A striking poster of her flexing toned muscles in a pink Lululemon tank top, paired with the Chinese phrase “活出生动” (a nod to Lululemon’s global campaign, Live Like You Are Alive), has been widely shared on Xiaohongshu (Rednote).

Unlike past Women’s Day campaigns drenched in pink ribbons and glossy discounts, Macdonald’s image delivers a message of empowerment without resorting to commercial gimmicks.

Chinese consumers are taking note—and pushing back.

Beyond Pink Discounts: A Shift in Women’s Day Narratives

Something is changing in the way Chinese female consumers engage with Women’s Day in recent days. If spending power is a form of power, then Chinese women are wielding it with new intentionality.

Retailers, once dictating the language of the occasion, are now being held accountable by the very audience they target.

In Chengdu, a city known for its relaxed vibe and iconic pandas, shopping malls featured LED signs displaying quotes from renowned feminist writers, films, and local idioms celebrating women’s strength.

These messages—free of flowery adjectives and infantilizing nicknames—are gaining traction on social media. Clean, direct, and unapologetic, they stand in stark contrast to the saccharine marketing language that has long defined March 8th promotions in China.

For years, brands and e-commerce giants rebranded the holiday into "Queen's Day" or "Goddess Day," operating under the belief that these labels exuded respect while, in reality, they served as little more than ploys to lure female customers into spending. But Chinese netizens are reclaiming the real name.

On Xiaohongshu, users are documenting and celebrating businesses across the country that have opted for a more powerful and yet de-commercialized approach.

It signifies a broader shift in consumer consciousness—a realization that the language used around Women’s Day reflects deeper societal attitudes toward women. The refusal to be infantilized, sexualized, or turned into a convenient marketing demographic speaks to a growing awareness of power dynamics in branding, advertising, and commerce.

The Rise of Women-For-Women Businesses

This shift in values has also catalyzed a new commercial model: the all-women business (or "women-for-women" business), referring to businesses both founded by women and catering exclusively to female consumers.

The emergence of this model isn’t coincidental—it is a direct response to long-standing gender imbalances in both professional and consumer spaces.

"Women-for-women" businesses can be categorized into two distinct types in China at the moment. The first includes tailored services designed exclusively for female clients, such as skincare clinics and women-only bars, which prioritize customer experience and comfort. The second type ventures beyond commercial viability into ideological experimentation—feminist bookstores, women-led home renovation businesses, and female-only electrician services.

These businesses are not just about filling a market gap; they represent a broader societal reconfiguration in how women engage with labor, power, and consumption.

Sure, questions remain about this emerging business model—some have fallen short or faced criticism. Yet, it undeniably signals a broader shift in consumer values among Chinese women, particularly in major metropolitan areas like Shanghai and Beijing.

Economically, this trend aligns with the "she-conomy" (she + economy), a term widely used in Chinese marketing discourse to describe the rise of female-driven consumer spending.

The numbers back it up: women control as many as 75% of household purchasing decisions in China, and their spending patterns are increasingly aligned with values rather than impulse-driven consumption.

This is why companies that embrace inclusivity, respect, and authenticity in their messaging are gaining traction.

Government Messaging: A Rare Nod to Feminism?

Across state-owned shopping malls from Chengdu to Shanghai, Zhengzhou, and Changsha, bold yet understated slogans that align with feminist discourse are appearing—an unusual sight in a country where feminist activism often meets governmental scrutiny.

This March has also seen an influx of imported feminist films in Chinese cinemas for the first time, despite having been released abroad years ago.

Among them are There’s Still Tomorrow, an Italian film directed by Paola Cortellesi, Prima Facie starring Jodie Comer, the French animated film Fireheart, and several others—marking a rare cultural shift in how gender issues are discussed in the public sphere.

Historically, the Chinese government has been cautious about embracing Western-style feminist narratives. Yet, recent developments suggest a degree of strategic openness, likely tied to an upcoming global summit on gender equality and women’s empowerment, which China is set to host in the second half of this year.

Chinese Foreign Minister Wang Yi announced earlier this month that Beijing will hold the Global Leaders’ Meeting on Gender Equality and Women’s Empowerment, signaling the event’s diplomatic importance.

While this does not signal an ideological overhaul, it does indicate that certain feminist themes are being cautiously permitted within controlled environments—especially when they align with broader diplomatic or economic interests.

The question remains: is this newfound space for feminist dialogue a temporary allowance for political optics, or does it mark a more enduring shift? Regardless, Chinese women’s increasing awareness and rejection of outdated marketing narratives suggest that, whether governments or corporations adapt or not, consumer behavior has already moved forward—and it isn’t looking back.

