For many years, a product’s foreign origin was one of the simplest ways to build trust in the Chinese market. In many categories, being from Europe was often enough. For a large group of consumers, that alone was seen as a signal of quality.
Today, that mechanism is much weaker.
The cosmetics industry is a good example. Fifteen years ago, European, Japanese and American brands dominated many parts of the market. Today, Chinese companies such as Perfect Diary and Proya compete successfully not only on price, but also on product quality, design, marketing and their understanding of local sales channels.
This does not mean European companies have lost their edge. The nature of that edge has changed.
A few years ago, country of origin was often a sufficient argument on its own. Today, it is more likely to be the starting point for further evaluation. Increasingly, what matters is the ability to demonstrate quality, safety and credibility.
Not every market segment is changing in the same way. In luxury, European brands still hold a very strong position. Names such as Louis Vuitton, Hermès and Chanel remain symbols of status and prestige. The bigger shift has taken place in the middle of the market, where local companies have learned how to compete effectively with foreign brands.
The change is also visible in the way purchasing decisions are made. Chinese consumers are far more likely than before to check ingredients, certifications, customer reviews and information about the manufacturer. In many categories, the process looks more like due diligence than an impulse purchase.
At the same time, the places where people search for information are changing. Xiaohongshu, WeChat, Baidu and increasingly AI systems are becoming the first point of contact with a brand. In many cases, users form an opinion about a company before they ever visit its website.
This creates a new reality for European businesses.
For many companies, the key question is no longer simply whether they have a good product. The more important question is whether a Chinese customer can understand the product’s value before any direct contact begins.
This is one reason why visibility within Chinese-language information and communication channels is becoming increasingly important. Not because these channels replace the product, but because they help explain and interpret it in a way that makes sense to a Chinese audience.