China’s Global Expansion Trends: Latest Trends and Insights

THE RISE OF GLOBAL PROMOTION BY CHINESE BRANDS

With rapid economic development and industrial upgrades, Chinese brands are gaining increasing influence in global markets. Companies like Huawei, Xiaomi, Alibaba, and Tencent have already established significant international presence. Now, more and more Chinese small and medium-sized enterprises are expanding overseas, seeking to capture a share of the global market.

These brands face various challenges in their global promotion efforts, including language barriers, cultural differences, and diverse market environments. To address these issues, many Chinese brands are partnering with Western influencers, leveraging their influence and reach for market promotion. This collaboration not only helps brands quickly penetrate new markets but also allows them to more precisely target their audience.

OPPORTUNITIES FOR SHORT VIDEO CREATORS

Increased Revenue

Chinese brands need high-quality short video content for their global promotions, providing numerous commercial collaboration opportunities. Creators can earn substantial income through ads, product placements, and brand endorsements. According to Influencer Marketing Hub, the average income for top influencers exceeded $100,000 in 2023, with this number expected to grow.

Expanded Influence

Collaborating with well-known brands not only brings financial benefits but also boosts a creator's influence and visibility. This win-win partnership helps creators quickly gain more followers and enhances their industry status and authority.

Creative Freedom and Diversity

The diverse needs of brand promotions offer creators ample creative space. They can integrate their unique style and characteristics into the promotional content, making it engaging and attractive. This creative freedom and diversity not only improve content quality but also enhance viewer experience

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Dark Horse of the Earphone Market? How Soundcore Captures Hearts

In the fast-changing audio market, competition among headphone brands is intense, and consumer preferences are constantly evolving. Yet, Soundcore has quickly emerged as a standout with its unique tech innovations and top-notch user experience. Let's dive into why Soundcore shines in the headphone market, capturing the hearts of users worldwide, and the hidden opportunities behind its success.

Innovative technology leads the trend

Soundcore distinguishes itself in the competitive market through its continuous pursuit of technological innovation. In 2019, it launched the Liberty 2 Pro, the world's first true wireless earbuds with Astria Coaxial Acoustic Architecture (ACAA), significantly boosting audio quality. Soundcore is dedicated to providing the best listening experience through technological breakthroughs, establishing itself as a major player in the audio industry.

High cost-performance ratio wins favor with users

In the competitive audio market, value for money is a key factor in attracting consumers. Soundcore's products, such as the Liberty 2 Pro and the Space One headphones launched in 2023, offer excellent sound quality and noise-cancelling features at a relatively affordable price. This high-value strategy has helped Soundcore build a strong reputation and attract a large base of loyal users.

Brand Influence and Global Expansion

Soundcore's brand influence is evident not only in its innovative products but also in its global expansion strategy. Soundcore products are sold in over 50 countries across all five continents, with more than 20 million users. Collaborations with local influencers have drawn significant attention on social media. For example, on TikTok, Soundcore has 224,000 subscribers and nearly a million likes. This successful social media strategy has further boosted Soundcore's brand influence.

User Reputation and Industry Recognition

According to the 2023 industry report, Soundcore achieved 1.5 billion in revenue in the first half of last year, making up 22.12% of Anker's total revenue. This result clearly shows Soundcore's leading position in the audio market.

In conclusion, through technological innovation, high value for money, and a strong global presence, Soundcore has captured consumers' hearts and become a dark horse in the headphone market. For video creators, partnering with Soundcore offers abundant opportunities for content creation. Its success provides a platform to showcase innovative technology, grow audiences, and enhance brand influence. Creating videos about Soundcore can attract viewers interested in audio products and leverage Soundcore's global presence to boost their international impact.

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Going global has become a consensus among Chinese enterprises

In recent years, with profound changes in the global economic landscape, geopolitics, trade rules, and market environment, more and more Chinese companies are actively expanding their overseas markets, seeking broader development space and business opportunities.

Enterprises and products that have gone out of China include both highly technological and down-to-earth categories. In the former, various professional rigging such as Juli rigging are used for the separation of steel cables during the launch of the Shenzhou-19 manned spacecraft, and have been applied in multiple overseas projects such as the 2022 Qatar World Cup main stadium, the Dubai Eye flywheel in the United Arab Emirates, the Pakistan port terminal, and the Maldives China Malaysia Friendship Bridge. Juli Rigging has formed a marketing service network covering 7 major markets including China, Europe, America, Australia, Japan, South Korea, and Southeast Asia.

