Consumer Tech Boom in China in 2025 .

The consumer technology landscape is buzzing with activity. Key drivers for this global growth include: 

• IT, small domestic appliances, and telecom sectors are leading the charge

• Replacement cycles for products purchased during the 2020 lockdowns, particularly mobile PCs and gaming PCs, are kicking in

• The potential of AI functionality in devices, although consumer awareness of visible benefits still needs to be cultivated

• A continued push towards immersive home entertainment, with a demand for larger TVs surging

• Health tech is emerging as a top performer, with wearables showing accelerating growth driven by AI-powered predictive health features and personalisation

• The increasing importance of promotional events in driving sales, with consumers planning purchases around seasonal deals more than ever

China Leads the Digital Charge

The first four months of 2025 have seen an impressive increase in online sales of digital products across the country. This surge is largely attributed to:

• Skyrocketing demand for smart robots, which experienced an astonishing jump in sales

• Strong growth in smart home systems, reflecting a growing consumer shift towards connected living spaces

• The effectiveness of China’s trade-in programs, which incentivised consumers to upgrade their electronics, has led to a rise in sales for 15 categories of home appliances and digital products

• The seamless integration of domestic and international trade within the e-commerce sector

• Significant growth in online entertainment and travel sales, indicating a broader digital-first consumption trend

AI: The Future Powerhouse

While AI is widely recognised as a major technological force, only a small percentage of global buyers currently cite AI as their primary purchase driver, although this is increasing year-on-year. This suggests a crucial opportunity for manufacturers and retailers to educate consumers on the tangible benefits and practical applications of AI-enabled devices to unlock its full potential.

What Does This Mean for the Industry

The consumer tech industry is entering a dynamic and promising period. To capitalise on this growth, manufacturers and retailers must:

• Innovate with purpose – develop products that offer clear value, enhance everyday experiences, and provide visible returns on investment

• Prioritise value –while premiumisation is key, especially through AI, it must be intuitive, accessible, and beneficial to consumers

• Target emerging markets – regions like China are poised to drive significant value growth

• Leverage promotional events – strategically plan for major sales periods to move inventory and encourage premium purchases

• Embrace smart tech – The demand for smart robots, smart home systems, and AI-powered devices is undeniable and will continue to grow

• Educate consumers on AI – communicate the “visible” benefits of AI to transform it from a latent differentiator into a primary purchase driver

The tech landscape in 2025 is shaping up to be an exciting one, filled with opportunities for those who are agile, responsive, and committed to delivering real value to the evolving consumer

Interested in other ways in which the tech industry is evolving in China? Contact a member of our team today!