From TikTok to Labubu: How Chinese Brands Are Going Global

Market Trends & Soft Power - Chinese soft power is emerging globally as China moves up the value chain [1][2] - Chinese companies are investing in overseas markets, similar to post-war American companies [3] - Chinese brands are winning over global consumers and changing perceptions [4] Company Performance & Expansion - Pop Mart's annual revenue has more than tripled since 2024, with overall sales growing as much as 250% [6] - Luckin became China's biggest coffee brand in 2023, surpassing Starbucks in sales revenue and store numbers, with three times as many stores in China as Starbucks as of October 2024 [9][10] - Meituan plans to invest $1 billion over the next five years to launch in Brazil [13] Challenges & Opportunities - Chinese companies face geopolitical uncertainties, including tariffs and data privacy scrutiny [15] - Factory deflation and intense competition in China are pushing companies to seek higher profit margins overseas [14][15] - Retention is a big issue for Shein and Temu, with Temu having a user retention rate in the 60% range compared to Amazon's 93% in the US [18][19] Consumer Behavior & Technology - TikTok has over 1 billion users worldwide, including over 170 million per month in the US alone, introducing a generation of young Americans to Chinese brands [7] - Approximately 40% of all retail payments in China are made using phones, indicating a mobile-first e-commerce environment [9]