How China’s KOLs are adapting to trade war fallout

China’s influencer marketing landscape in 2025 is evolving under mounting global economic and geopolitical pressures. As the U.S. reinstates steep tariffs on about $18 billion worth of Chinese imports, ranging from tech components to consumer products, the ripple effects are being felt across industries. Bracing for supply chain disruptions and rising costs, brands operating in China are reassessing their strategies. This atmosphere of caution has directly impacted influencer marketing, with even top-tier Key Opinion Leaders (KOLs) facing shrinking brand budgets and a shift toward outcome-driven campaigns. Drawing on insights from the newly released “China Mega Report 2025” by digital consultancy ChoZan, this article explores how brands can navigate this climate by understanding the evolving role of KOLs and deploying more strategic, performance-oriented influencer marketing tactics. The economic context: Headwinds for KOLs and brands Many KOLs, once commanding high fees, are now earning less as brands cut budgets in light of China’s slowing economy and weaker consumer spending. With sales declining across many sectors, brands are increasingly moving toward fee-plus-commission arrangements, where KOLs earn a base fee supplemented by a percentage of sales generated through their promotions. While this results-driven model aligns with brands’ desire for measurable ROI, it has created significant challenges for influencers. When sales are low, KOLs see a substantial drop in income, making it harder for them to sustain their operations. Amid these challenges, many KOLs are pivoting to create their own brands. Platforms like Xiaohongshu (RedNote) have become central to this trend, with influencers leveraging their loyal followings to sell their own products through livestreaming. This move offers greater independence and a more stable income, but also makes KOLs less inclined to promote external brands when they can prioritize their own products. The rise of KOCs: Authenticity in the spotlight As KOLs pursue their own ventures, another group is gaining ground: Key Opinion Consumers (KOCs). Unlike KOLs, who often showcase aspirational lifestyles, KOCs are everyday consumers who connect with audiences through relatability and authenticity. KOCs excel at grassroots marketing, fostering trust and building organic buzz around products. For instance, skincare brand iS Clinical leveraged KOCs for its soft launch in China. By enlisting existing brand advocates to share genuine experiences, the brand cultivated a loyal customer base without heavy ad spend. This dual-track strategy — using KOLs for broad visibility and KOCs for authentic engagement — is becoming the gold standard for influencer marketing in China. Meet the KOEs: Key Opinion Employees In 2025, you’d be hard-pressed to find a successful brand in China that does not have Key Opinion Employees (KOEs). These full-time employees not only work for a brand but also leverage their personal influence and credibility to promote the company’s products. KOEs engage in activities like livestreaming, sharing behind-the-scenes content, and showcasing their expertise, blending their professional role with their personal brand. This approach offers brands a cost-effective way to build authenticity and trust, as consumers increasingly value real people over polished advertisements. KOEs also strengthen connections with audiences by presenting a relatable, human face behind the brand, making them a crucial element of modern marketing strategies in China. It’s no surprise, then, that brands often choose to invest more in KOEs when they can. Why strategic investments in KOLs are still crucial in 2025 KOLs remain a vital tool for brands looking to connect with Chinese consumers — the key is to invest in these partnerships strategically. Here’s how brands can navigate this evolving landscape: 1. Focus on high-impact collaborations Quality over quantity is the mantra for 2025. Rather than spreading budgets thin across multiple influencers, brands should focus on partnering with a select few KOLs who align closely with their target audience and brand values. These high-impact collaborations can drive meaningful engagement and better ROI. 2. Build long-term relationships In an era of economic uncertainty, long-term partnerships with KOLs can yield better results than one-off campaigns. By working consistently with a trusted influencer, brands can foster deeper connections with their audience and cultivate loyalty. 3. Leverage livestreaming on fee-plus-commission model Livestreaming remains a powerful tool for driving (discounted) sales in China. Many KOLs are experts at engaging their audiences through live events, particularly on platforms like Douyin and Xiaohongshu. Brands should prioritize collaborations that incorporate livestreaming to maximize real-time interaction and conversion rates. While results-based partnerships are becoming more common, brands must strike a balance. Offering a reasonable base fee alongside performance incentives can ensure that KOLs remain motivated and invested in the campaign’s success. 4. Tap into KOL-owned brands If a KOL has their own brand, consider collaborating on co-branded products or limited-edition releases. This strategy taps into the influencer’s established credibility, aligning with their personal brand and creating a win-win situation for both parties.

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How China’s KOLs are adapting to trade war fallout