But over the past five years, the meaning has shifted. Now, when the phrase comes up, there’s a hesitation. An acknowledgement that in too many categories, these imports are now good enough, and in some cases, better than what’s being produced locally.
Manufacturing parity between East and West has been reached in a vast number of categories. McKinsey has flagged a wave of Chinese brands moving from generic commodity messaging to authentic storytelling and premium positioning, proving that brand-building is their next battleground. In its 2024 China Auto Consumer Insights, McKinsey notes that premium Chinese EV brands have adopted direct-to-consumer models delivering superior customer satisfaction across the entire journey. Harvard Business Review’s “China’s New Innovation Advantage” adds that China’s hyper-adaptive market absorbs innovation at unmatched speed, enabling local brands to learn and excel quickly in the brand game.
These imports are building credibility, telling stories, and making it harder for buyers to justify paying a premium simply out of habit.
Look at BYD: once dismissed as a budget EV maker, now reviewed as smart, practical, and well-finished, still priced to hurt rivals. Luckin Coffee: from corporate scandal to overtaking Starbucks in China, then opening in Manhattan 200 feet from Starbucks with a faster, slicker, cheaper offer. Hisense: once a budget TV brand, now a credible mid-market and even premium player, using R&D investment and global sports sponsorships to change perceptions.
These are not anomalies. They follow a clear playbook: raise quality, undercut price, then use brand to legitimise the offer.
Not every category is facing all three steps yet. Many are still battling on quality and price. But once these brands understand the market, the brand work kicks in, and customer loyalty shifts.
So, what to do? If your brand strategy is static, you’re already behind. If you’re leaning on heritage, your moat has already been breached. The rules of differentiation have changed. The divide between “us” and “them” is now level, and in some markets, “they” are playing better.
Our client conversations aren’t about whether this is a threat; they’re about what to do. So ask yourself this: could you be losing market share to something you’ve already dismissed? Every market share slide starts the same way. With a brand dismissing a threat it didn’t think was real.