Brand Marketing in 2025: The Tipping Point of Some Slowly Evolving Situations

We explore the slowly evolving situations to find the direction and answers for brand marketing in 2025.

Welcome to 2025!

Recently, we see many marketing fellows sharing their annual reviews of 2024, including business keywords, marketing keywords, and annual memes. These help us look back at what happened in the “past” and understand what is happening right now.

However, I believe that the reason we take the time to review the past and focus on the present is to better face the future. Recently, many business partners have been asking us privately:

What trends can be captured in 2025?

In fact, we believe that “short-term predictions” are almost impossible, while extrapolations based on Slowly Evolving Situations make it easier to find directions and answers specific to a brand.

Two Stories about Brand Marketing

To begin, I’d like to share two stories about the cola brand Pepsi.

Story One: Pepsi Cola’s New Generation Brand Campaign in 1980s

In the 1970s, the hippie movement swept across America, with “rebellious spirit” becoming a core value.

In the subsequent 1980s, the sense of superiority brought by American economic development led people to return to “self-awareness.”

It was during this transition period that Pepsi launched its “New Generation” creative campaign in the mid-1980s, positioning the traditional, collectively culturally recognized, and somewhat “old-fashioned” Coca-Cola as its opposite – one nostalgic classic, one bold trend.

Pepsi Cola thus won the recognition of young consumers.

Story Two: The Switchover of the Soft Drink Brand for Warren Buffett

The second story is about Warren Buffett, which partly explains why he later invested in Apple, a company he initially “couldn’t understand.”

In his childhood, Buffett drank Pepsi Cola because at that time, the price of Pepsi Cola was about half that of Coca-Cola. Although he liked Coca-Cola so much, he would still choose Pepsi Cola in the past because it was cheaper; contrarily but interestingly, iPhone users love their devices intensely despite iPhones being much more expensive than Android phones.

This seemingly simple principle reveals part of the truth about value marketing for a brand, that Buffett came to understand Apple’s brand value through this pricing and consumer loyalty perspective, which ultimately influenced his investment decision.

The first story relates to the key phrase slowly evolving situations that we are talking about, whereas the second story shows that just as GDP is one of the most effective indicators of social welfare levels, price premium is the most direct manifestation of a brand’s comprehensive competitiveness.

These two stories also connect to our topic today – 2025 in Brand Marketing: The Tipping Point of the Slowly Evolving Changes.

We have always believed that the current situation and the effectiveness of strategies come from accumulations three years ago; similarly, this year’s decisions and resource investment directions will shape expectations three years later.

Doing the right things, and then doing things right, respecting business rules, and understanding that brand asset formation takes time and patience – these views always hold their value. On the other hand, after brand decision-makers have experienced complete cycles of “seller’s market,” “buyer’s market,” and “de-stocking,” they no longer obsess over a single theory but view competition more comprehensively.

Slowly Evolving Situations and Brand Marketing in 2025

We have compiled some slowly evolving situations that may be at their tipping point in 2025, and also discussed their impact to marketing.

1. The Awakening of Individual Consciousness

The collective consciousness that once dominated society is giving way to a increasing sense of individuality.

This shift is profoundly impacting various aspects of life, from personal relationships to consumer behavior.

People are increasingly expressing themselves through their consumption choices, moving away from grand narratives towards more personal, emotionally-driven decisions. For instance, major purchases like homes and cars, which were once heavily influenced by family or societal pressures, are now more reflective of individual preferences and values.

2. Polarized Consumption Pattern

This trend refers to a polarization in consumption patterns, creating a dumbbell-shaped market structure. On one end, we see affluent consumers who are less affected by economic pressures, while on the other, we find price-sensitive consumers who still maintain strong consumption desires.

This polarization is evident in various sectors, including the diaper market, where high-end, eco-friendly products coexist with budget options, catering to different economic segments of families with multiple kids.

3. Purpose of Consumption

Modern consumers are shifting from seeking instant gratification to pursuing a sense of fulfillment through their purchases.

This trend is characterized by five key elements: slow, small, soft, social, and sustainable.

Consumers are valuing experiences that allow them to slow down, appreciate smaller-scale offerings, engage with soft elements like culture and service, connect socially, and support sustainable practices.

This shift is evident in the rise of small-town tourism, the growth of convenience stores over large supermarkets, and the success of brands that emphasize sustainability, like Patagonia.

