Why foreign brands have lost their “foreign halo” in China — and what to do next

The shift from admiration to relevance — and how global brands can rebuild authentic connections with Chinese consumers.

The golden age of the “foreign halo”

For nearly two decades, being a foreign brand in China almost guaranteed success.

From luxury goods to skincare, Made in France or Imported from Italy once stood for quality, aspiration, and status. Many Western brands used to say, “If we capture just 1% of China’s market, we’ll succeed.”

But the real question today is: how do you even reach that one percent — and make them choose you in a landscape where domestic consumers already have endless high-quality, lower-priced alternatives?

To many consumers, foreign brands once symbolized trust and a better lifestyle.

But that era has quietly faded.

The turning point: confidence and creativity from within

Around 2018, the conversation began to change.

A new generation of Chinese consumers started asking a different question:

“Why should I pay more just because it’s foreign?”

In Chinese slang, there’s even a phrase — “ge jiu cai” (割韭菜) — used to mock brands that overcharge naïve consumers nowadays.

It literally means “harvesting leeks,” a metaphor for taking advantage of people who keep paying without realizing they’re being exploited.

That cultural shift says everything about today’s market maturity: Chinese consumers have become confident, informed, and unwilling to pay for prestige alone.

Local Chinese brands began to rise — agile, design-driven, and deeply attuned to cultural nuances.

They understood social media language, humor, and values.

They no longer followed global trends; they created their own.

Today, foreign no longer equals superior.

It’s about who understands the audience — not where the brand comes from.

Why foreign brands are losing relevance

Four forces have shaped this shift:

1. Cultural distance — Many global campaigns still feel translated rather than locally inspired. They replicate global messaging with only surface-level adaptation — changing language but not context. As a result, they miss the humor, symbolism, and subtle emotional cues that truly resonate with Chinese consumers.

2. Digital speed — Western planning cycles can’t keep pace with China’s fast-moving digital landscape. In a market where trends can rise and fade within weeks, slow global approval systems often mean that by the time a campaign goes live, the conversation has already moved on.

3. Emotional disconnection — Too many stories focus on heritage and product superiority instead of empathy and shared identity. Therefore, global campaigns that fail to reflect local aspirations — individuality, belonging, or humor — quickly fall flat.

4. Platform gap — Many global teams underestimate how China’s digital ecosystem shapes brand discovery and reputation. Platforms like Xiaohongshu(Rednote), Douyin (tiktok Chinal), and WeChat Channels are not just medias but are local communities from different platforms. Each platform operates with its own tone, rhythm, and unwritten rules. Failing to adapt to these dynamics often means invisibility — no matter how strong the brand heritage is elsewhere.

From “foreign” to “familiar”: rebuilding connection

To stay relevant, global brands need to move from being admired to being understood.

1. Redefine positioning

Act less like a visitor and more like a participant.

Join cultural conversations rather than commenting from the sidelines.

2. Rethink storytelling

Shift from heritage-based narratives to value-based ones.

What beliefs do you share with your audience? What emotions do you spark?

3. Localize creatively, not literally

Adapt visuals and content to reflect local aesthetics and humor.

Collaborate authentically on native platforms such as Wechat Channels, Xiaohongshu and Douyin etc,

4. Co-create with local voices

Partnerships with Chinese creators build trust faster than top-down campaigns.

The next golden era: belonging over origin

The next wave of success in China won’t come from being the most “foreign.”

Modern Chinese consumers no longer care “Where are you from?”

The brands that thrive will be those that listen deeply, adapt gracefully, and tell stories that transcend borders.

At DONGXI STRATEGY, we help SMEs navigate cultural complexity and make strategic moves across Sino-European markets. Our mission is to empower brands to transform creative insight into sustainable global growth.