🗣 China's great pre-made food debate, and 12 other consumer market updates | Following the Yuan

Brands mentioned in this issue: PopMart, Kuaishou, Starbucks, Diageo, Haidilao, Chagee, AMI, HongShan (Sequoia China), H&M, Alibaba, Amap, Douyin Life Services, Madame Tussauds, Hyrox, GlocalMe

Hi it’s Yaling. I start writing this as I fly back to China for some family time — I’m excited to absorb as much color as possible on the ground. I missed how, as a public debate happens, everyone from national media to vloggers to uncles who chill on the street is ignited and want to share their two cents with the world.

The exact thing happened last Wednesday when media personality, entrepreneur Luo Yonghao commented on restaurant chain Xibei’s pre-made food status, which was responded to directly by its CEO on video: “None of our dishes were pre-made!”

I believe this has a net positive outcome, after all, please see the corresponding item in the FOOD & BEVERAGE section. Other brands we will mention in this issue are: PopMart, Kuaishou, Starbucks, Diageo, Haidilao, Chagee, AMI, HongShan, H&M, Alibaba, Amap, Douyin Life Services, Madame Tussauds, Hyrox, GlobalMe.

This month, I’m hosting another webinar with

Baiguan

, on the rationale and examples behind ‘involution’ as Beijing’s anti-involution efforts continue to take shape. (For those who are trying free trials. If you don't intend to pay going forward, I suggest you to set a calendar reminder to cancel!)

🎭 CULTURE

The Labubu social pyramid // Many Chinese consumers are baffled at how wildly successful Labubu is, so much so that some schools in Australia, Singapore, Dubai, Iceland are banning students from taking them to campuses. Problems caused by the mischevious-looking doll include: bullying, creating social pyramids, theft. One student even ended up getting expelled. One Chinese user (possibly a parent) shows understanding: “You can’t avoid its social identity, those who wear Imoo smart watches don’t play with those who don’t.”

Short-video platform throws its own “Summer Gala” // Forget CCTV’s tightly scripted “Spring Gala,” set around the time of China’s annual Spring Festival, short-video platform Kuaishou [HKG: 1024] just staged its first-ever “Super Summer Gala” this week, aiming straight at Gen Z. As consumers get fatigued with the likes of Double 11 and marketing holidays, could this revive their excitement?

🍽️ FOOD & BEVERAGE

Starbucks reveals next-stage China plan // According to financial publication CLS on Sep. 11, Starbucks [NASDAQ: SBUX] has shortlisted Boyu Capital, Carlyle Group, EQT, and HongShan (previously Sequoia China) as their final bidders of its China business. The transaction is expected to be finalized by the end of October. CEO Brian Niccol already distilled the ambition to CNBC: expanding the store number in China from 8,000 to 20,000 to 30,000.

Defining pre-made food // After the initial blowup between Luo and Jia as mentioned above, journalists across China paid their visit to Xibei and found the opposite of Jia’s promises: the kitchens were full of pre-packaged ingredients and dishes. [See my 2023 notes about the sector’s driving factors, leaders and newcomers.]

Netizens were stunned at the “organic broccoli” with an expiry date of 24 months, some chirped: it's even older than the young kids who are eating their children’s meals.

Since its wide adoption, which has been encouraged by the State Council in 2023 as a key step to boost rural revitalization, the definitions of pre-made foods remain ambiguous. This is a good time to fix that.

Hotpot chain sells breakfast // Haidilao [HKG: 6862] wants to be as much your go-to breakfast stop as your late-night hotpot fix. It opened its first community store in Beijing in early Sep., offering 18 tables plus an all-day lineup of eats from a breakfast cart to a deli counter. Morning staples include buns, dumplings, soy milk and congee, priced at just 1–5 RMB.

💄 FASHION & BEAUTY

Giving it another go //On Sep. 9, China’s House of H&M [ST: HM.B] opened doors on the same site of H&M’s first China store, signifying a new start in the market since the Xinjiang cotton controversy put a dent in its business. The store encompasses 5,990 square meters over five floors, with the only H&M HOME and first H&M&CAFÉ in China.

AMI PARIS’s new ambassador and new…owner? // Chinese capital-owned French label AMI PARIS announced 24-year-old Zhou Yiran as the brand’s global ambassador. In the release, the brand said it showcases the brand’s strategic plan to deepen its roots and emotional connections with the China market. At the same time, HongShan, its owner since 2021, is reportedly considering a sale.

🛍️ RETAIL

Platforms swarm to support small businesses // Alibaba [NYSE: BABA]’s navigation app AutoNavi, with 170 million DAU, just launched the Amap Street Ranking, which is akin to the combination of Google + Yelp for small mom-and-pop shops. In addition, AutoNavi rolled out the Thriving Small Shops Program (“烟火好店支持计划”), offering over 1 billion RMB in subsidies to encourage users to visit stores. On Sep.10, Douyin Life Services launches a similar initiative named Small Shop Support Program (“烟火小店扶持计划”).

🌍 TRAVEL & TOURISM

China rolls out visa-free trial for Russian visitors // Starting on Sep. 15, Chinese authorities will allow Russian passport holders to enter China visa-free for up to 30 days for business, tourism, visiting friends and family, cultural exchanges, or transit. According to Ctrip data, Russia has already been among the top three source countries for inbound travel this summer, with tourism bookings from Russian visitors jumping 150% year-on-year since this July.

Madame Tussauds Beijing to close for good // Madame Tussauds in Beijing will permanently shut its doors on October 1, 2025, marking the second Tussauds closure in China in just six months after the Chongqing branch. Apparently, taking selfies with celebrity wax figures is no longer enough to charm consumers in China, or elsewhere. They are giving way to more immersive experiences, like LEGOLAND in Shanghai, proving that early foreign “internet-famous” theme parks are past their prime.

🏃‍♂️ SPORTS

Marathon nurse faces backlash // Zhang Shuihua, a nurse from Fujian,, won the domestic women’s title at the Harbin Marathon, but didn’t realize she had to fight another battle with public opinion, After the race, she tearfully complained about difficulties getting time off from her busy nursing job. Many netizens criticized on her self-interest, sparking an online backlash that even spilled into sponsor 361° [HKG: 1361]’s livestream. On September 3, the domestic sports brand cut ties with Zhang. Winning a marathon shouldn’t come with this much drama.

Second Hyrox in China broke attendance records // The total number of participants in this indoor fitness competition reached 4,700, tripling the turnout of last year’s Beijing debut. The male-to-female ratio stood at 1.27, a level of gender balance that is exceptionally rare in fitness competitions, sports trade publication ATP noted.

🐾 PET

PetPhone lets you call your furry friends // Traditional pet wearables mostly track location or steps, but the newly launched PetPhone takes things to sci-fi territory. On Sep. 1, mobile wi-fi producer GlocalMe under uCloudlink [NASDAQ: UCL] launched the world’s first device to support real-time two-way calls for pets and their owners. Judging by memes of children attaching their Imoo smart watches to pets, we know where the inspiration comes from.

🗓️ UPCOMING – PICK & CHOOSE YOUR CHINA ITINERARY IN SEP 2025

• Sep 17-19 China (Shenzhen) Cross-Border E-Commerce Fair, Shenzhen

• Sep 18-21 Tops Chengdu Pet Expo, Chengdu