Discover the real face of Chinese consumption through 50 samples of emerging FMCG brands' successful counterattacks.
Written by | Xiaoxi
Cover image source | Unsplash
In the past few years, the word most frequently mentioned in China's consumer market has been "uncertainty". Big brands have reported a slowdown in the Chinese market in their financial reports, while emerging domestic brands have fluctuated amidst price competition and channel dependence. Consumption hasn't disappeared, but budgets and consumer attention have been fragmented more than ever. This leaves brands with only one question: Are consumers becoming more discerning, or are they being drawn towards low - priced products?
In May 2025, the release of the CBI Index and the CBI500 List (jointly launched by the National School of Development at Peking University, the Institute of Digital Finance at Peking University, and the School of Management at Sun Yat - sen University, with technical support from Taobao and Tmall) provided, for the first time, a quantifiable answer to this question. Different from previous statistics that only focused on sales volume, these are based on billions of real transaction data from the Taobao and Tmall platforms. They incorporate purchases, repeat purchases, word - of - mouth, and the performance of new products into the scoring system, making them closer to a "consumer report card".
A unique finding from the CBI Index in the first two quarters is that in terms of brand and quality, consumption still shows an upward trend. The CBI Index has been steadily rising over the past nine quarters. In consumers' real choices, the brand and quality of products still matter.
In the newly released second - quarter list, a more highly - regarded part is the "List of Emerging Fast - Moving Consumer Goods Brands", which is included separately for the first time.
Why fast - moving consumer goods? Because this industry is an excellent window to capture consumption trends. With its high - frequency and high - turnover nature, it is naturally a sensitive area for observing innovation and consumer preferences. The 50 brands on this quarter's list demonstrate a common pattern: After a decade of rapid growth in live - streaming e - commerce, brands that solely rely on advertising are on the decline. Only those brands that can continuously launch new products, attract high - value customers, and build a base of repeat customers are qualified to stay in the spotlight.
From category innovation to function enhancement, from brand concepts to emotional value, these emerging fast - moving consumer goods brands offer diverse answers. The list is not just a ranking; it's more like an industry health check, reminding us that after the ebb of the traffic dividend, China's consumer market is entering a new cycle - where brand awareness and product quality are once again becoming decisive factors.
From traffic to brand awareness: Subtle changes in the numbers
The release of the CBI500 List for the second quarter allowed people to see the subtle changes in consumption through numbers for the first time.
The overall index was 65.21, about 2 points higher than that of the first quarter. Although this is a regular figure, it has deeper meaning due to the time frame. The reporting period covered the 618 Shopping Festival. There was a view in the industry that large - scale promotional events might boost the sales of low - quality and low - priced products. However, the data showed the opposite trend: When consumers are most likely to make impulsive purchases, it turns out to be the most important period for quality consumption throughout the year.
Behind this lies a major cycle shift. The past decade could almost be called the "Decade of Traffic". The explosion of live - streaming e - commerce made many emerging brands synonymous with "new consumption". The model was simple: invest in advertising, generate buzz, and expand channels to achieve soaring sales through high - volume exposure. At that stage, traffic was almost all that mattered for a brand. However, the list shows that this logic is no longer working. The numbers built on advertising spending will collapse once the investment stops.
A consumer investor once said that when investing in a brand, they are not afraid of slow growth but are most worried about a brand's sharp rise and fall, like a roller - coaster. To avoid such a volatile development, product quality, repeat purchases, and consumer reviews are undoubtedly more important.
On September 16th, at the seminar on the "List of Emerging Fast - Moving Consumer Goods Brands", Ji Yang, an associate professor at the School of Management at Sun Yat - sen University and a representative of the CBI research group, made a penetrating statement: "This is not an era of no - name brands. It is an era where brands are still growing and where it is worth adhering to brand value." In other words, the logic of consumption has shifted from "short - term explosion" to "long - term choice". Traffic can attract attention but may not lead to repeat purchases; it can boost GMV but may not build brand awareness. The real challenge is how to get consumers to come back again and again.
