Nationalism Fades: Global Brands Win Back China

A subtle but significant shift is underway in China's consumer market, with some mid-market Western brands regaining favor after a period of intense nationalism. Brands like Gap, Zara, and Mango experienced sales growth exceeding 30% on e-commerce platforms such as Tmall in 2025, reversing previous declines.

This resurgence is attributed to a cooling of patriotic fervor and a growing consumer pragmatism. As economic growth has softened, shoppers are increasingly prioritizing product design, quality, and value for money over nationalistic sentiments. This trend is evident as brands like Gap have returned to profitability and are even trimming discounts.

Retailers are adapting by localizing products, optimizing supply chains for China's digital-first environment, and enhancing their online presence through livestreaming. Gap, for instance, now handles about 70% of its design and production locally. This strategic recalibration is helping foreign brands reconnect with Chinese consumers.

While risks like geopolitical tensions and the rise of cheaper "dupes" persist, the trend indicates a move toward more discerning consumption. Consumers express a willingness to buy foreign brands if they offer competitive design and pricing without political controversy, signaling a rebuilding of consumer-brand connections.