On March 15th, China’s 315 Gala exposed a number of brands violating consumer regulations, causing a stir in the industry. Following the event, consumers demanded action from regulatory authorities against the involved companies and products, leading to targeted efforts by regulators to monitor and enforce compliance in the consumer market. Many brands are uncertain about how to navigate the new regulatory direction and effectively advertise their products in this sensitive time. This article will explore the emerging trends in the Chinese consumer market revealed at this year's 315 Gala and provide future recommendations for brands on effective marketing strategies.

1. Exposure of consumer industry issues at 315 Gala signals China's continued emphasis on consumer market regulation

The theme of this year's 315 Gala was “Illuminate Consumer Confidence with the Light of Integrity.” The issues raised aimed to improve consumer rights protection, promote market integrity and stimulate consumer spending. The issues exposed generated a significant amount of public discourse. Data from CCTV Finance and the Xinlian iNews full-media big data public opinion platform showed that media coverage of non-compliant activities in various consumer industries received widespread attention within two days of the event. The volume of public discourse on consumer issues resulted in thousands of articles being published. (time range: March 15th, 8 pm to March 17th, 9:30 am).

（The highly concerned issue）

The problems exposed in the consumer industry can be categorized as follows:

• Food safety issues: This is the most concerning issue for consumers since some food production companies use expired raw materials, add non-food substances, and even manufacture and sell unqualified food by falsifying labels.

• False marketing issues: The exposed brands mainly involve false marketing and consumer fraud. For example, some e-commerce platforms mislead and deceive consumers by using big data-enabled price discrimination against existing customers, placing false purchase orders and manipulating credit ratings, false promotions, and other methods; online education platforms engage in fraudulent behavior such as false advertising, mandatory renewals, and malicious deductions, which harm the legitimate rights and interests of students and parents.

• Compliance violation issues: This mainly refers to brands that are exposed for not complying with national standards and being circulated in the market without national approval and review. For example, some medical beauty institutions use non-standard products, conduct illegal operations, and conceal risks, which can harm consumers' physical health.

• Product quality issues: Besides food quality issues, the gala highlighted substandard products in other consumer areas. For instance, some automobile repair companies use substandard parts to deceive car owners, and low-quality electric bicycle helmets have caused frequent accidents and injuries to consumers.

（Exposed case examples）

Unlike the previous regulatory style of cracking down on big brands, this year's 315 gala exposed more issues from small brands. This reflects a new trend in China's market brand regulation by its regulatory authorities. We anticipate the Chinese government will focus more on the entire market chain, reaching the consumer market more and strengthening its supervision of small brands' quality issues.

The consumer cases exposed in the 315 Gala are closely related to people's livelihoods and fully respond to the goal of protecting consumer rights and interests. On the other hand, the education provided by the 315 Gala over the years has also raised Chinese consumers' expectations for brand quality and promotional channels. The media response shows that while consumers demand diversified consumption needs in the market, they also pay an increasing attention to the brand quality.

2. Facing stricter regulations in China, brands should conduct self-examinations and choose experienced marketing partners

In light of China's new regulatory trends, evolving consumer market dynamics, and high consumer demands, what should brands pay attention to advertise their products in the Chinese market effectively?

2.1 Conduct comprehensive monitoring and record the gala's content

During the gala, the main point of public opinion is often driven by Weibo, where news and self-media accounts frequently update the latest developments of the event, influencing online discussions. Therefore, brands should focus on official media, rights protection accounts, and financial influencers. Moreover, companies can summarize and analyze the issues exposed during the gala. Self-examination and careful analysis of internal brand weaknesses can identify key points for crisis prevention and improve marketing strategies.

2.2 Select suitable partners for public opinion monitoring and digital marketing

QS Search would like to help brand owners to effectively promote in China with our professional marketing advice. QS Search have extensive experience in marketing in China, and have successfully led foreign partners into the Chinese market throughout the past 8 years. QS Search provides a range of digital-related value-added service to our partners to serve their promotional needs, such as a comprehensive advertising audit and risk assessment service, which aims to check brand’s promotional materials to ensure the compliance of regulations in China, as well as providing industry-related information and analysis to our partners. QS Search hope to serve as a communication bridge between our partnering brands and Chinese consumers.

If you want to learn about more new trends in China's consumer market, please get in touch with us at enquiry@so360.hk.