The closures affect the Reel Mall store near Jing’an Temple and the New World Daimaru store near Nanjing East Road, both situated in prime shopping districts. The news first broke by a retail analyst Hanson on RedNote.

Gucci, owned by Kering, will maintain seven stores in Shanghai following the closures. The moves come as the brand struggles with declining sales in a key market. Kering reported that Gucci’s annual net revenue fell 23% to €7.7 billion ($8.3 billion) in 2024. Compared to its peak, when Gucci reached a sales momentum of 10.49 billion euros in 2022, the luxury giant has seen its revenue decline by nearly 2 billion euros.

The Asia-Pacific market, excluding Japan, is a critical region for Gucci, accounting for over 35% of its total revenue, with China playing a central role. However, shifting consumer behavior—where Chinese shoppers increasingly prefer to purchase luxury goods abroad—and a broader economic slowdown have weighed on sales.

Kering's challenges are not isolated to Gucci; the luxury conglomerate has faced broader difficulties, with profits plunging by 50% due to struggles across other brands, including Saint Laurent, Balenciaga, and Alexander McQueen. Other global luxury brands have also reported softer demand in the region, as high-net-worth consumers adopt a more cautious spending approach amid economic uncertainty.

The retail market in Hong Kong is witnessing an influx of Chinese coffee chains like Luckin Coffee and Cotti, reflecting a growing trend towards affordable options. Meanwhile, Proya continues to dominate the beauty sector with significant revenue growth, driven by substantial marketing investments. Conversely, the luxury market faces challenges, as major brands like LVMH and Hermès report declining sales due to reduced consumer demand in China. Additionally, a shift in consumer trends sees young Chinese moving to smaller towns for better lifestyles amid economic pressures. Finally, the upcoming National People's Congress Standing Committee meeting holds potential for new government stimulus measures aimed at revitalizing the economy.

Retail Market

• Chinese Coffee Chians are flocking into Hong Kong

Chinese budget coffee chain Luckin Coffee is set to open its first store in Hong Kong’s Tsim Sha Tsui district, with renovations currently underway. In addition to Luckin Coffee, another affordable coffee brand, Cotti, entered the Hong Kong market in November of last year, opening its first store on Queen’s Road Central. Since then, it has rapidly expanded to districts like Causeway Bay, Mong Kok, and Ngau Tau Kok.

• Proya Continues to Lead the Beauty Sector

C-beauty flagship brand Proya released its third-quarter report for this year, showing a 21.15% year-on-year increase. For the first three quarters, Proya saw a 33% rise year-on-year, with revenue reaching 6.966 billion RMB and net profit hitting 999 million RMB. Proya places a strong emphasis on marketing, investing as much as 3.5 billion RMB in branding and promotional expenses for 2023.

Luxury Market

• LVMH, Kering, and Hermes post weak sales amid Chinese luxury spending slowdown

Luxury companies have posted disappointing third-quarter earnings for 2024, particularly impacted by weak consumer demand in China. Even brands like Hermès have experienced a continuous decline in foot traffic in the Chinese market. LVMH reported a 16% year-on-year drop in the Asia-Pacific region for the third quarter, and a 12% decrease for the first nine months. Kering also saw a 30% year-on-year drop in the third quarter in the Asia-Pacific region.

Consumer Trends

• Young Chinese Are Leaving Big Cities to Pursue Dreams in Smaller Towns

High inflation, increasingly competitive job markets, and the high cost of living are driving more young Chinese to small towns in search of their dream lifestyles. Factors like industrial upgrades, policy support, and a youth-led “internet celebrity economy” are contributing to the resurgence of smaller towns. In these places, young people are finding a new way of life—one that offers not only fresh travel experiences but also a “new lifestyle model” more connected to the rhythm of everyday life.

Government Policy

• China Sets Date for Key Meeting about Market’s Stimulus Hope

China will hold the 12th meeting of the 14th National People's Congress Standing Committee. This meeting is very important, as the market sees it as a key window for announcing more stimulus measures to boost the economy. The meeting will take place from November 4 to 8 in Beijing.

Hey readers, the weekly wrap-up is back. I will try to deliver what just happened on China’s retail sector and also an anlysis piece each week. For this week, the in-depth analysis will reveal what went wrong of Hong Kong’s luxury malls in China, and why China’s local players are winning (stay tune).

