The Guochao Movement

Businesses in the Chinese beauty and cosmetics industry should keep a close eye on the trend of Guochao in 2023. Guochao, meaning "national wave", refers to a new consumer trend, particularly among Gen Z consumers, where goods that seamlessly blend traditional Chinese culture with a contemporary twist are in high demand. This shift in perception is poised to have a significant impact on the beauty industry in China, affecting both domestic and Western corporations operating in the market. 

Many Western multinational brands enjoy widespread popularity in China because of their association with modernity. However, as China's rapid economic growth and urbanization have progressed, a new generation of Chinese consumers have begun to embrace their national identity and view the ability to produce high quality products as a source of pride. Chinese consumers are taking notice of the advancements made by local beauty and cosmetic brands. There is a growing preference for products that showcase domestic elements, such as ingredients sourced locally and cultural influences. Thanks to increased investment in R&D and a deeper exploration of local elements, home-grown brands are now able to hold their own against multinational competitors. 

The Guochao movement has been a boon to domestic Chinese brands like Li Ning and Anta, but it has also prompted Western multinationals to tap into China's growing cultural pride. Brands like KFC, L'Oréal, and Oreo have responded by launching their own Guochao-inspired products, often through partnerships with notable Chinese cultural institutions. 

The development of Guochao is far from over, and we can expect to see an influx of new Chinese brands emerge, push boundaries, and draw inspiration from China's rich cultural heritage. This trend is sure to drive innovation and creativity within the beauty and cosmetics industry, as companies look to tap into the growing demand for products that celebrate traditional Chinese culture in a contemporary way.