(Source: https://pltfrm.com.cn)
Introduction
China’s GDP grew 5.2 % in the first three quarters of 2025, driving the retail market past ¥50 trillion for the first time. For overseas brands, this is not just a statistic — it is the force behind rising disposable income, premiumization, and explosive county-level consumption that is rewriting entry strategies.
1. Middle-Class Expansion Fuels Premium and Experience Spending 1.1 400 Million Middle-Income Consumers by End-2025
- Households earning ¥100k–¥500k annually increased by 18 million in 2024–2025 alone.
- These consumers now allocate 35 %+ of spending to health, beauty, and experiential categories.
1.2 “Consumption Upgrade” Trend Accelerates**
- Luxury goods sales rose 12 % YoY while mass-market stagnated, showing clear polarization.
2. Lower-Tier Cities Become the New Growth Engine
2.1 Tier-3 to Tier-6 Cities Contributed 60 % of Retail Growth
- Pinduoduo and Douyin reported 80 %+ GMV growth from county-level regions.
2.2 Infrastructure Leap Enables Same-Day Delivery Nationwide - High-speed rail and expressway expansion made logistics costs drop 22 % since 2022.
3. Confidence Recovery Drives Revenge Spending in Big-Ticket Categories 3.1 Home Appliances, Furniture, and Automotive Rebounded Strongly
- Stimulus policies and trade-in subsidies triggered 30–40 % YoY spikes. 3.2 Overseas Brands in These Categories Saw Record Market Share Gains
4. Digital Economy Contribution Reaches 43 % of GDP 4.1 Online Retail Penetration Hit 32 %
- Every 1 % GDP growth now adds ¥1.2 trillion in e-commerce transaction value.
Case Study: German Kitchen Appliance Leader
A premium German kitchenware brand partnered with PLTFRM in early 2024. We capitalized on the 2025 trade-in stimulus wave with a Tmall + Douyin + lower-tier city live-streaming strategy. Result: China became their global No.1 market with ¥1.1 billion GMV and 440 % YoY growth.
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!
