Investment in Old Brands & Increased China Chic Consumption Trend
Source: Hills Fund Published time: 2023-07-10
Over the past few years, China has witnessed a surge in young consumers' interest in domestic brands and products that incorporate Chinese traditional style and culture, a trend known as China Chic. Old brands benefit greatly from the current China Chic consumption trend, which indicates that consumers are actively seeking out and appreciating brands with roots in their own culture. This trend is highly favored by the younger generation in China. An increasing number of well-known brands are finding new opportunities through creative packaging and marketing strategies.
Firstly, old brands could easily exceed newer ones thanks to their deep histories and brand recognition. After years of hard work and steady improvement, they have earned not only their customers' respect and trust, but also widespread recognition of their brand and consistent devotion. These companies can adapt to the needs of the market by repackaging and improving their product lines to appeal to a wider audience.
In the second place, the cultural cachet attached to the old brands are a major draw for modern consumers. Due to its depth and breadth, Chinese traditional culture is home to a plethora of superior aesthetic principles and artistic approaches. Old brands can create unique products that stand out from the competition by incorporating such elements and styles. If they want to attract new customers, old brands, for instance, can introduce a line of products with a cultural focus.
Moreover, old brands can strengthen their reputation by increasing customer satisfaction with high-quality products and expert service. Consumers in China are becoming increasingly discerning as the country's economy develops. Established names in the market can establish their credibility by continuing to produce high-quality goods in the traditional manner. A positive reputation can increase the worth of products and bring in new customers.
To sum up, the China chic consumption trend presents enormous opportunities for old brands. Old brands can break new ground by innovating, repackaging, and capitalizing on their established reputation for quality and prestige. The next challenge requires careful thought and research to locate investment worthy products. We recommend further investigation into the following areas:
1. Understanding the historical and cultural heritage of brands
The greatest asset of old brands is their abundent cultural history. Consequently, knowing their background allows us to evaluate their market competitiveness. But here are some perspectives to keep in mind when go through the process:
（1）Origin and history of the brand.
（2）Core culture and heritage characteristics of the brand.
（3）Market environment and competition pattern of the brand.
2. Observing performance and development potential of the brands in the market
Understanding a brand's market competitiveness and commercial value can be achieved through observation of the brand's performance and growth potential in the market. However, the following factors must be taken into account during the process:
（1）Market share and revenue of the brand.
（2）Brand lines and market positioning of the brand.
（3）Market reaction and reputation of the brand.
3. Consider the future development and strategy of the brands
Whether or not a brand has long-term value and sustainability can be determined by looking at its planned development and strategy. But here are some things to keep in mind as you go through the process:
（1）Capability for product innovation and technical innovation.
（2）Brand image and marketing strategies of the brand.
（3）Expansion and international strategy of the brand.