Tech-powered personalization shapes future of consumption

Editor's note: China is evolving into a consumption-driven economy. As it strives to revitalize consumption, the focus has shifted beyond price competition to tailored innovation, where personalized demand fuels premium-quality supply and shapes new consumption landscapes. At this key juncture, Xinhua presents three stories that explore China's "new consumption trends" and their role in driving sustained growth. The second installment in this series explores how mass-market products have pivoted to niche audiences and transformed into stylish brands.

SHANGHAI - From neck-worn electric breast pumps to camellia oil-infused diapers, Chinese small-scale manufacturers have reinvented themselves as pioneering brands, driving innovation to fuel new momentum for high-quality growth.

They have moved away from cutthroat price competition and copying popular designs for cheap alternatives, instead focusing on meeting consumers' increasing demand for uniqueness and personalization.

"China's consumer market is undergoing tremendous transformation," said Tang Jiansheng, deputy secretary-general of the Shanghai Consumer Council. "Future growth will stem from product excellence, emotional connection and cultural significance, fostering a unique Chinese consumption ecosystem."

Brand transformation

A neck-worn electric breast pump, designed to resemble stylish earphones, has rapidly gained popularity in the online market since its debut in April last year.

Produced by the Shanghai-based maternity brand SnowBear, the product's silent, hands-free pumping mode has addressed nursing mothers' increasing demand for privacy, comfort and style. Many online buyers have hailed it as a "gangxu" or a must-have during their breastfeeding period.

Sales of this niche brand have skyrocketed since the product's debut on Pinduoduo, a leading Chinese e-commerce platform, generating a total revenue of 84 million yuan ($11.6 million) by the end of 2024.

Yin Zhifeng, SnowBear's vice-president, attributed the brand's success to its deep resonance with Gen-Z Chinese mothers, who prioritize products that blend tech-driven functionality, stylish design and emotional value.

Yiying, a diaper maker based in Quanzhou, a prominent diaper manufacturing hub in East China's Fujian province, is another example of how local small and medium-sized enterprises are breaking through market competition by innovating new products to expand their profit margins.

Last August, Yiying rolled out a new product that drew on local wisdom by infusing camellia oil, traditionally used to soothe diaper rash. Sales soared, reaching one million units within a month of its launch.

This personalized innovation has pushed per-unit diaper prices beyond 1 yuan, with some selling for as much as 1.6 yuan per piece, a price tier previously unattainable for domestic diaper brands.

Flexible production

Amid the rising popularity of traditional Chinese attire, the "Mamianqun," a long pleated skirt crafted by clothing workshops in Caoxian county in East China's Shandong province, is experiencing robust sales.

This commercial success didn't stem from the factory owners' newfound business acumen but was driven by the smart production capabilities of COSMOPlat, an industrial IoT platform developed by China's home appliance giant Haier, headquartered in Qingdao.

Initially, small manufacturers in Caoxian hesitated to scale up mass production due to concerns over the risks of rapid style obsolescence in the fast-paced e-commerce market.

During a visit to a garment workshop in Qingdao, a delegation from Caoxian was impressed by COSMOPlat's flexible production line, which enabled small-batch, rapid-response manufacturing -- a stark contrast to traditional rigid assembly systems. This innovation allowed multiple styles to be produced on a single line, cutting the production cycle from 20 days to just seven.

Finally, a full-process digital Mamianqun factory was inaugurated last March in Caoxian through the partnership with COSMOPlat.

Efficiencies in order management, data-driven production decision-making and AI-optimized warehouse operations have significantly improved, driving daily output from just hundreds to over 10,000 pieces.

Like Caoxian's cloth-makers, a growing number of Chinese upstream manufacturers are also exploring ways to map out granular, precise and forward-looking consumer profiles to cater to personalized tastes.

In Wenzhou, one of China's key shoe manufacturing hubs, Kangnai is revolutionizing footwear design with its groundbreaking "foot arch database."

With a repository of over three million digital footprints, this cutting-edge system connects customer needs with factory designs, rendering a seamless pathway to high-end custom shoes that perfectly match individual foot shapes.

Combining digital technology with manufacturing and market accessibility has been highlighted in this year's government work report.

"The wide use of 5G, AI and IoT technologies have supported new consumption patterns," said Wang Wei, a researcher at the Development Research Center of the State Council.

"They've broken traditional consumption barriers, created smart consumption scenarios, and enabled diverse new products," Wang added.