This is where the "List of Emerging Fast - Moving Consumer Goods Brands" is more valuable. It focuses on brands that are relatively new but show strong innovation and growth potential. This list refers to the scoring system of the CBI500 List and has been optimized for new brands. Instead of using the traditional GMV ranking, it is designed with five dimensions: Track opportunities, novelty, popularity, reputation, and loyalty, with an emphasis on target customers, repeat purchases, product innovation, and track opportunities.
The results of the list confirm this. Among more than 3,000 fast - moving consumer goods brands that opened stores on Tmall after 2018, the ones that truly stand out are not the largest or the most well - known, but those that can continuously launch new products, attract high - value customers, and perform well in terms of repeat purchases and word - of - mouth. They may still be in the early stages of rapid growth, but their development paths are clearer, and they can better illustrate the future direction of China's consumer market.
Therefore, the "List of Emerging Fast - Moving Consumer Goods Brands" is another interpretation of the long - term industry trend. It is like a quarterly health check, revealing one aspect of the real order in China's consumer market: After the fading of traffic, what determines whether a new brand can gain a foothold is not a one - time hit product but whether it can become a brand that consumers choose repeatedly.
Behind the four ways of breaking through: The ability to be chosen
The list tells us a straightforward fact: After the ebb of traffic, no brand can succeed through a single path. The brands that can truly be noticed are those that have found unique niches and established long - term relationships with users. Their ways of breaking through are different, but together they form the growth code for emerging brands.
Take Coppertone Kids as an example. It entered the children's sunscreen market, a niche segment that few had paid attention to. Sunscreen was once a necessity for adults, but with the increasing refinement of parenting concepts, children's skincare has quickly become an emerging demand. Coppertone Kids seized this opportunity and rose to the top in the country from a very narrow market. Its case reminds the industry that niche doesn't mean small. When user needs are fully amplified, what was once an "edge track" can become a new mainstream.
Another approach is to build a moat through "steadiness". ToPure doesn't rely on hit products but builds long - term relationships through environmental protection and repeat purchases. Its "Empty Bottle Recycling Program" makes consumers part of the brand's ecosystem, resulting in a higher average order value and repeat purchase rate. It proves that sustainability is not just a distant concept but can be translated into specific actions for growth. This patient approach is not common in the fast - moving consumer goods industry but may become a more resilient path in the next round of competition.
HerLab has a different logic. It entered the female health market with its occult blood sanitary napkins and Xinjiang cotton product series. These products are not entirely new inventions, but they made users feel for the first time that someone was seriously addressing these long - neglected needs. The innovation here is not just about product efficacy improvement but also a social response. When products resonate with social issues, consumers' choices are no longer just based on functionality but also on value recognition. This sense of recognition is often more stable than a simple price advantage.
Another idea comes from Eileen West. It introduced fragrance storytelling into personal care products, packaging daily bathing as a "healing ritual". In a highly homogeneous market, it redefined the meaning of products through emotional value, making consumers willing to pay for scents and emotions. In the past, competition in the fast - moving consumer goods industry often focused on product efficacy - who can whiten more, who can moisturize better. However, Eileen West shows that emotions can also be a core competitive advantage.
Whether through extreme segmentation, long - term sustainability, value resonance, or emotional connection. Four brands, four paths, seemingly distinct, but together they form the common foundation for the success of emerging fast - moving consumer goods brands at present: The ability to be chosen repeatedly is the real moat in the next stage.
Ji Yun, the general manager of Tmall's fast - moving consumer goods industry, has a view: "Nowadays, consumers are less concerned about a brand's history and whether it is an international brand. That's why many emerging brands are ranked ahead of well - known brands, which is actually the result of consumers' choices."
Therefore, as the industry diversifies, brands need to find their own unique logic. No matter how different the paths are, their common ground is to establish a deeper and more lasting relationship with consumers.