4. Conservative and Rational Consumption

There’s a noticeable downgrade in people’s willingness for purchase made to save face. High savings rates indicate a more conservative consumption trend.

This downgrade is squeezing the space of any unreasonable price premiums and driving a return to rational consumption. Consumers, having experienced economic cycles, are becoming more aware that wealth accumulation isn’t always a linear upward trajectory, leading to more thoughtful spending habits.

5. Upgrade of Intimate/Close-to-me Consumption

While luxury items like smartphones are seeing a slowdown in growth, there’s an interesting trend in the upgrade of intimate or close-to-body consumption. For example, traditional thermal underwear brands are experiencing rapid growth in their premium lines. This suggests that consumers are more willing to invest in products that directly impact their personal comfort and well-being.

6. Loosening of Austerity Consensus

After a period of economic contraction, there are signs of a loosening in the macro-level “austerity consensus.”

While the focus remains on supply-side improvements, there’s a visible trend towards stimulating incremental consumption. This is evident in the strong promotional efforts across various sectors, particularly in digital product sales.

7. Post-70s Wealthy Group

As the market for young and middle-aged consumers shows signs of saturation, the potential of the silver-haired group is emerging.

Particularly, those born in the 1970s, who experienced rapid wage growth and high welfare levels, are becoming a lucrative consumer segment. Travel companies like Ctrip are already tapping into this market with specialized products for the 50+ age group.

8. Bigger Role of AI

The rapid advancement of AI, from narrow AI to artificial general intelligence (AGI), is having far-reaching effects. With decreasing computational costs, AI is enhancing efficiency across supply chains and improving communication with target consumer groups. As AI begins to engage in more significant tasks like creation, prediction, and decision-making, it’s crucial for brands to consider how to leverage AI while also defining their social role in meeting consumers’ practical and emotional needs.

These slowly evolving situations are collectively shaping a new landscape where quick profits are becoming less likely, and brands are adapting to a slow cashflow era, focusing on long-term growth strategies that often go against short-term temptations.

Brand Choices in the Era of Slow Cashflow

The marketing landscape of 2025 demands fundamental shifts in brand strategy as we enter the slow cashflow era.

With diminishing returns from short-term tactics and platforms leveling the playing field in traffic acquisition, brands must refocus on three core pillars: product differentiation, subjective brand value, and innovative business architectures.

Successful products now follow two paths – either creating new market categories like DJI‘s drone dominance, or achieving sustained excellence through relentless iteration.

Meanwhile, brands like Coca-Cola demonstrate how transcending functional utility to embody emotional symbols (happiness, nostalgia) creates lasting consumer bonds.

The third pillar manifests in distribution innovations, which are structural advantages that outlive temporary market fluctuations. Meanwhile, founder leadership reemerges as critical, exemplified by Airbnb’s resurgence when Brian Chesky resumed hands-on management. This “founder mentality” balances visionary oversight with operational pragmatism.

The crucial transition from transactional traffic brands to meaning-driven mindshare brands. Where traffic brands battle in bidding wars, mindshare brands achieve cultural traction by aligning with social narratives. And effective mindshare building in a brand requires:

1. Embedding brands in cultural conversations through social issue alignment
2. Developing self-sustaining content ecosystems combining IP, influencers, and brand networks
3. Balancing sales-driven marketing with brand-building investments that drive organic search and premium pricing power

Underpinning this evolution is a renewed focus on human psychology. Successful campaigns leverage fundamental drives – whether amplifying hope during economic uncertainty or designing shareable moments that fulfill identity expression needs.

Sustainable growth stems not from chasing algorithmic trends but from marrying business logic with creative imagination – the true differentiator in an era where consumers demand both value and values.

Conclusion

First of all, for any brand that wishes to scale up, it is really valuable to understand more about the needs and conditions of the broadest consumer groups.

Secondly, whether the brands have built a brand awareness in the consumer’s mind is key. The channel system of brand penetration is the foundation for scaling up; the content ecosystem is the soil for cultivating core cognition. Especially, in the current prevalence of emotional value, content that can comfort the mind and emotions and represent a sense of belonging is a necessity.

Thirdly, things that work only to provide short-term satisfaction can often go wrong. Every brand decision-maker needs to move from providing short-term satisfaction to building long term customer loyalty.