Reference News Network, November 13 report: The Hong Kong South China Morning Post website recently published an article titled "Why the Labubu Frenzy Is Just the Beginning of China's Branding Boom?" by Chris Perera. The content is translated as follows:
They can be called China's "Sputnik moment": DeepSeek, BYD and Xiaomi cars, Beijing's robot "Olympics," Huawei's revival, and Labubu.
Labubu has completed its mission. This little spirit doll clearly shows that Chinese brands are no longer synonymous with cheapness. Pop Mart has built trust, and the company's management predicts sales this year will reach $4 billion. What's next?
The next chapter will be even grander and more deeply involved in industry. Brand power is spreading into areas that we usually do not consider as consumer stories: batteries, cars, drones, biotechnology, and even infrastructure. Chinese companies now compete not only on hardware but also on trust.
A name that is beginning to become familiar to consumers is CATL. CATL holds about 38% of the global electric vehicle battery market, and together with another electric vehicle manufacturer, BYD, they account for more than half of the battery installation volume in the first half of 2025.
When internal components become the brand you seek, you have moved from cost advantage to brand advantage. This is a reflection of a broader shift in Chinese business thinking.
As the US intensifies scrutiny, Chinese companies have gained a clear lesson: reputation spreads. Huawei's revival through foldable phones and its partnership with smart cars shows how quickly a brand can reset. As the official transportation partner of the 2024 European Cup, BYD brought its name to Europe's biggest stage. TCL recently hired Olympic ski champion Eileen Gu as its global brand ambassador.
If a brand is a promise, execution is evidence. Chinese companies now communicate with the capital market on time using simple and understandable language. Perhaps due to the TikTok generation, they treat communication as they do quality control: every interaction with suppliers, factory visits, and customer complaints are default public. This is shaping a new way of thinking in Chinese business, allowing partners and consumers to see and trust these companies in ways never before possible.
Chinese companies' overseas operations are thriving, but the returns from better brand building are also becoming evident in the domestic market. Compared to the same period last year, foreign tourists traveling to China increased by about 30% in the first half of this year, with over 13.64 million people entering without a visa, a growth of nearly 53.9%. In the spring of this year, the Canton Fair received a record number of over 310,000 overseas buyers.
As international bank cards integrate with local payment systems through collaborations with companies like Tencent, even minor friction is being eased. WeChat Pay has particularly intensified its efforts in international brand building. Overall, the trustworthiness of the "China" brand is strengthening.
What happens next is already obvious. As batteries, sensors, and storage devices shift from providing specifications to joint logos and warranties, industrial brands will come into the spotlight, following the logic of the "built-in Intel processor" era (Intel's advertising strategy, which tells consumers that computers with this logo have Intel central processors - note from the website).
Cross-border co-creation will deepen further, with Chinese speed combining with partners' market access advantages in pharmaceuticals, robotics, climate technology, and advanced materials. At the same time, brands will become carriers. The Pop Mart City Park in Beijing hints at the future, where Chinese cartoon characters may challenge Disney and LEGO parks on their own turf.
If you sell products to China, collaborate with China, or compete with China, it is important to understand the current situation. This is an early super cycle of brand building, with many new brands emerging. The next few years will determine who can turn this upward momentum into lasting profits. (Translated by Li Sha)
Original: https://www.toutiao.com/article/7572109087589089827/
Statement: The article represents the views of the author. Please express your opinion by clicking the [Up/Down] buttons below.