Beyond individual brands: The collective image of domestic brands
Taking a broader view, the success of emerging brands is not an isolated phenomenon but a collective trend. The list shows that 48 of the emerging fast - moving consumer goods brands on this list are from the Chinese mainland.
This overwhelming proportion not only means an advantage in quantity for domestic brands but also represents a comprehensive rise in R & D, channels, and brand storytelling.
This rise is first reflected in geographical distribution. Cities like Shanghai, Hangzhou, and Guangzhou have become hubs for emerging brands due to their e - commerce infrastructure and industrial chain advantages. These cities are not only at the forefront of e - commerce but also hotbeds for R & D and cultural storytelling. In such an environment, brands can more easily rely on laboratories, communities, and supply chains to form small and agile new entities.
Dr.Alva is a typical example. It entered the market through micro - ecological research and was the first to gain a foothold in the probiotic skincare market. Facing international brands that still emphasize classic product efficacy, it tells a new story with a laboratory - based approach, directly transforming scientific research barriers into brand barriers. This approach not only meets consumers' expectations as "ingredient - conscious" shoppers but also allows domestic brands to compete head - on with foreign brands in terms of scientific research influence.
Semir offers another possibility. Instead of chasing so - called big hits, it breaks down the highly homogeneous toothpaste category into different scenarios: whitening, lysozyme, and Chinese herbal medicine for gum protection... The functions are segmented to precisely meet users' specific needs. Beyond the reversal of market share, it is the functional scenario - based approach achieved through technological innovation that has rewritten a seemingly fixed product category.
Flower Knows combines "girlish elements" with "Chinese traditional culture" and quickly broke through in the highly competitive cosmetics market with its design sense and visual storytelling. There is a certain harmony between youth and tradition. From packaging aesthetics to product themes, Flower Knows combines traditional culture with young people's aesthetic preferences, creating a strong sense of differentiation. This not only won it fans in China but also attracted attention overseas. Its success shows that the support of capital and the market is not just an amplifier of traffic but can also be a disseminator of cultural values. Flower Knows has achieved a transformation from "following" to "leading" through cultural storytelling, giving domestic brands a new way to be understood in the cosmetics market.
Putting these cases together, we can outline the collective image of emerging domestic brands: They are no longer just low - priced alternatives but are winning over discerning consumers through the dual barriers of "technology + culture". Behind this is a change in consumers' mindset - they are no longer satisfied with just "cheap and good - quality" products but hope that brands can provide additional value, whether it's scientific evidence, cultural identity, or personalized experiences.
More notably, this trend is driving the entire consumer industry into a new stage of evolution. First, R & D investment and a laboratory - based approach are gradually becoming standard for domestic brands. In the past, talking about technology was more the narrative of multinational giants. Now, domestic brands are also speaking with data, patents, and experimental results. Second, the consumer industry is becoming more segmented. From children's sunscreen to oral care, from micro - ecological skincare to fragrance - based personal care, niche markets are no longer just small segments but starting points for new growth. Finally, the role of capital is also changing. It is no longer just chasing short - term explosions but is gradually shifting to support brands with long - term potential, those that can leave an impression on consumers' minds.
Therefore, the CBI List of Emerging Fast - Moving Consumer Goods Brands not only shows the rise of a group of brands but also helps the industry see a collective trend: Domestic brands have moved from being "followers" to "definers". In the future, competition may no longer be just about price and scale but about who can build deeper connections in the three dimensions of science, culture, and experience.
The list is a coordinate, not an answer
The release of the CBI500 List and the List of Emerging Fast - Moving Consumer Goods Brands does not provide a definitive answer. Instead, they are more like stage - specific coordinates for the industry.
A list cannot determine which brand will ultimately succeed, but it can provide an objective reference system for brands, investors, and consumers, allowing them to see more clearly where consumption is headed.
