China's Consumers are Changing: Are Global Brands Keeping Up?

BEIJING – When China released its third-quarter economic data, one figure stood out: GDP grew 4.5 percent year on year, beating market expectations of 4.4 percent. Yet despite China’s continued economic growth, international coverage often focuses on cautious consumers, a sluggish property market and concerns about weak domestic demand.

Is China’s domestic market really as stagnant as these headlines imply?

Media commentary rarely tells the whole story. While household spending is undergoing genuine structural shifts, the sustained participation and multi-billion-dollar investments of global corporations at the China International Import Expo (CIIE) offer a far more telling perspective on the market’s real potential.

From a Bowl of Noodles to Global Business

As I outline these thoughts, I am standing in line at an eatery in Shanghai, waiting for a 20-yuan, or roughly 2.80-dollar, bowl of Guangxi rice noodles. Outside, customers are queuing for tables. Inside, I count at least 40 people eating, with more arriving about every half hour.

One busy restaurant cannot tell us how an entire economy is performing. But the scene is a reminder that everyday consumer activity can be more varied than the broader economic headlines suggest.

The challenge is to turn individual purchases into sustained domestic demand. That depends not only on consumer confidence and household spending, but also on whether businesses can offer products that people want to buy.

The CIIE provides a useful perspective on this relationship, bringing overseas suppliers together with Chinese buyers, distributors and investors. Its significance extends beyond the exhibition itself to the business relationships and commercial opportunities that may follow.

A Market Global Businesses Still Want to Reach

The scale of the CIIE reflects continued international interest in China’s consumer market.

For the ninth edition, exhibition space has exceeded 370,000 square meters for the first time. More than 300 Fortune Global 500 companies and industry leaders are expected to participate, while nearly 200 companies and institutions have attended every edition. More than 2,000 companies are also set to make their debut.

These figures do not prove that Chinese consumption is booming. Participation in a trade expo does not automatically translate into sales, and business interest alone cannot resolve concerns about household spending.

But the figures do suggest that international companies continue to see value in reaching Chinese consumers, understanding their preferences and building a longer-term presence in the market.

For some multinationals, that presence increasingly involves more than selling products. It can also mean developing new products, investing in research and building local capabilities that serve customers in China and potentially elsewhere in the world.

From Exhibition Booths to Long-Term Investment

The beauty industry offers one example of how the relationship between foreign companies and China’s market is evolving.

Stephane de La Faverie, president and CEO of The Estee Lauder Companies, has confirmed his attendance at the ninth CIIE, describing China as an increasingly important source of beauty innovation.

“We have been in China for more than three decades. China continues to set the pace for beauty innovation. We are proud to learn, innovate, and grow alongside this remarkable market,” he said.

“Today, it is also a source of talent, insight, and inspiration. What we learn here not only shapes how we serve our Chinese consumers, but also how we serve consumers around the world. This is why we will continue to invest here.”

According to the company, around 30 percent of its innovations for the Chinese market are developed locally. At the third CIIE, Estee Lauder signed an agreement to establish its first integrated global research and development center in Shanghai.

Healthcare offers another example of the connection between market access and long-term investment.

Lin Xiao, general manager of AstraZeneca China, has described the CIIE as both a platform for showcasing innovation and a catalyst for deeper investment. Earlier this year, AstraZeneca announced plans to invest 100 billion yuan, or more than 14 billion U.S. dollars, in China by 2030.

AstraZeneca’s planned investment reflects a commitment that goes beyond short-term sales. Expanding research, manufacturing and other local operations requires resources and a long-term business strategy. While an investment announcement does not guarantee commercial success, it offers a concrete indication of how the company views China’s future market opportunities.

How Smaller Brands Find a Route to Market

The opportunities are not limited to multinational corporations. Smaller foreign brands are also finding room in China’s consumer market.

Grin, an oral care brand from New Zealand, introduced a toothbrush range tailored to different age groups at last year’s CIIE. The products subsequently reached e-commerce platforms and offline retail channels, allowing consumers to buy them beyond the exhibition.

Liu Lipeng, head of Grin China, described the opportunity this way: “For a New Zealand SME like ours, the dividend of CIIE isn’t just a single order at an exhibition—it’s a clear trajectory: from exhibit to commodity, and from exhibitor to investor.”

Grin’s experience illustrates how international brands can seek opportunities in specific consumer needs rather than competing solely in mass-market categories. The key question is whether such products can attract sustained demand, but their expansion into retail channels shows how the potential of China’s consumer market can translate into commercial activity.

China’s Consumer Market Is More Than the Headlines Suggest

It is easy for superficial headlines to focus on property sector adjustments and conclude that Chinese domestic demand is frozen. But corporate actions speak far louder than media commentary. In a market of 1.4 billion people, consumers are becoming more selective, weighing price against quality and seeking products that meet their changing lifestyles. For businesses that adapt, vast opportunities remain.

A crowded Shanghai eatery, a record-breaking 370,000-square-meter trade floor, multibillion-dollar capital commitments from global biopharmaceutical leaders, and the expansion of foreign SMEs all point to one conclusion: China’s consumer market is evolving, not stagnating.

Converting market scale into sustained demand requires products, services, and innovations that align with shifting consumer expectations. As global corporations continue to invest billions to innovate and establish local R&D hubs, the verdict from the world’s leading companies is clear: the Chinese consumer remains an indispensable engine of global growth.

About the author:
Keyu Guo is a journalist at CGTN Radio, reporting on global affairs and stories at the intersection of culture and economic cooperation.