#74: AI short drama, Patagonia’s “earth tax” backlash, “drink-for-you” on demand, Lay's potato resto 🥔 | Following the Yuan
Chinese consumers are eating more instant noodles, not for economic reasons.
Brands mentioned in this issue: Master Kong, BOSS Zhipin, Meituan, MUSINSA, Didi, Tencent, Lay’s, RedNote, Foxconn, Apple, Patagonia, ZXMOTO.
📊 BIG STAT
Chinese consumers are eating more instant noodles, not for the reason you think // Over half of Chinese consumers increased their instant noodle intake over the past year, with more than 40% saying they eat them simply because they enjoy the taste, according to a 2025 iiMedia Research survey.
Market leader Master Kong reported revenue of 28.4 billion RMB in 2025— its first growth in three years — while group-level gross margin climbed from 33.1% to 34.8%, driven by premiumization and lower raw material costs. This suggests that instant noodles are replacing their “poor ghost” image with a conscious comfort-food choice.
🎭 CONSUMER CULTURE
AI-generated short dramas break into the mainstream // Two AI-made viral hits are signaling a new chapter for China’s short drama industry.
Huo Qubing, a historical war epic produced by a ~20-person team in 48 hours with just 3,000 RMB in computing costs, racked up hundreds of millions of views and sparked heated industry debate about AI’s disruptive potential in filmmaking. Meanwhile, Snow Mountain Fox Rescue, a slapstick AI short originally made to sell soy roasted duck, snowballed into a 5-billion-view phenomenon as government accounts, brands, and millions of users remixed it into an endless stream of parodies.
BOSS Zhipin launches dating app as recruitment growth slows // China’s leading recruitment platform BOSS Zhipin has entered the dating market with a rebranded app called “Kanzhun”, as its core business hits a ceiling.
Hit by the gloomy job market, its 2025 revenue growth halved to 12.4% compared to 2024, and paid enterprise clients are plateauing amid competition from Douyin and Kuaishou. The move leverages the company’s existing verification processes: users seeking matches can authenticate via social insurance records, corporate WeChat credentials, and work IDs, repurposing BOSS Zhipin’s identity-verification moat from hiring into matchmaking.
💄 FASHION & BEAUTY
Korea’s MUSINSA accelerates China expansion, backed by Anta // Korean fashion platform MUSINSA is aggressively pushing into China, planning to open 10 stores in 2026 and 100 by 2030. The company formed a joint venture with Anta Sports in April 2025, and its first international flagship opened in Shanghai last December. Often dubbed “Korea’s Uniqlo,” MUSINSA is now preparing for an IPO filing in H1 2026.
Shanghai Fashion Week AW2026 wraps up // The AW2026 edition of Shanghai Fashion Week ran from late March through early April under the theme “Level Up.”
The opening and closing shows were presented by domestic brands HPLY and EP YAYING respectively, while top Chinese independent labels including Feng Chen Wang (celebrating its 10th anniversary), Short Sentence, 8ON8, JACQUES WEI, COMME MOI, and SUSAN FANG headlined the runway. One of the season’s biggest highlights was Maison Margiela’s global debut of AW2026 in Shanghai.
🍽️ FOOD & BEVERAGE
Lay’s opens first-ever “potato restaurant” in Shanghai // Lay’s has launched its first “Potato Restaurant” at CALIX in Shanghai, transforming the venue with its signature lemon-yellow branding and a collaboration with fashion label 8ON8. The pop-up features creative East-meets-West potato dishes, including four Shanghai-exclusive potato gelatos, and a limited menu co-designed by former Michelin chef Francesco Bonvini.
🛍️ RETAIL
Meituan tests “fortune-telling meal box” feature // Meituan has quietly rolled out a new in-app feature called “Destiny Delivery Blind Box,” which uses a so-called “Yi Jing algorithm” to decide what users should eat. The tool claims to factor in a user’s birth chart, real-time location, weather, star alignment, and even phone battery level to generate a “fated meal of the day.” This service is currently available in Beijing, Shanghai, Chengdu, and Hangzhou.
Didi tests “drink-for-you” proxy service // Didi has introduced a new “proxy drinking” service targeting young professionals dreading work dinners and obligatory drinking culture in Beijing, Shanghai, Guangzhou, Shenzhen and Hangzhou.
