chinese old fashion brands, gained an extraordinary performance by showing fashion clothes with Chinese traditional culture elements. Since then, “Guochao” has entered the eyes of Chinese youth striving to be fashionable.

How did "Guochao" Become a Trend?

Actually, the origin of "Guochao" can be dated back much earlier, at least as early as when Dr. Shan Jixiang, a famous curator of the Palace Museum in Beijing, took actions to advocate different aspects of Chinese traditional culture. The Palace Museum developed cultural and creative products covering cosmetics, accessories, and artwares, produced television programs and cellphone applications to introduce the cultures exhibited within the museum, which has created a strong interest from the youth and provided cultural elements for fashion brands.

 Clothes with elements from the Palace Museum 

(Source: the Flagship Tmall Shop of Anta Sports and Basketball)

A large number of brands, covering apparel, food and beverage, and electronic products, have gotten involved in the “Guochao” movement. They have integrated "Guochao" in a range of marketing strategies. 

Guochao Brands Check

01. Lining (李宁)

Lining Fashion show 

(Source: Baidu)

As a representative of old Chinese fashion brands, Lining took the first step of changing its image in the consumers' minds. It has re-positioned its target group and made the young generations as its focus. Then, it made changes on the resources distribution, which has made Lining transfer into a sports-related fashion brand or possibly even standing on its own as a genuine fashion brand. 

Furthermore, Lining has integrally used various innovative marketing channels to increase its brand images, such as live streaming and local street shows. Lining hired the most popular influencers, such as Li Jiaqi (one of the best live streamers in China) to advocate its products during such activities.

Like Lining, many other old Chinese brands have begun adopting these marketing strategies to gain popularity among young people, such as White Rabbit (小白兔) and Wanglaoji  (王老吉)

White Rabbit Advertisement 

(Source: The Beijing News)

02. Radomevent (RDET)

Another "Guochao" brand that should be mentioned is Radomevent. It can be seen as a representative of a group of trendy "Guochao" fashion streetwear brands. Without "brand burden", as they were all established in the last few years and are still quite young, they sell clothes that express the personalities and cultures of the Chinese youth.  

Some of these brands took an online-first approach, mostly through Taobao. And only after gaining popularity online have expended into an offline brand. 

Only at the end of 2019, Radomevent opened its first offline shop in competitive Shanghai, to better connect with its fans and expand on its story-telling marketing strategy.  

One Randomevent Offline Party

(Source: Randomevent Official Wechat Account)

03. Huawei (华为)

（Source: Taobao)

Huawei, in a completely different product category, high-end electronics, is also adopting the sense of "Guochao" in its marketing strategy.

Globally researching and developing, and locally serving has, in the beginning, stood the high-quality image of Huawei in the minds of the public. 

Formerly, digital product companies only gain customers through increasing quality and providing splendid service. However, now they pay more attention to marketing to meet the psychological needs of young people.

For example, the 2020 New Year gift box of Huawei 10S, which combines Chinese traditional culture with innovative technology. The whole gift box is composed of eight items, including Huawei 10S mobile phone, mobile phone buckle, mobile phone wire harness, bookmark, a red envelope, mobile phone bag and the New Year wishes, which creates an eight-piece New Year's must-have set for young people.

Guochao gift box of Huawei

(Source: Taobao)

Huawei's marketing strategy is centered on quality products and internationalization. With a leading number of patents and intellectual properties and frequent international appearances, Huawei changed the Chinese lack of self-confidence in high-tech areas. In addition, Huawei's response to Trump's boycott showed its confidence and resolution to develop depending sorely on Chinese people, which shaped an excellent image in young people's minds.

 Huawei Product Design

(Source: Unsplash)

Moreover, different from other fashion brands, Huawei-related topics have gained on-going popularity in Chinese social media platforms. Huawei can raise numerous discussions from various aspects of its business, from recruiting most talented students with offering astronomical salaries, its ambition to surpass Apple and Samsung, to releasing new luxurious cellphones.

CONCLUSION

Every year, there will be a new marketing trend, but they usually quickly fade away. Thus, as an observer, you may be skeptical about the long term continuity of the "Guochao" trend. However, with challenging international conflicts, the "Guochao" trend may continue to last for a significant period, as it matches cultural and psychological needs of confidence and personality expression in these difficult times.