China market entry guide: From research to execution
Last updated: 3 Jun 2025
Discover the keys to successful market entry in China and connect with a consumer base that’s actively looking for premium products
- China’s growing middle class and high demand for premium products create huge opportunities for foreign brands, especially in beauty and wellness
- To succeed in China, businesses need solid market research, targeting consumer segments with tailored strategies
- Partnering with local distributors and localizing brand names are crucial for navigating China’s unique market landscape
- Leveraging Tmall or Taobao and timing launches around major sales events can boost visibility and sales
With the popularity of Australian products increasing among Chinese consumers, breaking into the Chinese market can be a lucrative opportunity for Australian businesses.
Australia has a reputation for being a clean and green country, making it a trusted source for beauty, F&B and wellness products.
China is Australia’s largest trading partner; in 2023, $218.8 billion worth of goods and services were exported to China from Australia.
Since the China-Australia Free Trade Agreement (ChAFTA) was introduced in 2015, the import and export tariffs have significantly decreased, increasing trade between the two countries.
But while the agreement makes it easier to export your products into China and introduce your brand to Chinese consumers, finding real success takes a lot more. You need the right market entry strategy, marketing campaigns and expansion plans to gain a foothold in the Chinese market.
Let’s take a look at everything you should know about introducing your brand in China:
Table of Contents
Get your market research right
The key to successful market entry in China is data and thorough research. Most foreign brands fail in China because they do little to no research on the ground before actually introducing their products. Incorrect assumptions about the market and your customers leads to costly mistakes.
Take a look at the top ways to ensure your market research is accurate.
Understand the consumer segments in China
Consumer segments are pretty diverse in China and the gaps between each segment are growing at a fast pace. China’s eastern coast provinces, including Beijing, Shanghai, Guangzhou and Shenzhen have more high-income and upper middle-class consumers, but that doesn’t mean you shouldn’t target tier-2 and tier-3 regions.
According to BCG research, the middle-class and affluent consumer (MAC) population will increase by 80 million by 2030. This segment, which comprises 40% of the total population, will become a source of long-term resilience for the consumer market. Over 70% of these new MACs (56 million) will come from tier-3 cities and below.
BCG research also revealed that even during the last few difficult years, Chinese consumers consistently showed a desire to pay a premium for high-quality products across various categories.
Here are the major Chinese consumer profiles:
Gen Z: Born between 1995 and 2009, this generation is deeply influenced by digitization and globalization. About 79% of Gen Z is single and it is also the most educated generation in the country. The segment is more interested in subcultures than mass-popular products.
Gen Y: Born between 1980 and 1994, a majority of them are married with children. Many also moved from small towns to medium and large cities for better work opportunities.
Gen X: Born between 1965 and 1979, this generation has already had wealth since they were born during the very early stages of economic and social reforms. Compared to all the other consumer segments, Gen X has the highest income levels and positions across various industries.
Baby boomers: Born between 1950 and 1964, this segment is now steadily moving into retirement and has more time (and money) to explore new things.
When conducting customer research, take note of the following tips to identify your target customers accurately:
Customer preferences can change with time
It’s only natural for some consumer preferences to change with changing market trends and life stages of the consumer. But there will always be some customer traits that stay the same. Identifying the fixed traits and differentiating them from the changing traits is important to successfully align your products with the requirements of the consumer segment.
Tap into niche markets
Don’t just look into what products the consumer segments may be interested in; focus on what niche you can tap into. After all, you can’t rely on just a few products to grow your brand.
Clearly define your target audience before any investment
Just stating your target audience is millennial/ Gen Y women is way too broad. Consumers under this demographic can have different income levels and lifestyles depending on their work, education and location. Not everyone in this segment may be interested in your products.
Instead, your target audience could be more specific like millennial/ Gen Y women who live in tier-1 cities, have at least a bachelor’s degree and are currently part of the workforce.
Check if there’s demand for your brand
After you’ve understood the consumer segments and pinpointed your target audience, you need to determine whether there are customers who will be interested in the type of products you offer. You should also avoid entering an already overcrowded niche where Chinese competitors have a monopoly.
Check if the category is branded or not. Do people prefer branded or non-branded products?
For some product categories, people don’t care much about what brands they buy from. But for others, brands can make a lot of difference to the consumer experience.
For instance, products like lipsticks, beers, and wine are highly branded categories, and customers are looking for certain brands that they prefer and trust.
