According to Chinese media outlet Cankao Xiaoxi, US website Jing Daily, which analyzes China's trends and luxury goods market, recently published an article stating that the reason global brands are entering China first is due to the "Shoufa Jingji (Debut Economy)."

The Debut Economy is a Chinese economic strategy that stimulates consumption by launching new products, new technologies, and new services ahead of the world, or by attracting the first stores of overseas brands.

The article first mentioned that in 2025, China's Ministry of Finance and Ministry of Commerce launched the "Debut Economy" strategy, which will bring fundamental changes for global brands operating in China. It reported, "According to the announcement, a two-year pilot program will be conducted in approximately 50 cities, allocating hundreds of millions of yuan to each city to support new consumption models, cross-industry intellectual property collaborations, and brands' initial entry into the market."

It then reported, "This is different from a stimulus package; rather, it is a structural change. The Chinese government is actively building policies and financial infrastructure to support brands that launch products, concepts, and experiences in China first."

According to the article, for executives of global companies, treating the Chinese market as a secondary deployment destination means foregoing government subsidies, incentives for high-end retailers, and a vast amount of consumer attention.

The most prominent manifestation of the Debut Economy is the fierce competition among Chinese cities to attract first stores. Shanghai is leading this competition, with 128 first stores opening in January-February 2026 alone. The Shanghai Municipal Commission of Commerce announced that to maintain this momentum, it will provide support of up to 1 million yuan (approximately 2.3 million yen) to commercial facilities and districts that successfully attract first stores and flagship stores.

The definition of a first store has already changed; it is no longer about opening a standard store in a new location, but rather about debuting a new experiential business model.

As an example, the article cited the British luxury skincare brand Elemis, stating that instead of simply adding more counters, it opened its first global "Emotional Healing Concept Store" at Grand Gateway 66 in Shanghai, featuring a garden-like environment specially designed to reduce stress.

According to the article, REVANNA, a niche fragrance brand from Saudi Arabia, also chose Julu Road in Shanghai as its first physical experience space in China, leaning into the "Olfactory Economy" where consumers pay for emotional value and sensory immersion.

While physical stores are gaining attention, artificial intelligence (AI) is fundamentally transforming the digital infrastructure of the Debut Economy. Launching a product in China in 2026 means ensuring that the product is discovered by AI agents.

The underlying logic of the Debut Economy is that China is no longer just a giant consumer market but the ultimate litmus test for global competitiveness.

For decades, the strategy of multinational corporations was "China for China products," localizing global products for the domestic market. However, now, the smartest companies are shifting to "China for global products." They believe that by deploying cutting-edge products and concepts in China first, they can survive in the highly competitive Chinese market and develop capabilities that will be effective in the global market.

This change is also evident in corporate talent placement. Last year, a German multinational company relocated its R&D engineers from its European headquarters to Shanghai. The reason is simple: falling behind the pace of innovation in China means falling behind globally.

Operating in China first means competing your brand at the highest possible intensity. Supply chains will be exposed to the fastest logistics networks, marketing to the most advanced social commerce algorithms, and products to the most demanding consumers, each facing intense competition.

The Debut Economy offers a structural advantage for brands that act quickly and bring products to market early. Customer acquisition costs can be reduced through municipal promotions, rental incentives in commercial districts, and the positive impact of being recognized as an innovative company by Chinese consumers.

Conversely, the cost of treating China as a secondary market has never been higher. If you try to launch new concepts or products in China after testing them in the West, prime locations will already be taken, AI agents will recommend competitors, and local government subsidies will be given to other companies.

The article concluded, "In 2026, Chinese consumers will still be buying products. But what they will buy are new things, experiential things, and things that are launched first in China." (Translation and editing by Yanagawa)