How can Chinese consumer brands reset global expansion playbooks?

Overseas markets are becoming key to growth rather than peripheral add-ons.

Chinese consumer companies are being forced to overhaul global expansion strategies as faster market entry, shorter product life cycles, and rising competition raise the bar in overseas markets, according to an April report by Kearney.

“In the past, China’s global presence was defined by the cost advantages of ‘Made in China,’” Kearney said. “Today, it is fuelled by the emotional appeal and cultural relevance of Chinese brands.”

The shift reflects how international growth is accelerating. Chinese brands are compressing overseas expansion timelines from about a decade to as little as three to five years, enabled by cross-border e-commerce, social media-driven marketing, and more sophisticated supply chains, the report said.

Pop Mart International Group Ltd. illustrates both the opportunity and the pressure. Its designer toy characters and collectible franchises such as Labubu, Skullpanda, and Crybaby have generated strong demand across regions.

In Thailand, Pop Mart stores rank amongst the most visited in major malls, whilst launches in New York and London have drawn long queues and rapid sellouts.

The company’s overseas revenue exceeded $203m (RMB1.4b) in the first half of 2024, accounting for about 30% of total sales, almost three times its share in 2021.

The figures underscore how international markets are becoming central to growth rather than peripheral add-ons.

Kearney said companies are also changing what they export. Rather than focusing solely on physical goods, brands are taking overseas distinctive characters, design languages, and lifestyle ideas, which tend to generate stronger repeat demand and consumer attachment than traditional mass-market products.

Globalisation models are evolving in parallel. Companies are moving away from trade-led growth towards integrated overseas operations, embedding research, manufacturing, and marketing closer to end-consumers.

Many are also cutting reliance on third-party platforms in favour of omnichannel strategies that combine direct-to-consumer websites, social commerce, offline stores, and large online marketplaces.

Opportunities differ sharply by region. In the Asia-Pacific region, rising middle-class consumers are driving demand for higher-quality but affordable products, particularly in beauty, fashion, and personal care.

In Europe and North America, shoppers prioritise innovation, design, and sustainability, supporting categories such as consumer electronics and premium home appliances.

Emerging markets in Latin America and parts of the Middle East and Africa favour value-driven products, including smartphones and household goods.

Chinese companies are responding with differentiated playbooks. Haier Group Corp. is focusing on deep localisation through investment in overseas research and production.

The company reported revenue of $42b (RMB286b) in 2024, with overseas sales continuing to expand.

MINISO Group Holding Ltd. is prioritising emotional engagement and brand building, delivering global revenue of $2.5b (RMB17b) in 2024, supported by overseas sales growth of 41.9%.

As competition intensifies, Kearney said companies must invest in long-term capabilities, including brand identity, innovation, channel development, regulatory compliance, and risk governance to sustain international growth.

Questions to ponder:

1. How can Chinese brands balance expansion speed with local cultural relevance without stretching operations?
2. How can companies manage geopolitical and regulatory risk whilst embedding deeper overseas capabilities?