What Does It Really Take for French Brands to Win in China in 2025?

For many years, foreign companies entering China benefited from what might be called the “country-of-origin premium”—the assumption that products from France, Italy, Switzerland, or other Western markets were inherently superior. Simply signaling European heritage was often enough to generate meaningful sales.

By 2025, this dynamic has fundamentally changed.

Chinese consumers are highly informed, increasingly pragmatic, and significantly more demanding. Meanwhile, domestic competitors have closed the quality gap and frequently outperform international counterparts in speed, pricing, and user-centric innovation.

The result: Country-of-origin alone no longer confers a competitive advantage. Brands must demonstrate true differentiation to justify their relevance in China’s hyper-competitive landscape.

A Brand Should Meet At Least 3 of the 5 (Ideally All)

1. Demonstrated Product-Market Fit Outside China

A product should be validated in international markets, typically generating USD 20M+ annually, and preferably exceeding USD 50M+. Brands lacking proven traction elsewhere rarely succeed in China, where competitive intensity is dramatically higher.

2. Meaningful Differentiation

According to AlixPartners, by 2025 Chinese consumers prioritize:

• Price (20%)

• Product functionality (20%)

Meanwhile, country of origin accounts for only 11% of purchase considerations. This indicates a structural shift toward value-driven, functionality-first purchasing behavior. A foreign brand must therefore offer measurable advantages—not perceived ones.

3. Storytelling Capability Aligned to Local Culture

Senior leadership must be able to articulate a clear, compelling brand narrative and invest time in localizing this story for Chinese consumers. Effective storytelling remains a decisive factor in early awareness and consideration.

4. Adaptability to Local Consumer Preferences

Directly replicating overseas branding, packaging, or go-to-market strategies is insufficient. Winning in China requires local insight, rapid iteration, and culturally relevant communication.

5. Adequate Capital and Inventory Resources

China is no longer a low-cost experiment. A successful entry demands substantial inventory reserves, marketing investment, and operational support.

Despite being seemingly intuitive, these conditions are often ignored, leading to premature launches and costly failures. Once a brand is properly positioned, it must choose between low-risk and high-risk market entry strategies.

Part I: Low-Risk Approaches — Effective for Market Validation

Low-risk approaches require limited financial and operational commitment. While they do not drive large-scale revenue, they offer a controlled environment to test demand and refine strategy.

REDnote Store

• Risk profile: Low

• Operational requirements: Minimal

• Cost structure: USD 3,500 refundable deposit 5% commission 0.7% transaction fee

SaaS integrations allow seamless syncing from Shopify, Magento, Wshop, or Prestashop, enabling delivery directly from European inventory.

Advantages

• Suitable across categories

• Low upfront investment

• Full brand ownership and operational control

Limitations

• Requires ongoing content-driven marketing

• Strong local partners are essential for influencer and livestream operations

Why REDnote Has Become a Strategic Testing Ground

REDnote integrates social discovery with seamless in-app purchasing. Consumers can move from content to checkout without leaving the platform.

2024 performance indicators:

• New buyers: +8.1×

• Livestream purchasers: +3.4×

• Brand–creator partnerships: +2.7×

Notably, 67% of the platform’s top 100 sellers have fewer than 500,000 followers, highlighting the effectiveness of niche creators in driving sales.

Part II: High-Risk Approaches — Required for Scalable Growth

By 2025, low-risk strategies rarely produce meaningful market penetration. Brands seeking accelerated growth must consider Douyin and Tmall, China’s two dominant commerce ecosystems.

Douyin and Tmall Flagship Stores

• Risk profile: High

• Requirements: Strategically committed brands

• Cost: Minimum investment of USD 500,000 in year one; USD 1M+ is common

Advantages

• Maximum control over brand, customer data, and marketing

• High-volume scalability

Drawbacks

• High operational complexity

• Significant financial burden

Critical Realities

• Livestreaming is mandatory

On Douyin, livestreaming accounts for over 50% of platform sales. Brands must operate daily livestreams to maintain visibility.

• Influencer marketing is costly

Cost per view is substantially higher than on REDnote. Premium creators command premium pricing.

• Service providers are expensive

Top-tier Tmall Partners (TPs) or Douyin Partners (DPs) can charge USD 10,000 or more per month.

• Achieving break-even is extremely challenging

In 2025, most brands treat Douyin/Tmall as long-term strategic investments—not short- term profit drivers—typically as the foundation of a broader omnichannel strategy including offline retail.

Local Distributors

• Risk profile: Extremely high

• Requirements: Exceptional brand performance globally and strong China traction

• Cost: While distributors shoulder parts of launch costs, brands must still invest heavily in inventory, marketing, and staffing.

Advantages

• Potential for rapid expansion

• Partial cost-sharing

Risks & Limitations

• High-quality distribution agreements are rare

• Significant loss of brand and operational control

• Contractual and strategic misalignment can cause long-term damage

• Typically suited for later-stage expansion rather than market entry

Conclusion

China Remains a High-Potential Market—But Requires a New Playbook

Entering China in 2025 continues to offer exceptional long-term upside. However, the environment is dramatically more competitive than in 2005. Consumers are more rational, domestic competitors stronger, and the cost of entry significantly higher.

Success now requires:

• Authentic differentiation

• Disciplined preparation

• Sufficient capital

• A deliberate choice between low-risk testing and high-risk scaling paths

China remains a market of immense opportunity—but only for brands that bring real value, not just foreign labels.