From virality to retail reality: Can global Gen Z brands crack China?

Global Gen Z brands, such as Heaven by Marc Jacobs and Paloma Wool, are booming in the West with their buzzy ‘it’ products, mid-tier price points, and cult followings. But can they make a splash in China, too? With a population of around 280 million, China’s Gen Z has spending potential that makes the demographic a major target group for global brands. And with the mainland’s digital-savvy Zoomers now more plugged in than ever, their exposure to global influences is markedly wider than their predecessors’. These consumers are embracing external influences more too, as evidenced in their participation in international-driven trends such as the “mob wife aesthetic,” “tenniscore,” and “indie sleaze.” But getting the country’s youth to splurge isn’t easy. Studies report that this age group is becoming more price-conscious, favoring product quality and authenticity over aesthetics. Subcultural origins To pique the cohort’s interest, Junjie Wang, former Vogue Business’ Senior China editor and current Vogue Hong Kong editor, argues that global cult favorites should be leaning into their subcultural roots as a USP. “Young [Chinese] consumers are into finding communities,” Wang tells Jing Daily. “Indie brands are better advocates to build these strong communities, as they generally have distinctive brand images.” Like Barcelona-based Paloma Wool, which recently caught the attention of China’s netizens with its modern minimalism, Heaven by Marc Jacobs (the subsidiary line introduced by Jacobs in 2020) is also banking on its subcultural elements to build an audience. The brand’s plucky, Y2K-heavy aesthetic has resonated with style-savvy youngsters the world over. That global reputation is now spilling over into China, too, thanks to the mainland’s digital natives. This is the case for most international indie labels gaining pace in China today. Cracking China’s cyberscape The country’s content sharing platforms have surfaced as key mediums for putting buzzy fashion disruptors onto Gen Z shoppers’ radar, says Andrew Lam, co-founder of creative agency TouchLDN. “Chinese social media has played a significant role in introducing indie brands to China,” Lam tells Jing Daily. Lam points to Bulgarian accessories and footwear label By Far’s recent online breakthrough in the mainland as an example. Xiaohongshu in particular is home to a large community of fashion enthusiasts, adds Wang, making it a “go-to place for Chinese Gen Zs to get to know these indie brands.” Paloma Wool is one player benefiting from the app. The label has accumulated over 11 million views on the channel, with influencers, styling accounts, and other purveyors of taste reposting its garments and campaign images to their followers. Emerging Vietnamese label Fancì Club is experiencing a similar process of popularization online. The brand, founded in 2018 by fashion school dropout Duy Tran, is taking off with its ultra-feminine clubwear, which has so far amassed 2 million views on Xiaohongshu. Celebrity endorsements have also helped propel global indie labels to the fore of China’s fashion conversation: Kendall Jenner and Rosalía have been previously papped sporting Paloma Wool, while Bella Hadid wore a Fanci Club corset combo in 2022. The model also starred in Heaven’s 2022 campaign, joining the likes of Olivia Rodrigo, Ice Spice, Charli XCX, and Doja Cat. Meanwhile, Fancì Club’s APAC roots have given the brand an upper hand. The label has already received the stamp of approval from a number of Asian idols, including Blackpink’s Jennie and Lisa (the label designed a custom look for the group's Born Pink world tour), alongside K-pop group Twice’s Im Na-yeon and Chinese actress Esther Lu. Local competition heats up But these brands are up against strong competition from China’s homegrown Gen Z disruptors, says Lam. “The Chinese indie brand landscape is rich and diverse with brands that have established themselves through local production and a thorough understanding of the market's specific requirements, including sizes and materials,” he says. With no language barrier to contend with and a growing preference among China’s Gen Z consumers for authentic Chinese products, driven by the proliferating guochao trend, domestic brands possess a competitive advantage. To compete, Lam says global entrants should be developing “comprehensive strategies” that tap into what makes Chinese consumers tick. “The focus is on immersing consumers into the brand’s culture, allowing them to imagine and personalize their own experiences,” he adds. A foot in the door While celebrity endorsements and online virality have played an indelible role in driving growth, Vogue Hong Kong’s Wang believes that these brands shouldn’t just rely on netizens and KOLs to do the work for them. Instead, like Lam, Wang notes that brands should be aiming to strike the right balance between growing a community organically and implementing a clever marketing strategy. For brands like Paloma Wool and Marc Jacobs’ Heaven, the first step should be establishing an official channel on platforms like Xiaohongshu and Tmall, says Wang. “Local counterparts are already using social media as a way to speak with their audience,” he adds. Products from Marc Jacobs’ Heaven are currently being sold by independent retailers on Tmall (though their authenticity has not been verified). Despite consumers having expressed immense demand for the brand’s line of goods, an official account is yet to be launched. Costly and complex logistics are also hindering indie brands trying to secure a physical foothold in China. As a result, they’re exploring alternative solutions to expand their consumer touchpoints. For instance, Paloma Wool kicked off its ongoing world tour pop-up project in 2019 (the initiative was paused during the height of the pandemic) to broaden its international reach. Over a two-week period, the brand pitches a temporary storefront across various global locations, including previously Seoul and New York. It has, however, yet to announce any plans to expand its circuit to China. Marc Jacobs’ Heaven, meanwhile, has tentatively begun fleshing out its physical presence in the mainland via multi-brand retailers. The brand is currently stocked in SKP Beijing, a high-end hotspot popular among China’s fashion-savvy crowd. It’s a potentially hard slog, given Chinese consumers’ rising national pride and the challenges independent fashion brands face. But TouchLDN’s Lam thinks that, if approached correctly, these global Gen Z favorites can make it big in the mainland — they just need to be committed to the cause. “Chinese consumers are [becoming] increasingly open to global indie brands,” he says. “So, it’s vital for brands to not only build their presence but also ensure effective distribution within China.”

From virality to retail reality: Can global Gen Z brands crack China?

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Published June 05, 2024

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From virality to retail reality: Can global Gen Z brands crack China?