Unlocking Brand Growth in China for 2025: The Dual Revolution of Instant Gratification and Experience Reinvention

I. Instant Retail: From “Fast” to “Faster” – Reshaping Consumer Scenarios

Explosive Growth and Accelerated Delivery

Between January and August 2024, China’s instant retail sector grew by 26.2%, vastly outpacing the overall retail sales growth of 3.4%. Platforms like JD.com and Meituan have pushed consumer expectations to new limits with “delivery in as little as 9 minutes,” driving a resurgence in front-loaded warehouse models (with Meituan deploying over 30,000 such warehouses nationwide).

Category Expansion and Higher Ticket Items

Instant retail has expanded well beyond food delivery into beauty, electronics, and other high-value categories. Meituan Flash Shopping sold 20 million facial mask packets in a single year, while gaming controller sales jumped 145% following the release of Black Myth: Wukong. Smartphone brands are even choosing delivery platforms for new product launches, highlighting the strategic value of instant retail channels.

Strategic Recommendation: Brands should develop instant retail strategies based on their specific category characteristics, such as launching new products through delivery platforms or developing emergency-scenario SKUs.

II. Offline Retail Renaissance: From “Traffic Hubs” to “Experiential Destinations”

Online Saturation Drives Offline Return

As online ROI in the beauty industry has plummeted to unprofitable levels, brands like Proya and Kans have revitalized their offline channels through specialty and experience stores to improve customer reach. Consumer interest in “offline experiences” has surged 58% year-over-year, particularly in beauty and fashion categories.

Store Upgrades: Creating Five-Sense Immersive Experiences

MINISO’s Chiikawa-themed pop-up store broke records with sales of 2.68 million yuan in a single day, while OPENRACK FLASH SALE attracted middle-class consumers to queue for limited-time discounts, validating the potential of scenario-based offline operations. Brands must transform stores from mere selling spaces into social check-in spots or themed experience venues.

Strategic Recommendation: Test offline waters through lightweight models like pop-up stores and themed exhibitions, or partner with local commercial districts to create differentiated experiences.

III. Product Strategy: From “Viral Hits” to “Classic Star Products”

Star Product Strategy to Combat Shrinking Markets

In 2025, brands need to shift from creating short-lived viral hits to developing long-term classic products. For example, Atour Planet has focused on “deep sleep scenarios” for its core products, abandoning multi-SKU strategies in favor of compound growth.

Horizontal Category Expansion and Repurchase Design

Leveraging star products to drive category extension—such as snack brands expanding from single hit products to comprehensive healthy snack portfolios—while incorporating membership systems to enhance user loyalty.

Case Study: Sam’s Club’s online revenue now exceeds 50% of total sales, demonstrating the effectiveness of combining star products with membership models.

IV. International Expansion: From “Testing Waters” to “Localized Deep Cultivation”

The Necessity of a Second Growth Curve

Brands like MINISO and Pop Mart have achieved breakthrough performance through overseas markets. MINISO replicated its fast-fashion model in Southeast Asia while incorporating local cultural elements into product design.

Digital Marketing Enables Localization

Utilizing platforms such as TikTok and YouTube Shorts for regional content distribution, combined with local KOLs and social commerce (such as Shopee Live in Southeast Asia) to improve conversion rates.

Strategic Recommendation: Brands expanding internationally must balance globalization with localization. For example, Haier optimized its product structure in Malaysia through digital marketing to meet regional demands.

V. Technology Drivers: AI Evolves from “Tool” to “Strategic Partner”

Generative AI Enhances Creative Efficiency

While 54% of advertisers use AI tools weekly, only 28% apply them to marketing scenarios. Looking ahead, 41% of companies plan to implement AI in intelligent ad placement, consumer insights, and content distribution. Generative AI can rapidly produce short video scripts or personalized advertising materials, reducing creative costs.

Conversational AI Transforms User Interaction

Smart customer service and chatbots improve service response times through semantic analysis. When combined with knowledge graphs to optimize consumer intent recognition, these technologies drive sales conversion.

Challenge: Data silos and insufficient cross-departmental collaboration remain core obstacles to AI implementation, with 73% of companies needing to directly link marketing KPIs with business growth.

VI. Future Strategy: Balancing “Immediate” and “Long-term”

Dual-track Approach: Instant Retail and Brand Building

While instant retail satisfies short-term sales objectives, brands must accumulate long-term value through content marketing (such as scenario-based short videos and brand-owned broadcasting). For example, HeyTea strengthened brand loyalty against market trends through its open letter “Returning to Users and Brand.”

Data Integration and Agile Response

Establish cross-departmental data platforms to track consumer feedback from instant retail and offline experiences in real-time, enabling rapid strategy adjustments. For example, use AI to analyze social media sentiment and dynamically optimize advertising placement.

Conclusion

The Chinese digital marketing battlefield in 2025 represents a dialectical interplay between “fast” and “slow,” “online” and “offline,” “short-term” and “long-term.” Brands that successfully navigate these contradictions will discover new paths to sustainable growth in an increasingly complex market environment.