Among the latter, since 2008, Huaihai Holdings has exported its "Three Bounces" (tricycles) to over 120 countries. Since 2024, the Chinese electric "Three Bounces" have become popular overseas and have been well received by consumers in many countries. In the United States, the price of a Chinese "Three Bounces" can even exceed $10000. An Guichen, Vice Director of Huaihai Holdings Group, stated that the new trend of the industry going global shows that companies, including Huaihai Holdings Group, are adopting a "group" model when developing overseas, unlike in the past when manufacturing and exporting complete vehicles domestically.

According to the 2024 interim report, as of August 31, 2024, there were 5340 listed companies in Shanghai, Shenzhen, and North China. 3300 companies with overseas operations. In the first half of the year, listed companies achieved overseas business revenue of 3.83 trillion yuan, a year-on-year increase of 12.84%, with a growth rate increase of 9.93 percentage points. Overseas business revenue accounted for 10.98%, an increase of 1.39 percentage points. Among them, the overseas business revenue of the manufacturing industry increased by 11.61%, with a growth rate of 7.57 percentage points, accounting for 18.91%, an increase of 1.73 percentage points.

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Temu increases import fees by about 145%: prices of many goods have more than doubled

According to CNBC, in response to US President Donald Trump's tariff policies, Chinese electronics retailer Temu has started increasing import fees by approximately 145%.

These fees began to appear over the weekend after the price increase took effect last Friday, and their prices exceeded the price of a single product purchased by consumers, possibly more than twice the price of a regular order.

For example, a CNBC analysis shows that Temu's previous summer outfit, priced at $18.47 plus an import fee of $26.21, was actually sold for $44.68, with a markup rate of 142%.

A children's swimsuit priced at $12.44, with an additional import fee of $18.68, would cost $31.12, with a markup rate of up to 150%.

A handheld vacuum cleaner priced at $16.93, with an additional import fee of $21.68, would cost $40.11, with a markup rate of approximately 137%.

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Chinese overseas brands quietly make big profits

CBNData sees that as Chinese brands bid farewell to the early stages of product and software going global, they are beginning to demonstrate a more proactive and in-depth offensive posture in the global market.

In terms of platforms, China's cross-border e-commerce "Four Little Dragons" Temu SHEIN、TikTok Shop、 AliExpress is intensifying its efforts to seize the global market. In September 2023, TikTok officially launched its e-commerce service in the United States, with a daily transaction volume rapidly exceeding $10 million (approximately RMB 72 million). According to 36Kr, TikTok's e-commerce business has set a GMV target of $50 billion (approximately RMB 357 billion) for 2024; In the third quarter of 2023, Pinduoduo's revenue scale increased by over 90% year-on-year, with its cross-border e-commerce platform Temu becoming the largest source of incremental revenue.

At the same time, Chinese brands are also actively "going global". Meixue Ice City has opened its stores on the streets and alleys of Indonesia. As of October 2023, Meixue Ice City has 4000 stores overseas, an increase of nearly 3000 stores in a year. Following closely behind are many tea and coffee brands such as Heytea, Bawang Tea Lady, and Kudi; BYD, Wuling, NIO and other Chinese new energy vehicles are popular in the Middle East, Southeast Asia and other regions, opening up a new energy practice of overtaking established car companies such as Europe, America, Japan and South Korea in overseas markets.

Local politics, climate change, inflation and other global challenges have occurred one after another, but Chinese brands have taken new steps in the journey of globalization. In this macro context, CBNData, the first financial data center, has released the 2023 China Brand Overseas Volume List for the first time. Based on the public data weighted ratings of nearly 10000 Chinese overseas brands in more than ten industry categories covered by the OneSight marketing cloud database on mainstream social media platforms such as Facebook, Instagram, and X (formerly Twitter), an annual volume total list and five category volume lists have been released to comprehensively evaluate the influence of Chinese brands on overseas social media in 2023, roughly depicting the overseas landscape of Chinese brands.

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