I have lived in Shanghai for more than 15 years. For most of that time, a logo did the selling. A French or Italian name on a bag was enough. In 2026, that is over. Chinese consumers still spend, and they spend on premium products. But they now ask one question first: is it really better?
The facts: quality first, logo second
On March 31, 2026, NielsenIQ released its 2026 China Consumer Landscape Report (2026年中国消费新图景报告). Digitaling published the key findings. Three numbers stand out:
- 81% of consumers say product safety and quality are the main reasons they accept to pay a premium.
- About 40% of consumers keep a cautious spending attitude, even when they feel good about their household finances.
- Reliance on price promotions is going down. People compare less on price, more on proof.
Consumption is also the main engine of growth: it contributed 82.5% of China’s GDP growth in the first half of 2025, according to the same report. So the money is there. It just goes to different places.
Where the money goes: Laopu Gold and local brands
The best example is Laopu Gold (老铺黄金). This Beijing brand sells handcrafted gold jewelry with traditional Chinese designs. Its revenue jumped from about RMB 8.5 billion (around $1.2 billion) in 2024 to roughly RMB 27 billion (around $3.8 billion) in 2025, as Luxury Tribune reported. In the same period, Bain estimates China’s personal luxury market shrank again.
Think about that. A local brand triples its sales while global luxury houses lose ground. Laopu now ranks among the top luxury players in mainland China by revenue.
The same shift shows in leather goods and apparel. Chinese brands with strong craft and good materials take share from mid-range foreign labels. Buyers no longer pay extra for a foreign name alone. They pay for leather quality, finishing, fit and after-sales service.
Why this is happening
I see four reasons, and our clients feel all of them.
- Trust. After years of food scandals and fake products, Chinese buyers want proof. Safety and quality are no longer “nice to have”. They are the entry ticket.
- Rational spending after the property crisis. Housing was the main savings tool for Chinese families. Prices fell. Households became careful. They still buy nice things, but every purchase must make sense.
- Guochao (国潮). National pride is real, especially for people under 35. Buying a Chinese brand with Chinese design is now a statement, not a compromise.
- Safe-haven value. Gold keeps value. A Laopu bracelet is jewelry and savings at the same time. A canvas bag with a big logo is not.
What this changes for “Made in France” and “Made in Italy”
My view is direct: the country of origin still helps, but it is no longer a proof. It is a promise. And Chinese consumers now check promises.
A French wine brand we work with learned this the hard way. For years, “Bordeaux” on the label was enough. Then sales dropped. When we looked at comments on Xiaohongshu, people did not attack the wine. They asked about the vineyard, the harvest, how to check the bottle was real. The brand had no answers online.
An Italian leather goods client had the opposite experience. They posted short videos of their workshop: the hides, the stitching, the craftsman’s hands. No big logo. Sales on their Tmall store grew in a year when many foreign brands went down.
The lesson: heritage sells when you show it. If you only claim it, a Chinese brand with better content will win. I wrote about this shift in our analysis of the rise of Made in China luxury labels.
How a foreign brand proves quality in China
1. Traceability you can scan
Put a QR code on the product. It should show origin, batch, factory, and a way to check authenticity. For food, cosmetics and alcohol, this is expected now. For fashion and jewelry, it is a strong edge.
2. Proof, not adjectives
“Premium” and “luxury” mean nothing to a buyer who has seen everything. Show certificates, lab tests, material sources, years of craft. Numbers beat adjectives every time.
3. Xiaohongshu content that answers real questions
Xiaohongshu (RED) is where Chinese consumers check products before buying. Search your brand there. Read the comments. Then create content that answers the doubts: behind-the-scenes, comparisons, care guides, honest reviews from real users (KOC), not only big influencers.
4. Service as a quality signal
Repair, warranty, fast customer service on WeChat. Laopu offers a lifetime cleaning service. That is part of why people trust it. Foreign brands can do the same.
If you sell jewelry or accessories, our guide on jewelry trends in China gives more detail on what works.
My take
This is not bad news for foreign brands. It is bad news for lazy foreign brands. Chinese consumers still like imported products, for good reasons. But the logo discount is finished. You now compete on the same field as Laopu Gold and the best guochao labels: craft, proof, and content.
At GMA, we help brands audit their image on Xiaohongshu, Douyin and Tmall, and build the proof content that Chinese buyers look for. If you want to know how your brand is perceived today, contact our team in Shanghai.
Question for you: if a Chinese consumer searches your brand on Xiaohongshu tonight, will they find proof of quality, or only your logo?
