Summary: China’s soft-power ascent is increasingly powered by consumer brands that resonate globally—from playful collectibles to blockbuster video games and beauty lines—building a more visible, consumer-driven image even as questions about policy and market conditions linger.
China is reshaping its global image beyond traditional narratives of exports and censorship, leaning into consumer brands that resonate with people worldwide. At the center of this shift is a toy phenomenon that has become a symbol of China’s expanding cultural reach: Labubus, popularized by Pop Mart’s “ugly-cute” Labubus keychains, each sold for about $30. The quirky plushies have been spotted with high-profile fans such as Rihanna and K-pop star Lisa of Blackpink, and Pop Mart recently opened its first store in Germany, adding to a global footprint of more than 500 stores.
Pop Mart’s signature blind boxes—mystery packages containing collectible figures—are not just a fad; they are a deliberate growth engine. The company is forecasting a 350% year-over-year increase in profit for the first half of the year, and Goldman Sachs has projected long-term sales for Pop Mart could reach about $11.3 billion worldwide, potentially rivaling the scale of Lego. With its rapid store expansion and a strong lineup of proprietary characters, Pop Mart is positioning itself to challenge established players in Japan and beyond. In 2024, Pop Mart’s sales jumped 107%, compared with Sanrio’s 45% gain in the same period, underscoring China’s new momentum in consumer branding.
Analysts say the appeal of Pop Mart and its blind boxes taps into a broader trend: emotional spending driven by “small pleasures” that cross borders. “IP and chasing small pleasures” is a key theme, according to Michelle Cheng, co-Lead of Asia consumer research at Goldman Sachs. She notes that the appeal isn’t confined to China or Asia but has global resonance as younger consumers seek enjoyable, collectible experiences.
China’s soft power ascent also extends to digital entertainment. Video games that once faced tight regulation are now major drivers of cultural influence. Black Myth: Wukong, based on the classic Journey to the West, sold 20 million units in its first month globally, marking it as one of the fastest-selling titles ever. Genshin Impact, a wildly popular “gacha” game, earned $2 billion in its first year after launch and now attracts more revenue outside China than within it, led by players in Japan and the United States, according to market data.
This rising cultural footprint is reflected in rankings as well. Brand Finance named China the second-most powerful country in its global soft-power index this year, moving up a notch from 2024 and overtaking the United Kingdom for the first time, while remaining just behind the United States. The firm attributed the jump to China’s strategic image-building efforts, a sharpened focus on sustainable development, stronger global brands, and the country’s reopening to visitors after the pandemic. Analysts say the end result is that many young consumers now see China through a more positive lens, recognizing the value of its brands and products.
Yet observers caution that the shift involves a state-led framework that must balance government policy with brand-led storytelling. While the pace of change is evident, whether Chinese brands can sustain this momentum without constraints remains to be seen. In the meantime, the momentum in consumer products and entertainment suggests a broader, more optimistic trajectory for China’s global image.
What this means for markets and audiences: the rise of consumer-driven “soft power” could help Chinese brands expand into new geographies, diversify revenue streams, and influence global tastes beyond traditional export narratives. For investors and partners, the trend signals opportunities in e-commerce, licensing, and cross-border entertainment collaborations, complemented by continued growth in iconic IP and community-driven fandoms.
Overall, China’s branding shift—from policy-centric perceptions to people-centric products and experiences—points to a hopeful narrative: a country increasingly seen through the lens of consumer delight, cultural exports, and global collaboration, even as the broader geopolitical landscape remains complex.