It’s a good idea to research all the major e-commerce platforms and even look through customer reviews to gauge the overall opinion about the product category.
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Key considerations before introducing your brand in China
Collaborate with a local partner
Local partners already understand the ins and outs of the Chinese market, including consumer preference, current market trends and the most optimum market entry strategies. A local distributor can help you navigate the regulatory complexities, provide advice on what Chinese customers usually expect from brands like yourself and help you avoid common pitfalls.
Localise your brand for Chinese customers
Your brand name matters a lot if you want to connect with Chinese consumers and offer a memorable brand experience.
Now localising your brand doesn’t mean translating your brand name to Chinese or completely changing the name for Chinese customers. The purpose of localization is to ensure your brand name easily rolls off the tongue in Mandarin, carries a good meaning and creates a cultural connection with the customers.
For instance, when Coca-Cola entered the Chinese market, they decided to introduce the brand name as 可口可乐 (Kěkǒu Kělè), which directly translates to ‘delicious happiness.’
Here are some major ways to localize your brand name in Chinese:
Choose a Chinese brand name that is phonetically similar: If Chinese speakers can easily pronounce your brand name, you can keep your Chinese brand name the same.
For instance, Nike used a more direct translation, as the brand name is pronounced as 耐克 (nài kè) in Chinese, which means enduring and persevering.
Now, that doesn’t mean it applies to all brands. If your brand name translates to something weird in Chinese, you might have to consider the next option.
Keep the brand meaning the same: You can choose a new Chinese brand name that has the same meaning as your global brand. While this could help you connect with local Chinese consumers, it could possibly alienate you from your international brand positioning.
Go with this option if your brand’s English name is too difficult for non-English speakers to pronounce.
Of course, you can also keep your brand name exactly the same with no changes. It is still a better option than a bad-meaning or phonetic adaptation.
Find your brand’s USP
Consumers trust Australian-made goods due to their reliability, safety and strict quality controls. You can highlight your brand’s Australian origins to appeal to Chinese customers.
But remember, your brand’s unique value proposition should be more impactful than where you’re from. There are already many Australian and European brands in the market. It’s not a wise decision to rely too much on the ‘Australian’ tag to market your products unless you are in an industry where the ‘Made in Australia’ tag adds real value (like food, beverages and health supplements).
Select the sales channels for your brand
As part of your market research, you also need to decide how you want to enter the Chinese market. You can set up physical stores, stock up your product in duty-free stores, or focus on selling your products on Chinese e-commerce giants like Tmall, Taobao and JD.
However, remember that you will need to set up a legal business entity in China to officially sell your products. If you aren’t keen on going through all that paperwork yet, you can consider selling on Tmall Global, where foreign brands are allowed to sell their products directly to Chinese customers.
While you can also set up an online store of your own instead of listing your brand on an e-commerce marketplace, you’ll have to probably spend a lot of money on paid ads to really get customers to your website. Also, most customers in China prefer to check the top e-commerce marketplaces first when they want to buy a product.
It’s also a good idea to launch your brand around major e-commerce sales events in China like Singles Day and Golden Week as these events attract a large number of customers.
Understand China’s unique digital ecosystem
Major social media platforms like Facebook, X (Twitter) and Instagram are blocked in China. Instead, China has its own set of super apps like Weibo, WeChat, Douyin and Xiaohongshu that are all-in-one platforms with social messaging, streaming, gaming and e-commerce. A 2022 report shows around 84% of Chinese customers have shopped on these social media platforms.
You’ll have to learn how to use these platforms to your advantage to get more eyes on your brand.
Consider hiring a local team
If you’re serious about expanding your brand presence in China, you’ll need ground help to manage your local operations. Consider hiring local Chinese talent to manage social media campaigns for your brand. Their up-to-date ground knowledge can help you keep up with Chinese trends and customer expectations.
Ready to take your brand to China?
To make your brand successful in China, you’ll require local expertise along with global. It’s not something that can be done in weeks. It could take months or even years, which is why patience is key.
There’s a lot of diversity in regional cultures and consumer preferences and your brand’s success hinges on how well you can adapt to this diversity.
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Disclaimer: The information contained is general only and largely our views. Before acting on the information you should consider whether it is appropriate for you, in light of your objectives, financial situation or needs. Although information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions, estimates, mentioned products/services and referenced material constitute the author’s own judgement as of the date of the briefing and are subject to change without notice. WorldFirst shall not be responsible for any losses or damages arising from your reliance of such information.
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