A report from Beijing-based Ebrun research institute said China's newly emerging consumption brands expanded rapidly since 2018. In 2019, the brands' penetration rate reached 72 percent, and the rate grew to 91.4 percent in 2020.

"China's consumption market is evolving into a refined, diversified and personalized stage. Consumers born after 1990 are turning into a major consumption power. Traditional brands may find it increasingly hard to please consumers, while newly emerging consumption brands take advantage of internet-based innovations in commodity, brand, marketing, service and business modes to satisfy consumers' new needs in the new consumption era," Lin said.

For example, Shanghai-based coffee brand Manner is using innovative marketing strategies to attract consumers. On July 8, the company worked with Shanghai-based flower brand The Beast to offer panda-themed coffee products, such as a cup of latte with panda-shaped latte art. Consumers also have chances to get free panda-themed perfume samples, bags and coffee cups.

The co-branding was a huge success. The mini program to order coffee in WeChat experienced system crashes several times on the very first day. Manner also announced it would extend the free gift-delivery period for three days.

"In the internet era, newly emerging consumption brands take advantage of online communities for brand communication, which contributes to the rapid rise of brands. However, they also face pressure for future development," said Lai Yang, a member of the expert committee of the China General Chamber of Commerce.

"When brands gain consumers' recognition, whether they continue to consume the products depends on whether they have good user experiences. Newly emerging consumption brands should make efforts to ensure product quality, constantly innovate, increase cost performance and diversify product varieties to sustain growth," he said.