Users can hire stand-in drinkers rated by alcohol tolerance and social skills — standard proxies just drink, while premium ones deliver eloquent toasts and deflect rounds on your behalf. Shandong-native drinkers, famed for their capacity, cost an extra 100 yuan. An 888-yuan all-night unlimited package is also available.
🧠 TECH
RedNote to launch cross-border e-commerce platform “Redshop” in June // RedNote’s cross-border e-commerce platform Redshop is set to officially launch in June 2026, with an initial invite-only rollout targeting seed merchants in categories like intangible cultural heritage crafts and artisanal goods. The move marks a major step in RedNote’s ongoing push to close the loop between content and commerce, and in joining the ‘going abroad’ wave after its 2025 #tiktokrefugee fame.
Foxconn begins trial production of foldable iPhone // Foxconn has started trial production of Apple’s first foldable iPhone, with a launch expected alongside the iPhone 18 Pro series in September.
The device is expected to feature a book-style fold design with a ~7.7-inch inner screen and ~5.3-inch outer screen, and is being called the most significant iPhone redesign since the iPhone X in 2017. Pricing for the China market is estimated to start at 14,000-15,000 RMB, with top configurations potentially exceeding 20,000 RMB, making it Apple’s most expensive phone ever.
🏃♂️ SPORTS
Patagonia’s China-only “earth tax” on returns sparks backlash // Patagonia’s Tmall store began charging a refundable “Earth Usage Fee” since April — 15 RMB for the first item, plus 5 RMB per additional item — which is kept and donated to the SEE Foundation’s “1% for the Planet” program if the customer returns any items, refunded in full if they don’t. The stated rationale? China’s e-commerce return rates for womenswear run as high as 65–80% post-COVID, far above Western averages, and generate significant carbon emissions.
However, the move triggered a fierce backlash, with consumers arguing that the brand’s global “1% for the Planet” pledge donates from its own revenue, while this policy makes shoppers foot the bill for the brand’s environmental image.
ZXMOTO sells out after historic WSBK win // Chongqing-based motorcycle maker ZXMOTO (Zhang Xue Motor) is experiencing a demand surge after its 820RR-RS became the first Chinese motorbike to win at the World Superbike Championship in Portugal in late March, breaking decades of European and Japanese dominance. The 2026 820RR and 500RR models racked up nearly 10,000 pre-orders within 10 days of launch — close to half of the brand’s entire 2025 sales volume.
🌍 TRAVEL & TOURISM
RedNote builds an immersive “Story City” at Mount Emei // RedNote held its second REDGALA event on March 27–28 at Mount Emei in Sichuan, constructing an immersive “Story City” made up of beloved film and TV IPs — visitors could pose with Judy from Zootopia 2, wander through the ghost market from Strange Tales of Tang Dynasty, or even rewrite unsatisfying endings from classic dramas like Chinese Paladin 3.
The event also featured RedNote’s first-ever entertainment awards ceremony, putting works at center stage, with winners determined by user discussion and fan-created content rather than ratings or box office numbers.
War jitters and oil prices hit China’s May Day travel // The U.S.–Iran conflict has disrupted far more than Middle Eastern itineraries — with Gulf hub airlines intermittently grounded, a key China-to-Europe transit artery is severed, jet fuel has spiked 12% in weeks, and the International Air Transport Association (IATA) projects global airfares will rise up by 9% as a result. Even destinations far from the fighting are seeing mass cancellations, as consumers opt to stay home rather than navigate uncertainty.
🐾 PET
Tencent Video launches “Pet TV” channel // Tencent Video has begun trialling a “Pet TV” channel designed for pets.
Sourced from overseas channels like DOGTV, the content is tailored to cats’ and dogs’ distinct visual and auditory perception: the dog section focuses on calming content with breed-specific playlists, while the cat section features dynamic tracking and prey-chasing visuals to stimulate hunting instincts. Although China still lacks regulations to protect companion animals, this marks a notable step towards a more inclusive pet economy.
🗓️ UPCOMING – PICK & CHOOSE YOUR CHINA ITINERARY IN APR 2026
Apr 15-17 2026CHINASHOP, Hangzhou
Apr 23-27 The 139th Canton Fair International Pavilion, Guangzhou
Apr 27-29 Food & Beverage Innovation Forum, Hangzhou
Editor: Yaling Jiang.