DEMO SAMPLE - Ecommerce Subsidies | Moncler Genius | Influence Driven Retail

China’s government is making a strategic shift in its economic approach, applying subsidies and consumer incentives to online channels for the first time. Historically, subsidies were reserved for offline consumption, but this new move signals a strong commitment to ecommerce as a core driver of economic growth.

The current focus is on digital appliances, the largest category across platforms like Tmall, JD.com and Douyin. This is significant not only for brands like Apple—especially after underwhelming iPhone sales—but also for the broader market.

These policies could have substantial ripple effects across both consumer demand and manufacturing and potentially expand to other categories, creating new opportunities for brands across sectors.

At Hot Pot China, we emphasise the importance of tracking government policy shifts as a crucial element of market planning. This latest development highlights just how essential it is for brands to anticipate regulatory trends and adapt their strategies accordingly.

Those who stay ahead of these shifts will be best positioned for long-term success in China’s evolving market.

In the past five years, there has been a shift from purchasing luxury products to seeking experiences. Post-Covid, holistic self-improvement has become a key trend, with “life as the new luxury” reflected in growing interest in health, fitness, education and learning.

Brands are tapping into this trend by creating engaging community-driven experiences.

Running brands like On and Hoka One organise community runs, while outdoor brand Arc'teryx has hosted art classes in-store, fostering deeper consumer connections.

These activations help brands embed themselves into consumers’ lives, making their experiences just as valuable—if not more so—than their products.

The Moncler Genius project is built around offering the brand as a “canvas” for artists and designers to express their creativity. Since 2018, the initiative has welcomed diverse collaborators to reinterpret the brand each year. Instead of selecting designers based on brand alignment, Moncler looks for true artists with unique perspectives, fostering mutual benefit.

This year, Moncler Genius hosted its first event outside Europe, choosing Shanghai, where the government actively encourages international brands to launch events through supportive policies. This highlights Shanghai’s positioning as a global hub for brand activations.

A key takeaway from the event is the importance of differentiating branding and sales activities—branding should focus on storytelling and cultural relevance rather than direct sales. One thing to note though, Moncler faced an unexpected challenge: their official event hashtag on Little Red Book was too long and complex, leading to low adoption despite widespread event buzz. This serves as a reminder that small digital details can impact engagement, even for high-profile brand activations.

Chinese beauty brands (C-Beauty) have long been underestimated but are now thriving due to a mix of national pride, strong financial backing, vertically integrated supply chains and a deep understanding of local consumers. Brands like Perfect Diary and Florasis have achieved international success, while newer entrants like Simpcare are making waves with strategic offline expansions.

While digital channels—live streaming and influencer partnerships—offer massive reach, offline stores provide a high-value, immersive brand experience. Simpcare’s Guangzhou store, for instance, reinforces its brand identity of clean living and sustainability through thoughtful store design.

Offline retail shouldn’t be viewed solely as a sales driver measured by revenue per square meter. Instead, it plays a crucial role in branding, consumer engagement and omnichannel strategies. By integrating offline interactions with digital tools, brands can maximise long-term consumer relationships and loyalty in China’s competitive beauty market.

Brands often debate whether to partner with major celebrities in China. While a high-profile ambassador offers instant reach and strong associations, scandals can turn these partnerships into costly mistakes.

A shift is emerging, exemplified by See You Again where traditionally private celebrities are now openly sharing personal struggles. While some may view this as a publicity strategy, the authenticity resonates deeply with audiences, making the series highly popular.

For brands, this marks an opportunity: partnering with celebrities who embrace transparency and emotional storytelling can foster deeper consumer trust. As Chinese consumers increasingly value authenticity over glossy, airbrushed branding, aligning with genuine and relatable figures can drive stronger, more meaningful connections.