(Source: https://pltfrm.com.cn)
Introduction
China’s advertising ecosystem is evolving faster than ever, driven by AI, shifting consumer behavior, and platform algorithm upgrades. In 2025-2026, brands that master private domain traffic, interest-based e-commerce integration, and hyper-personalized content are seeing 3-5× higher ROI. This article breaks down the five most impactful trends right now and shows exactly how overseas brands can implement them for maximum results.
1. Private Domain Traffic + Livestreaming Becomes the New Growth Engine
1.1 WeChat Channels & Enterprise WeChat Dominance Traffic Loop Closure: Brands are moving away from pure public-domain spending to building owned audiences inside WeChat Channels and Enterprise WeChat groups. Average customer lifetime value inside private domains is 4-8× higher than on open platforms.
SOP-Driven Livestreaming: Top brands now run daily 2-4 hour private-domain livestreams with fixed hosts, scripted product drops, and flash group-buy deals. Conversion rates regularly hit 8-15% versus 1-3% on Douyin/Tmall public streams.
1.2 Mini-Program Membership Systems Seamless Purchase Paths: Leading overseas brands link Xiaohongshu/Douyin content directly into branded WeChat mini-programs with one-click repurchase and points systems. This reduces customer acquisition cost by up to 60% after the third purchase.
2. Interest E-Commerce (Douyin & Xiaohongshu) Overtakes Search E-Commerce
2.1 Algorithm Shift to “Interest + Purchase Intent” Content-Led Sales: Douyin’s 2025 algorithm now prioritizes videos that trigger both emotional engagement and immediate purchase intent signals (pauses, rewinds, comments containing “where to buy”). Brands creating 70% entertainment + 30% soft-sell content are winning feed placement.
Xiaohongshu Notes as the New Landing Page: High-quality graphic + video notes on Xiaohongshu are replacing traditional Tmall/JD detail pages as the primary conversion driver for beauty, fashion, and health categories.
2.2 Kemi (Short Video + Livestream) Combination Punches Exploit + Convert Model: Brands post 3-5 short videos daily to “plant grass” (spark interest), then immediately follow with paid livestream rooms when engagement peaks. This combination routinely delivers ROAS above 1:6 for overseas brands.
3. AI-Powered Creative & Media Buying Revolution
3.1 AIGC at Scale Tongyi Wanxiang & Doubao Co-Creation: Chinese AI tools now generate complete 15-second Douyin videos (script + visuals + voice + music) in under 5 minutes at 1/50th the cost of traditional production. Top agencies report 80% of ad creatives in 2025 are AI-assisted or fully AI-generated.
Real-Time Creative Optimization: Platforms like Tencent Yuntu and ByteDance OmniEngine auto-test hundreds of AI variations and push only the top 3% performers.
3.2 Hyper-Personalized Feed Ads Dynamic Creative Optimization+: Ads now change headline, background, CTA, and even product based on viewer’s past behavior in real time. Overseas cosmetic brands using DCO see 40-60% higher click-through rates on Douyin.
4. Rise of “New Tier-1” and Lower-Tier City Budget Allocation
4.1 Sinking Market Focus Budget Reallocation: In 2025, 40-60% of many overseas brand budgets are shifting from Shanghai/Beijing/Shenzhen to cities like Chengdu, Hangzhou, Chongqing, and Wuhan where CPI is lower and loyalty is higher.
Localized Dialect Content: Brands winning lower-tier cities use regional KOLs speaking local dialects and referencing city-specific culture, resulting in 2-3× higher engagement.
4.2 County-Level Livestreaming Pinduoduo & Douyin County Partners: Collaborating with county-level super hosts who command 100k+ concurrent viewers delivers explosive volume at fraction of the cost of tier-1 KOLs.
5. Brand Co-Creation & Super IP Collaborations
5.1 Cross-Border IP Fever Global IP + Local Adaptation: Licensed collaborations (e.g., Disney, Harry Potter, Sanrio) with Chinese cultural twists dominate gifting seasons. Overseas brands that create China-exclusive storylines around global IPs see sell-outs within hours.
5.2 User-Generated Content Amplification UGC Seeding Programs: Brands pay micro-influencers (1k-10k followers) fixed fees to create authentic content, then amplify the best posts via information flow ads. This delivers trust + scale simultaneously.
Case Study: L’Oréal Paris – 318% GMV Growth on Douyin in 2024-2025
L’Oréal shifted 65% of its China media budget to Douyin interest e-commerce, built a 2-million-member WeChat private domain, and launched daily private livestreams with fixed hosts. Using AI-generated creatives refreshed every 48 hours and heavy investment in “new tier-1” cities, the brand achieved 318% YoY GMV growth and reduced overall CAC by 42% while maintaining premium positioning.
Conclusion
The 2025-2026 China advertising landscape rewards brands that combine private-domain ownership, interest-driven content, AI efficiency, lower-tier penetration, and cultural co-creation. Overseas brands that restructure teams and budgets around these pillars are pulling decisively ahead of competitors still using 2022 playbooks.
PLTFRM is an international brand consulting agency that works with companies such as Red, TikTok, Tmall, Baidu, and other well-known Chinese internet e-commerce platforms. We have been working with Chile Cherries for many years, reaching Chinese consumers in depth through different platforms and realizing that Chile Cherries’ exports in China account for 97% of the total exports in Asia. Contact us, and we will help you find the best China e-commerce platform for you. Search PLTFRM for a free consultation!