Luxury Stock Rally Amid China’s Stimulus Policy

After a tough year, the luxury sector finally got a much-needed boost, spurred by China's latest round of stimulus, which fueled a rally in luxury stocks. The Europe Luxury Index (STXLUXP) surged 2.5% after the news on Tuesday, marking its largest recent gain. The pan-European STOXX 600 index rose by 0.7%, with the luxury-heavy French market outperforming, gaining 1.3%.

LVMH stock rose 3.2% by the close of the day, while Richemont soared 4.1%. However, Goldman Sachs cautioned that this China-driven rally in luxury stocks is built on shaky foundations and is unlikely to significantly boost high-end discretionary spending.

Junjie’s Take: The luxury sector has struggled this year, primarily due to its reliance on China’s market. Yet, top-tier brands like Hermès and Chanel have remained largely unaffected, as wealthy Chinese consumers continue to invest in brands with strong equity and value appreciation potential.

In contrast, brands that rely more on China’s middle class or newly affluent consumers—such as Gucci—have faced headwinds. While China’s stimulus measures may support luxury stock prices, they are unlikely to significantly boost overall luxury sales, as the middle class continues to battle declining incomes and inflationary pressures.

H&M Launches on Pinduoduo (China’s Version of Temu)

Swedish fast-fashion giant H&M is expanding its digital presence, launching a store on Pinduoduo and establishing an account on Douyin (China’s version of TikTok). H&M, which faced a backlash in China in 2021 over the Xinjiang cotton controversy, has recently been struggling.

Chinese consumers have shifted towards domestic and niche international brands, contributing to H&M's significant revenue drop. The company even closed its flagship store on Nanjing West Road in Shanghai.

Junjie’s Take: H&M’s move to expand into Pinduoduo and Douyin shows the brand’s eagerness to explore new opportunities in China. Notably, Pinduoduo, a Shanghai-based e-commerce platform, targets a broader, lower-income demographic.

It seems H&M wants to offer a wider price range to attract different customer segments on various platforms. For instance, on Taobao, H&M sells items priced as high as 1,000 RMB, but on Pinduoduo, the prices are significantly lower.

Taobao Promotes Free Delivery in Hong Kong and Southeast Asia

Alibaba’s Taobao is set to invest 1 billion yuan to offer free delivery to users in Hong Kong. The project will be managed by Taobao Tmall for vendor recruitment, while Alibaba International will handle user operations and logistics in Hong Kong.

Starting October 1st, Hong Kong consumers will enjoy free shipping on Taobao orders over 99 RMB. According to Cainiao, Taobao’s shipping company currently operates 800 pick-up points in Hong Kong, with plans to increase the number to 1,000 by year-end. Additionally, the free delivery service has been expanded to Malaysia, Singapore, and Taiwan, but the required minimum order value will be higher.

Junjie’s Take: With the growth of mainland China’s internet user base slowing and new user acquisition becoming challenging, many mainland companies are eyeing global markets. For example, companies like Meituan and SF Express are increasing their investments in Hong Kong and exploring emerging markets in Southeast Asia.

Meituan’s Hong Kong food delivery platform, Keeta, has already become the city’s most popular delivery app. Hong Kong, being the closest and most convenient overseas market to mainland China, serves as a testing ground for Chinese internet companies and consumer brands looking to expand internationally.

Miniso Invests in China’s Chain Supermarket

Chinese lifestyle retailer Miniso has purchased a 29.4% stake in Yonghui Superstores, making it the largest stakeholder in the company. Miniso, known for its affordable yet trendy products, has gained popularity, especially among young consumers. Yonghui, a leading supermarket chain in China, has a strong foothold in the fresh produce sector.

Junjie’s Take: Yonghui operates around 850 supermarkets and is the second-largest in China by sales volume. For Miniso, this acquisition presents an opportunity to leverage Yonghui’s existing channels to boost its revenue, which has been affected by the pandemic and competition from e-commerce.

Meanwhile, Chinese consumers are returning to large-format supermarkets, particularly membership-based warehouse stores like Costco and Sam’s Club, as well as local favorites like Fat Donglai Supermarket in Henan, known for its exceptional service. This signals a renewed opportunity for brick-and-mortar supermarkets in China.

Last year, Alibaba didn’t disclose the full sales results for its Singles Day shopping extravaganza, which was a sign that the hype cooled down. At the same time, the competition among major e-retailers is picking up with Xiaohongshu, Bilibili, and Douyin joining the game.

However, Singles Day remains not only China but also one of the world’s biggest online shopping festivals, this nearly two-week-long event is still worth following. Here are some key points to notice:

1. International brands are losing their lure and the Guochao trend is winning over.

According to Tmall, the number of Chinese brands that recorded over 100 million sales is 243, the overall number is about 402, and over half are Chinese brands. Meanwhile, C-beauty brand Proya beat L’Oreal and Lancome in terms of turnover this time. Among 6 C-beauty brands have entered the top 20 this year.

