How Has China’s Market Changed and How Should European Brands Adapt in 2026?

Over the past few years, China’s consumer landscape and digital ecosystem have transformed at high speed. For European brands hoping to enter or expand in China, “what used to work” is now very different from the strategies that succeed today.

Below is a clear comparison of what used to work and what works now, plus practical suggestions for today’s market.

(1) the major shifts in the market,

(2) the typical strategies European brands used in earlier years (around 2015–2019),

(3) the strategies that now dominate (2020 onward),

What Changed in China’s Market

1. Rise of social commerce & livestreaming

   Short video, livestreaming, and integrated “content → purchase” journeys have reshaped the way consumers discover and buy.  Platforms like Douyin and Xiaohongshu (REDnote) allow content to turn directly into purchases via integrated shopping features.

2. Rapid growth of cross-border e-commerce

   Eased policies and expanding pilot zones have lowered the entry barrier for overseas brands testing the market.

3. Younger, more segmented consumers

   Chinese consumer groups have become more segmented. Gen Z and the “new middle class” prefer social, content-driven, and experience-oriented consumption. They are more sensitive to brand authenticity, value-for-money, immediacy, and community identity. Research from Bain shows that consumer behavior in China’s FMCG and other sectors continues to evolve rapidly.

4. Tighter regulations & tougher competition

   Compliance, IP protection, and platform rules are increasingly importan. Beyond platform regulations, there are ongoing discussions around tariffs, product compliance, intellectual property protection, and the regulation of low-priced, high-volume cross-border goods. Meanwhile, the EU is also imposing reverse regulatory pressure on certain Chinese products. All of this makes channel selection and compliance increasingly critical.

The Old Playbook (2010s–2019): Brand-First, Channel-Driven

In past years (especially between 2015 and 2019), European brands entering the Chinese market typically followed a few common approaches:

• Tmall/JD flagship store first — building a polished online presence and treating major platforms as the core sales engine.

• Heavy reliance on top KOLs & traditional PR — focusing on storytelling and “European craftsmanship” branding.

• Offline retail experience — pop-ups, department stores, and boutique networks in Tier-1 cities.

• Local distributors or agents — managing compliance, logistics, and retail expansion on behalf of the brand.

Overall style: slower localization, strong emphasis on brand image, and long-term channel building.

The New Playbook (2020–Now): Content-Driven, Fast Iteration

Today, European brands that succeed in the Chinese market tend to adopt more flexible, content-driven and data-driven strategies, including:

1. Content and social traffic first

   Focusing on short videos, seeding posts (such as REDnote/Xiaohongshu-style content), and using livestreaming as a short-cycle sales driver. High-frequency content seeding combined with KOC (Key Opinion Consumer) collaboration is replacing the older model of relying solely on big KOLs. Social content now forms a complete “reach → engagement → conversion” loop.

2. Cross-border channels for market testing

   Many brands first test the market through Xiaohongshu Global, Tmall Global, or bonded cross-border warehouses. Compared with investing directly in a local legal entity, this approach offers a more manageable pace, allows them to evaluate how well their products resonate with Chinese consumers, and enables rapid data-driven adjustments.

3. Faster localization and product adaptation

   Everything from product flavors, formulas, and packaging language to marketing calendars (festivals, sale seasons) requires more detailed adaptation for Chinese consumers. Younger audiences prefer concepts that are “locally relevant yet still authentically European.”

4. Private traffic & OMO retail

   Online and offline channels are integrated more tightly—such as livestream-to-store appointments or using experience stores to create content scenarios. At the same time, brands invest heavily in private traffic (WeChat communities, mini-programs, membership systems) to increase repurchase and lifetime value.

5. Agile supply chain & data-driven decisions

   Faster replenishment cycles, real-time advertising optimization, and quick SKU iteration are now essential.

6. Sustainability & transparency as differentiators

   Chinese consumers increasingly value corporate responsibility and product quality. European brands can leverage sustainability and transparent supply chains as differentiators—but they must communicate these messages in a relatable and verifiable way.

Practical Advice for European Brands

• Start with cross-border + content seeding to test pricing, demand, and product-market fit.

• Treat livestreaming as a long-term channel, not just a promotional event.

• Localize while keeping core brand DNA to balance authenticity and relevance.

• Invest in private traffic & retention, not only platform traffic.

• Strengthen compliance, IP protection, and multi-channel logistics.

• Operate with weekly iteration cycles driven by content performance and real-time consumer behavior.

Conclusion: From “Entering” to “Thriving”

The traditional model of “flagship store + distributor + department store” once helped European brands build awareness and achieve initial sales in China.

But in today’s fast-changing environment, this approach is often too slow and too costly. The real winners now are the teams that excel in content ecosystems, data-driven operations, localized supply chains, and compliance. They test quickly through cross-border channels, build trust through social content, and retain and monetize customers through private-traffic and localized operations.

For European brands, China is no longer just a market to enter—it’s a market to adapt to continuously.