NEWS  /  Analysis

10 Marketing Trends for 2025

By  AsianFin-staff  Dec 26, 2024, 10:31 p.m. ET

The concept of brand perception is being revisited, and brand advertising is making a comeback.

**Written by | Marketing Insights from Xunkong**

As 2024 draws to a close amidst fatigue and unease, the Oxford University Press has chosen "brain rot" as the word of the year, directly highlighting the fragility of modern mental states. Under the erosion of excessive consumption of fragmented, low-quality content, our intelligence and ability to think are being quietly diminished.

For 2024, Xiaohongshu's word of the year is "abstract." This term is used when a person is overwhelmed by a chaotic barrage of meaningless information and struggles to find any logical thread, resorting to the term "abstract" as a summary.

Bilibili's word of the year is "accept," which, rather than expressing a desire for opportunities, reflects a somewhat passive mindset of lying flat, hoping to passively receive the favors of fate.

Slightly more positive is the Collins Dictionary's word of the year, "brat." Originally meaning "mischievous child" or "rascal," in 2024, it has been redefined to represent an attitude of confidence, independence, and living in the moment. This is related to British singer Charli XCX's new album "BRAT," where she portrays a carefree, wild, and straightforward girl. However, in my view, this is more of a reflection of individuals seeking self-comfort in the torrent of the times.

These words of the year collectively paint a portrait of the era: people, swept up in short videos and fragmented information, have long distanced themselves from grand narratives and national destinies, even losing the ability for deep reading and thinking. They are addicted to instant sensory stimulation, seeking proof of existence in brief dopamine releases, where obtaining small pleasures has become a capital worth flaunting.

The IMF's "World Economic Outlook" report predicts that global economic growth will remain stable in 2025, but with a lackluster pace. This lack of exciting growth, to some extent, sets the tone for the continuation of these words of the year into 2025.

People can only find small meanings in the seemingly meaningless wait for Godot.

Marketing will continue to carry forward this atmosphere. While 2025 may not bring dramatic upheavals, subtle trends are already beginning to emerge amidst the quiet. In this era of deceleration, marketing must find a new rhythm amidst the noise and redefine what true connection and value mean.

Here are ten marketing trends worth paying attention to in 2025.

Revisiting Brand Perception: The Resurgence of Brand Advertising

In recent years, China's marketing landscape has been dominated by a "traffic-first" mindset. From short videos to livestream e-commerce, brands have raced to chase trends and traffic in hopes of driving sales quickly. However, as the traffic dividend gradually diminishes, the limitations of this model have become increasingly apparent: growth driven solely by traffic is no longer sustainable.

In 2024, we began to witness a shift—though it might be more accurate to call it a "return to old principles": a renewed focus on brand perception and a resurgence of brand advertising. This shift is not so much a result of brands becoming more enlightened but rather an inevitable response to reality. When traffic loses its effectiveness, brands are compelled to look back and realize that long-termism and brand building remain fundamental and indispensable.

For example, platforms like ByteDance's Giant Engine introduced tools to measure brand perception, while Bilibili emphasized the importance of brand perception in its audience modeling. Brand perception is not a new concept but rather a rediscovery and application of classic marketing theories. At its core, it involves sustained investment in brand advertising to establish strong brand recognition and preference in consumers' minds, thereby achieving long-term brand value accumulation.

The subtle market shifts can also be observed in the actions of major platforms. Traffic-driven platforms are beginning to reemphasize the role of brand advertising alongside performance advertising. With the rapid growth of performance advertising revenue nearing its limit, these platforms are now turning back to capitalize on brand advertising.

This trend is also reflected in the attitudes of advertisers. According to iResearch's 2024 data, 86.7% of advertisers acknowledge the importance of brand building, yet short-term growth in returns still dominates budget allocations.

This tension between idealism and reality is a true reflection of the current advertising market. However, more and more brands are beginning to recognize that short-term traffic can only provide a temporary boost in sales. To truly establish a foothold in the market, brand building is an indispensable long-term investment.

In 2025, we may witness a greater resurgence of brand advertising. This is not only a consequence of the end of the traffic dividend but also a rational return to long-termism by brands. The value of brand advertising lies in ensuring that a brand doesn't just occupy a spot in consumers' shopping carts but also secures a lasting place in their memories and emotions.

The Trend of Low Consumption Persists as Generic Brands Continue to Expand Their Market Share

Dining on budget-friendly meal options, drinking coffee priced under 9.9 yuan, shopping only in the basement levels of malls (B1 and B2), opting for affordable alternatives instead of luxury brands, and choosing generic brands over established ones—these have become the consumption habits of many young people today. This trend of "consumption downgrading" has been ongoing for several years, and in the face of uncertain prospects and an unclear future, there are no significant signs of reversal.

Against the backdrop of consumption downgrading, consumers have become significantly more price-sensitive, and fewer people are willing to pay a high premium for brand value. Instead, more and more consumers are gravitating toward products that are lower in price and higher in practicality, creating an excellent market opportunity for the rise of generic brands.

Over the past two years, I’ve witnessed the rapid growth of several generic brand chains in cities like Beijing, such as Wankelai and Chaoyiku (the latter could even be considered an affordable alternative to Uniqlo). The clothing in these stores is either unbranded or self-branded, with average prices typically ranging between 30 to 50 yuan. Despite this, they attract a significant number of shoppers, including middle-class consumers.

This phenomenon indicates that consumers are gradually moving away from the vanity associated with paying a premium for brand names and are instead focusing more on the practical functionality and cost-effectiveness of products.

In the short term, the market share of generic brands is expected to continue expanding.

Brands Begin to Emphasize Quality-to-Price Ratio

If the rise of generic brands signifies a trend toward low consumption, then the growing popularity of the "quality-to-price ratio" reflects a more rational consumption trend. Instead of simply chasing the lowest prices, a large segment of middle-tier consumers is now adopting a "quality-to-price ratio" mindset: purchasing high-quality goods and services at reasonable prices.

According to the *2023 Consumer Trend Report* by Yicai, the "quality-to-price ratio" is becoming a core concept for consumers. It goes beyond the traditional notion of cost-effectiveness by not only focusing on price but also emphasizing product quality, advocating for a "worthwhile spending" experience. The rise of this consumption philosophy indicates that consumers are rejecting the vanity of brand premiums and are also growing weary of the dissatisfaction caused by cheap, low-quality products. Instead, they are seeking a balance in the mid-tier market.

From a market positioning perspective, products that emphasize the quality-to-price ratio are typically aimed at the mid-tier market, with middle-class consumers as their primary target audience. While these products are not as expensive as those in the high-end market, they are by no means cheap. In many developed regions, products with a strong quality-to-price ratio have already claimed a dominant position in the market.

In 2024, we’ve observed that some brands have started emphasizing the concept of "value-for-quality" in their marketing strategies. For instance, Douyin E-commerce has upgraded its positioning to "Super Heartbeat Value-for-Quality" through its Mall Super Brand Day campaign. Collaborating with multiple brands, it aims to offer more competitive prices while ensuring product quality.

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