2. There are more growth opportunities below three-tier cities, but they require deep localization to tackle it for international brands.

According to Tmall, more than 20 million new purchasing users and more than 140 million new orders in cities below the third tier.

Hong Kong Stock Market Welcomes a Chinese Retail Brand IPO Trend

Good news for the Hong Kong stock market, one of China’s biggest Puer tea brands Lancang Ancient Tea eyeing an IPO following a trend of consumer goods companies going public in Hong Kong.

At least 10 companies including Keep, Pagoda, and Shiyue Daotian have already made their debut in the Hong Kong stock market.

There’s also a long waiting list with a number over 16, including KK Group, Cha Panda, Lala Move, Cainiao, and SF Express.

Hangzhou SKP Suspended

The expansion of SKP, China's most successful luxury mall, has not been a smooth road. Apart from its home base in Beijing, it has hit a cold streak in other cities. The brand's construction project in Hangzhou has now been halted for unknown reasons.

Beijing Hualian (SKP's parent company) had splashed out $4.8 billion for the site currently in the heart of Hangzhou's Qianjiang Century City. Currently, SKP is only present in Beijing, Xi'an, and Chengdu, but is expanding to Hangzhou, Wuhan, Kunming, Hohhot, and Hefei.

Canadian outwear brand Arc’teryx set to establish another flagship in central Shanghai. The brand, owned by China’s garment giant Anta, has signed a lease with Hong Kong’s Wheelock Properties. A move further proves the brand’s growing popularity in the Chinese market.

The three-store located in Shanghai’s Jing’an Temple were rented by Italian top concept shop 10 Corso Como before 2018. Arc’teryx will reportedly build a “museum-concept” flagship in the region, according to China’s lifestyle service platform Xiaohongshu (Little Red Book).

The brand has already started to hire managerial-level staff for the upcoming store on 51job, China’s leading hiring site.

In 2019, Arc’teryx’s parent company Amer Sports was acquired by Anta for 4.6 billion euros. Since then, Arc’teryx has pivoted to a “China First” strategy, and successfully upgraded its brand image to a fashion outdoor that attracts the country’s emerging HNW and middle-class groups.

Chanel showcased a repeated show in Shenzhen with numerous starlight driving heavy social buzz.

Chanel just presented the brand’s first show since the pandemic in China on Thursday. The replicated show for its Cruise 2024 collection took place in Shenzhen, China’s technology hub bordering Hong Kong.

The fashion brand’s show saw Zhou Xun, China’s awarded actress, supermodel Liu Wen with other stars including Xin Zhilei, Jing Boran and Liu Shishi, and KOLs such as Wang Yibo. Wang Yibo’s post on Weibo drove nearly 100k reposts, one of the biggest buzz on social media in recent months.

Comparing to other luxury houses, Chanel remained a relatively low-key marketing strategy in China in the past - the brand used to only tap high profile movie stars with less active on social media such as Zhou Xun.

ChaPanda is going to roadshow in Hong Kong next week

China’s tea chain Cha Panda plans to launch a roadshow in Hong Kong next week to test the water before going public, according to Chinese media outlet IPOnews.

IPOnews cited an exclusive source that Cha Panda seeks to list in the Hong Kong stock market by the end of this year. As China Retail Watch formerly analyzed, the bubble tea market is facing rising competition.

Cha Panda was founded in 2008, and has opened over 7,000 stores as of this year. The company managed to achieve $580 million in revenue last year and the founder, Wang Xiaokun, has become a billionaire with a net worth of $1.1 billion.

Aesop to expand in China after Shanghai and Shenzhen

Since L’Oreal acquired Aesop, the luxury skincare brand has been expanding in China rapidly. With several locations in Shanghai and a new opening in Shenzhen last month, Aesop is going to find a new destination - Chengdu, the home of giant pandas and a new hotspot for luxury.

The new Aesop store will be located in Taikoo Li, where Louis Vuitton, Dior and other prestigious luxury names operated flagship stores.

The company sees a huge opportunity for China’s high-end cosmetic sector. L'Oreal CEO Nicolas Hieronimus said before that Aesop has “massive growth potential”, notably in China. Meanwhile, Chinese beauty brands are also eyeing the premium market.

However, L'Oreal’s major competitor Estee Lauder said that they were suffering from a weak market for its prestigious business in China.