The Guochao (国潮) movement, which translates to "national trend," has become a cultural phenomenon in China, reflecting a resurgence of national pride and an embrace of traditional Chinese aesthetics. Originally driven by a desire for local products over foreign imports, it has now entered a new phase—Guochao 2.0—which is reshaping consumer behavior, especially among Gen Z. In 2026, this trend is expected to evolve further, as young consumers increasingly integrate Chinese cultural IP into various sectors such as commerce, tourism, and digital content. For foreign brands looking to thrive in this dynamic landscape, understanding and authentically participating in Guochao 2.0 is crucial.
The original Guochao trend was characterized by a strong nationalist sentiment, where consumers favored local brands simply because they were Chinese. However, Guochao 2.0 introduces a more sophisticated layer of cultural integration.
Beauty: The beauty sector is witnessing a surge in brands that incorporate traditional Chinese herbal ingredients, combined with modern formulations. Brands like Herborist successfully merge heritage with innovation, showing that authenticity resonates with consumers.
Fashion: Fashion brands are increasingly drawing inspiration from Chinese history, textiles, and folklore. International brands like Nike have launched limited-edition collections that feature traditional designs and symbols, appealing directly to the national pride of consumers.
Food and Beverage: The food sector is embracing local flavors and traditional preparation methods. Foreign brands can gain traction by creating products that incorporate local tastes or by collaborating with Chinese chefs. For instance, Starbucks has introduced seasonal beverages that celebrate Chinese festivals, enhancing local relevance.
Gaming: The gaming industry has rapidly adopted elements of Chinese culture, with games like Honor of Kings incorporating historical figures and folklore. International game developers can engage players by creating culturally inspired content that resonates with local narratives.
To avoid being displaced in the evolving Guochao landscape, foreign brands must prioritize cultural collaboration over mere cultural appropriation. This involves:
Storytelling is key to connecting with Gen Z consumers who value brands with a narrative. Here’s how to effectively tell your brand’s story in relation to Guochao:
Building a community around your brand can create loyalty and deeper connections. Consider the following strategies:
Several international brands have successfully embraced Chinese cultural elements, providing valuable lessons for newcomers.
KFC: The brand has adapted its menu to include local flavors and seasonal offerings. By celebrating Chinese festivals with themed promotions and limited-time products, KFC has established itself as a culturally relevant player in the fast-food market.
Adidas: The sportswear giant launched a campaign featuring traditional Chinese craftsmanship, collaborating with local artists to create limited-edition sneakers. This approach not only highlighted cultural heritage but also appealed to the trend of personalized fashion among Gen Z.
L’Oréal: The beauty brand has successfully integrated Chinese cultural elements into its marketing by showcasing local influencers and emphasizing traditional beauty practices. Its campaigns resonate with consumers who value both modern beauty standards and cultural roots.
As Guochao 2.0 unfolds, foreign brands must adapt their strategies to engage with the evolving values of Chinese consumers. Here are actionable steps to consider:
Conduct Market Research: Understand the cultural, social, and economic factors influencing consumer preferences in China.
Build Local Partnerships: Collaborate with local influencers, artists, and brands to enhance authenticity and cultural relevance.
Develop Culturally Inspired Offerings: Create products that incorporate Chinese cultural elements while maintaining high-quality standards.
Engage Through Storytelling: Leverage digital platforms to share your brand's narrative in an engaging manner that resonates with local consumers.
By aligning with the values of Guochao 2.0, foreign brands can not only thrive in the Chinese market but also become part of a broader cultural narrative that celebrates the richness of local heritage.