So what are the new trends from the cool economy in China and how have brands benefitted from this? Let’s take a look. Trends from the Chinese cool economy While the cool economy has always been around in China, 2022 is the year that China is not only battling its worst heat waves on record but also the year when the heat waves are coinciding with Covid restrictions, some of which remain in place.  Of course, this means a rise in sales of specific products that only comes about one season a year. Ice cream craze Nothing beats the heat quite like ice cream. To no one’s surprise, frozen treats are in demand in China. According to iiMedia Research, the market size of China’s ice cream industry has always maintained steady growth, reaching 160 billion yuan in 2021 and is expected to reach 167.2 billion yuan in 2022. Companies that are taking advantage of the ice-cream mania are offering ice-cream bars fashioned like tourist attractions, alcohol-infused alternatives, and other unusual flavours. Moutai, Zhōngjiē 1946, Yili and Mengniu are among the most profitable Chinese players in the market. Prices for ice cream have also increased in line with consumers’ growing desire for the product. Domestic brands, such as Chicecream, are grabbing a bigger piece of the high-end market that was previously dominated by Häagen-Dazs with flavours like dark chocolate, sea salt and coconut. High demand for cooling appliances Sales of air conditioners, fans and ice mats have skyrocketed in China this year. According to JingCanMou, monthly sales of air conditioners on JD.com exceeded four million in June, an increase of more than 250 per cent from May. Compared with last year, the overall sales volume of the air-conditioning industry in June was also higher than the same period last year, with sales up 22 per cent year-on-year, and sales up 18 per cent year-on-year. A Chinese home appliance maker has even created a wearable air-conditioning system just for Covid-19 workers wearing hazmat suits, as daily testing becomes the new normal for millions of people throughout China.  The 3kg wearable device includes an air conditioning system and a cooling vest. According to the manufacturer, it has a temperature adjustment range of 16-25 degrees Celsius and can run for three hours after being fully charged. According to Feigua data, among the top 10 best-selling dog and cat products from June 12-July 11, six were summer-specific products, mainly ice mats and coolers, which accounted for 31 per cent of total sales. Sun protection is increasingly popular Sales of sunscreen-related products on Meituan’s takeout increased 74 per cent in July compared to the previous month. Sunscreen spray, sunscreen, sunscreen umbrellas and ice sleeves were the most popular sunscreen products. In addition, various “heatstroke prevention and cooling” products, such as cooling stickers, cooling sprays, and cooling wipes have also been popular with consumers.  According to the “2022 Taobao Live Sun Protection Report”, from January to April 2022, sales of sun protection masks have increased by 1462.5 per cent, and sales of sun protection clothing and sun protection cosmetics have increased by 188.1 per cent and 63 per cent, respectively. Euromonitor forecasted that the size of China’s sun protection market would continue to expand by double-digits between 2020–2024 to reach 24.4 billion yuan by 2024. This year, there has never been more demand from consumers for sun protection gear. Young people are especially susceptible to this. Modern “hard sun protection”, which refers to apparel and accessories rather than sunscreens and lotions, is considerably more appealing to the fashion-forward, and frequently comes in a variety of pastel hues, high-quality materials and cutting-edge technical designs Longtime domestic competitors in the field of sun protection, OhSunny and Bananaunder, have recently started to shift their focus to apparel. And their varied and “refashioned” items are undoubtedly producing promising outcomes. OhSunny witnessed a three-fold increase in sales in 2021, while Bananaunder’s revenue for the same year exceeded US$375 million (2.4 billion RMB). Domestic summer tourism is back It’s not just China’s temperatures that have been rising this summer; domestic travel demand is also predicted to recover from the months-long effects of the rise in local Covid cases.  The number of flights booked from other cities to Sanya, Hainan, increased by 93 per cent over the weekend of June 25-26. The number of travellers arriving by plane from Shanghai increased noticeably as well. According to Qunar, the number of flights booked to Haikou, the province capital, increased by 92 per cent over the previous weekend. The market is anticipated to resume its recovery process with the introduction of numerous supportive policies, which also helped boost consumption. The uptick in demand is anticipated to experience widespread support. By 2024, outbound travel from China will resume in a “strong wave” that will reach pre-pandemic levels. These forecasts are supported by plans made public by the nation’s aviation regulator, which has released a five-year development plan with a particular emphasis on increasing internal flights and resuming international air travel by 2025. How can brands benefit from the cool economy? With the cool economy still raging on with the seemingly never-ending heat, brands in China have been taking advantage of the market. Whether it’s through brand collaborations or by offering customers a chance to cool off by touching a block of ice, consumers are enjoying what brands have to offer in this blazing hot summer. Offer kindness in warm times A volunteer nucleic acid tester posted on the social media app, Xiaohongshu, complaining about the hot weather this summer. Restaurant brand, WuLaLa, saw the post and gave the original poster a whole year’s worth of milk tea coupons. This move was praised by netizens online. WuLaLa then announced that all medical staff that can show their work permit to the restaurant are able to receive the same coupons. WuLaLa’s inadvertent act of kindness made the hot summer a little cooler, and also ushered in unexpected exposure. The original article received 66,000 likes and was on the hot search list on Xiaohongshu. By showing this act of kindness, WuLaLa was able to interact with fans and show that they are a brand you can support with a good conscience.  Offer a unique cooling experience Source: Tuoyang Moji Weather set up giant ice blocks up to one metre tall at many landmarks this summer, such as the Beijing International Trade Center and Taikoo Li Sanlitun, and encouraged passers-by to “play” with the ice, bringing a momentary cooling experience. Passers-by are also able to intuitively sense the “danger” of high temperatures and pay greater attention to the global warming issue as a result of the enormous ice cubes slowly melting in the streets.  This unique cooling experience offered in the streets is embedded in the consumers’ mind and the brand is sure to be remembered for a long time because of the tall ice. Partake in special brand collaborations Herbal teas are known for their cooling properties and are thus drunk by Chinese people in order to lower their body temperature. So it only makes sense for famous skincare brand, Kiehl’s, to collaborate with Wong Lo Kat, a popular Chinese herbal tea.  Source: INF Kiehl’s and Wong Lo Kat opened a pop-up store fitted with old Cantonese aesthetics, fitting the Wong Lo Kat brand very well. The pop-up store only sold one product, Kiehl’s Calendula herbal-extract toner. The product is marketed as a “herbal tea for your skin”, meant to cool down the user externally. Even though Wong Lo Kat and Kiehl’s appear to have little in common, they were able to connect because their products both have the properties of “lowering heat and eradicating acne.” This was far more appealing than the abundance of brand collaborations that look and feel forced. From a marketing perspective, the Wong Lo Kat and Kiehl’s co-branded pop-up store was a perfect collab. In conclusion Although September is here, and with it, the autumn season, the cool economy seems to thrive as the heat wave rages on. Consumers are adapting to the heat by purchasing related products and services that can help them cool down and brands are taking a piece of the pie through numerous marketing moves. With the high consumption enthusiasm of Chinese users, the summer presents a trend of diversification and novelty.