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27 March, 2025

Beyond Nezha: How Cultural Confidence is Redefining ‘Made in China’

The 2019 animated blockbuster Ne Zha (哪吒) wasn’t just a film—it was a cultural earthquake, earning over $700 million and proving China’s storytelling prowess. Its 2024 sequel, Nezha 2: The Legend of Red Lotus, shattered expectations, grossing $850 million globally in its first month. Beyond dazzling visuals, the franchise embodies China’s dual ambition: to reinterpret its myths for modern audiences and inspire brands to weave heritage into global strategies. As Nezha’s creator, Yang Yu, stated, “Our stories are no longer just for China—they’re conversations with the world.”

Guochao 2.0: From Fashion to Gold, How Heritage Drives Modern Consumption

The guochao (“national trend”) movement has transformed industries from automotive to jewelry, with brands redefining identity through rich historical narratives. In 2023, guochao-related GMV on Alibaba reached $58 billion, a staggering 220% increase from 2020. A McKinsey survey revealed that 78% of Chinese consumers under 30 now favor brands incorporating cultural elements, up from 42% in 2018.

However, foreign brands face significant challenges. Once-dominant names like Gap and H&M have struggled in China, unable to adapt to the rising prominence of guochao trends.

Fashion

  • ZHIZHI: This rising star blends Tang Dynasty embroidery with streetwear, selling over 200,000 units of its “Phoenix Revival” jacket in 2023.
  • ICICLE: Known as “China’s Loro Piana,” ICICLE uses Himalayan yak wool and plant-dyed silks, appealing to luxury buyers who value “quiet prestige.” Its revenue surged 40% year-over-year in Europe.
  • Anta Sports: Having surpassed Nike in China’s market share, Anta acquired Fila’s China rights and integrates dragon motifs into its designs, resonating strongly with Gen Z.

Taobao’s Indie Designers

Platforms like Taobao host over 30,000 independent designers. Brands such as Swaying Knit—inspired by Song ceramics—started online and have since expanded to over 50 offline stores.

Luxury Reimagined

  • TO SUMMER: Collaborated with the Dunhuang Mogao Caves to create a perfume line inspired by 1,000-year-old fresco scents. The collection sold out within 72 hours.
  • Laopu Gold: This jewelry brand’s “Han Dynasty Heirlooms” collection, featuring 24K gold hairpins modeled after Tang relics, saw sales triple in 2023.

Automotive

  • NIO: The automotive giant integrates Suzhou garden aesthetics into its showrooms and offers “Chinese Zen” interior trim options. Remarkably, 70% of its European buyers cite “cultural uniqueness” as a key purchase driver.

This structured evolution of guochao showcases how heritage is reshaping modern consumption, creating opportunities for domestic brands while challenging global players to adapt to new cultural expectations.

Post-00s: The Generation Redefining “Made in China”

China’s Gen Z isn’t just buying local—they’re evangelists. A 2024 Tencent survey found:

  • 82% of post-00s believe “Chinese brands equal or surpass foreign ones in quality.”
  • 75% actively share domestic brands on social media, compared to 33% for foreign labels.

Post-00s consumers are driving this growth. A 2023 Bain report noted that 68% of Chinese teens prioritize local brands over foreign ones—a stark reversal from a decade ago, when global labels dominated.

Favoured by the young generations:

  • Mixue: The $1 ice cream chain became a TikTok sensation in Indonesia, with 80% of its Southeast Asian customers under 25. With 20,000 global outlets, its $1 ice cream and peony-themed stores have made it a regional phenomenon.
  • CHAGEE: Positioned as the “Oriental Starbucks,” this tea chain offers drinks served in Tang Dynasty-inspired porcelain. It drove 90% of its Malaysian sales from Gen Z and operates over 800 stores in Southeast Asia, rivaling Starbucks in Malaysia and Thailand.
  • HEFANG Jewelry: Known for modernizing traditional Chinese wedding motifs, 60% of its buyers are post-00s brides.

Redefining Luxury: When Heritage Meets High Fashion

Chinese luxury is no longer about logos—it’s about legacy.

  • SONGMONT: Its Lunar Rabbit bag, featuring Ming-style cloisonné, sold out in Paris within hours. CEO Xiao Xiao notes, “Luxury is about storytelling, not just craftsmanship.” Known for its “East-meets-West” handbags, the brand’s European sales grew 200% year-over-year after opening its first Paris pop-up in 2024.
  • TO SUMMER: Collaborated with the Palace Museum to recreate Empress Dowager Cixi’s rose fragrance, priced at $380 per bottle. The line outsells Jo Malone in China.
  • Anta Sports: Its “Tian Gong” sneaker line, inspired by ancient architecture, commands a 300% price premium over Nike in secondary markets.

Foreign Brands

Foreign brands are taking note. Louis Vuitton’s 2024 Qixi collection incorporated Suzhou embroidery, but critics deemed it “superficial” compared to homegrown designs.

Reshaping Global Competition: The New Rules of Engagement

Chinese brands are rewriting the global playbook. Unlike earlier generations that competed on price alone, today’s leaders emphasize cultural differentiation.

  • HEFANG Jewelry: Its modern reinterpretation of traditional hairpins has disrupted Europe’s accessories market.
  • DJI: The tech giant dominates global drones by pairing innovation with Chinese aesthetic principles.

Lessons for Foreign Brands

  • Avoid Tokenism: Coach’s 2023 partnership with Moutai (a baijiu brand) flopped, deemed “inauthentic” by young consumers.
  • Invest in Cultural R&D: ICICLE allocates 15% of revenue to reviving ancient textiles, while Huawei’s Watch GT 4 incorporates porcelain dials crafted by Jingdezhen artisans.

The Empire Strikes Back

The Nezha phenomenon is more than just a film—it’s a symbol of China’s cultural and commercial renaissance. Brands like SONGMONT and CHAGEE represent a paradigm shift: China is no longer merely exporting products—it’s exporting cultural codes. By redefining “Made in China,” they are shaping a global market where heritage stands as valuable as innovation.

For foreign players, the message is clear: to succeed in China, you must respect its cultural pride. As 22-year-old Shanghai student Li Wei aptly puts it, “We don’t want ‘Chinese-style’ Louis Vuitton. We want Louis Vuitton to learn from us.”

For Chinese brands, the world is now their stage.

Data Sources

  • McKinsey & Company, Bain & Company, company financial reports, and industry analyses (2023–2024).
  • Alibaba Group 2023 Report, Tencent Insights 2024.