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英语文本:


HeyTea. Genki Forest. Perfect Diary. (will show products) Most Chinese people are familiar with these brands.

In the past, Chinese market was dominated by Western brands such as Coca-Cola, Maybelline and Nestle.

But now, Chinese start-ups have joined the competition with these established companies.

During Chinas second-largest e-commerce festival, the“618”,in June, local brand Babycare outpaced Pampers of the U.S.s Procter & Gamblein terms of sales.

During Chinas biggest online shopping festival Singles Day last year, another homegrown beverage maker, Genki Forest, overtook Coca-Cola and Pepsi in sales. Chinese cosmetic brand Perfect Diary also surpassed Maybelline and Estee Lauder in the same event.

So how did local brands win over the consumers’ hearts? According to a report from the Financial Times, much of their recent success has to do with hefty investments in marketing, particularly on social media.

Marketing accounts for nearly 60 percent of the spending of Chinese consumer start-ups, compared with 15to25 percent for foreign brands in China.

Chinese younger generation, especially Generation Z, roughlythose born between 1995 and 2009, is the major buying power of these rising brands. They have their own habits of shopping online.

For example, when buying a lipstick, they may first watch beauty bloggers reviews on social media platforms such as Xiaohongshu, Zhihu, and Douyin, Chinas version of TikTok, before finally making a purchase.

So Chinese influencers are boosting the sales of domestic brands. Some have a huge fanbase, such as Viya, and“Lipstick King”Li Jiaqi. Both of them have tens of millions of followers, and canmake a product sell out in seconds.

For so-called Micro-influencers, those who have a smaller fan base of fewer than 10,000, are also an important group for brand marketing. Many companies are giving them free products or small payments for brand promotions.

Another effective way to promote a brand here is via group chats on messaging platform WeChat, where one group is limited to 500 users. This allows brands to interact with their customers in a more intimate setting.

With sales surging, these domestic brands have been attracting growing capital attention in recent years. For example, it took Perfect Diary only four years to go for an IPO. Genki Forest was valued at 6 billion U.S. dollars in its latest round of financing in March -- tripled its figure in only one year.

But as the popular saying goes, only when the tide fades, will we know who is swimming naked. The high tide is a key period for Chinese local brands to strengthen their competitiveness and maintain their targeted audience, to eventually become established players in the long run.



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