About this series

The WARC Spotlight China series focuses on a timely industry topic facing brands in the market. It comprises a capsule collection of commentary, tackling the topic from a range of angles. Contributors to the series are industry experts with first-hand knowledge of the market in focus, offering current on-ground insights to what’s working or developing.

Spotlight: China's growth equation evolving to retention & always-on marketing

Local marketing is now in a much more mature and competitive phase due to declining population growth in China, sparking the saying of "the end of demographic dividends". National Development and Reform Commission (NDRC) statistics show that retail sales remain below 2019 levels. Nielsen's survey reveals that 32% of Chinese consumers prioritize financial security in 2023. Brands, both major and lesser-known, are targeting lower-tier cities in China for growth and shifting from traffic-focused to brand-building strategies on digital platforms. However, even in the absence of unfavourable external factors, attracting customers without retaining them is a futile endeavour, and it contradicts the fundamental principles of marketing. Whether the saturated China market has peaked depends on brands identifying gaps, addressing unmet needs, and implementing innovations. If done right, there's still room for growth.

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