The Rise of Niche Brands in China: Targeting Gen Z and Millennials
Niche brands in China are experiencing rapid growth, largely due to digital marketing strategies perfectly tailored to the expectations of Gen Z and Millennials, who seek unique products and personalized experiences.
China is becoming the go-to playground for niche brands specifically targeting the Gen Z and Millennial generations.
The Differences
Gen Z (Generation Z):
Gen Z refers to people born between 1997 and 2012. This generation is the first to grow up in a fully digital world, with constant access to the internet and social media. They are known for being highly visual, seeking authentic experiences, and are influenced by values like diversity, inclusivity, and sustainability. When it comes to consumption, they prioritize individuality and authenticity in brands.
Millennials:
Millennials, born between 1981 and 1996, are the generation that experienced the transition from the analog to the digital world. They grew up with the advent of the internet, social media, and smartphones. Millennials are often characterized by their desire to balance career and personal life, and their strong interest in experiences rather than material possessions. They seek brands that share their values, particularly in terms of social and environmental responsibility.
These two demographic groups, deeply connected and influenced by digital culture, are rapidly redefining the Chinese market.
But why are these young generations becoming prime targets for niche brands? And how are these brands managing to establish themselves in such a competitive market?
A New Era for Niche Brands
Niche brands are businesses that focus on a specific market segment, often offering highly specialized products or services but with strong and targeted demand. In China, these brands have gained traction in recent years, supported by a young and hyper-connected audience.
Chinese Gen Z and Millennials are savvy consumers with precise expectations when it comes to quality, customization, and the shopping experience. Unlike previous generations, who favored large international brands, these young generations are drawn to brands that speak directly to them, offer unique products, and are perceived as authentic.
Strong Values and a Clear Identity: What Chinese Young Consumers Are Looking For
Chinese Gen Z and Millennials are not just attracted to price or quality. They are primarily motivated by deep values and a sense of purpose. These generations are heavily influenced by concerns such as sustainability, ethics, inclusivity, and social responsibility. They want to consume more thoughtfully and feel closer to brands that share these values.
As we can see, “slow fashion” (consuming better) is growing rapidly in China: Article on slow fashion in China
Therefore, a niche brand in China must adopt a clear and sincere stance. Young consumers have become highly sensitive to superficiality. They are looking for brands that don’t just communicate values through marketing but embody them in their products, manufacturing practices, and even in their communication.
The Rise of Digital Platforms
The young generations in China are hyper-connected and spend a large part of their day on digital platforms. It is essential for niche brands to connect with their audience through the right platforms. Social media and messaging apps dominate the Chinese digital landscape, and apps like WeChat, Douyin (the Chinese version of TikTok), Xiaohongshu, and Weibo have become essential channels for reaching and engaging young consumers.
Niche brands in China are leveraging these platforms to build strong and increasingly loyal brand communities. For example, on Xiaohongshu, young users actively share product experiences and recommend brands they perceive as authentic. This phenomenon gives brands the opportunity to reach a targeted audience and engage in direct conversations with consumers.
Take a look at our article on the top 35 social networks and platforms to use in China.
Key Trends in Niche Brand Marketing in China
The Importance of Customization
Young generations want to stand out from the crowd and desire products that express their individuality. Customization has therefore become a major trend. Niche brands that successfully carve out a space in the Chinese market offer products that can be tailored, customized, or even co-created with the brand.
This can range from the customization of physical products like clothing, accessories, or shoes, to personalized service experiences, such as design choices or unique color options. The key for a niche brand in China is to understand that young generations don’t just want to buy a product—they want to experience something unique that sets them apart from others.
Li-Ning – Customizing Sneakers
One of the brands that has perfectly grasped this trend is Li-Ning, a major player in the sports sector in China. Last year, the brand launched a sneaker customization service, where consumers could choose not only the color and patterns of their shoes but also add unique elements like initials or numbers. This initiative was a huge success, particularly among young urban consumers who are looking for products that stand out from the crowd.
Check out the brand Li-Ning, a pioneer in sneaker customization in China.
The Impact of Influencers
Click here if you want to understand how influencers and KOLs work.
The role of KOLs (Key Opinion Leaders) or influencers in China is crucial in niche brand strategies. In China, influencers don’t just promote a product—they embody the brand’s values and become the true ambassadors of a community. Niche brands use KOLs to create authentic partnerships and campaigns that speak directly to young generations.
Influencers play a key role in attracting and retaining this clientele. In fact, these young consumers rely more on recommendations from their favorite influencers than on traditional advertisements. For a niche brand targeting Gen Z and Millennials, partnering with local influencers on platforms like Weibo, Douyin, or Xiaohongshu can be a powerful lever to boost brand awareness and drive sales.
See the Forbes ranking of influencers in China (Dior, Chanel, Nike…).
Social Commerce
Social commerce is booming in China. Live-streaming platforms like Taobao Live and Douyin allow brands to sell their products directly through live videos. Young consumers are more likely to purchase products they discover during live-streaming sessions, where interaction with the seller or influencer happens in real-time. Niche brands that successfully leverage these social commerce technologies can generate direct engagement and instant sales.
Understand how these social commerce platforms work and learn which ones to choose.
This allows young consumers not only to discover niche products but also to interact with content creators and ask questions live, making the buying process much more interactive and transparent.
A Growing Opportunity
Chinese niche brands are rapidly expanding due to the changing expectations of young generations.
Chinese Gen Z and Millennials demand products that align with their personal values, and these brands have figured out how to meet those needs. By leveraging authentic strategies, strong social values, and innovative digital presence, these brands are succeeding in a highly competitive Chinese market.
Niche brands must continue to innovate, adapt to the new expectations of young generations, and use the digital tools at their disposal to create unique experiences. Those who manage to establish an authentic emotional connection with this dynamic youth will have the best chance to thrive in this increasingly digital and demanding market.
