China's Guochao economy projected to reach 3 trillion yuan by 2028

China's domestic brand market, often referred to as the ‘Guochao’ economy, is experiencing significant growth. Market reports indicate the sector exceeded 2.5 trillion yuan in 2025 and is projected to reach 3 trillion yuan by 2028. To sustain this momentum, official guidance emphasizes strengthening traditional brands, supporting their international expansion, and developing localized cultural products.

In support of these trends, Taofactory and Tmall have announced a 1.6 billion yuan investment for the 2026 Double 11 shopping festival. The initiative aims to bolster high-quality domestic supply from industrial belts through merchant incentives, such as commission rebates of up to 100%.

A key component of this strategy is the introduction of an ‘AI Studio’ within the Taofactory Spark platform. This tool is designed to help merchants transition from experience-based decision-making to data-driven operations by providing predictive analytics on product potential, sales estimates, and inventory priorities.