Key Takeaway
The international expansion of Chinese companies increasingly means more than selling goods manufactured in China. The next stage is to sell proprietary brands, design, customer experience and higher-value intellectual property globally. ICICLE’s European expansion, Kering’s minority investment in its parent group and the appointment of a former Gucci designer as creative director offer a clear example of that transition. For Georgia, the trend matters because China is already one of the country’s largest trading partners. Competition from Chinese companies may increasingly shift from price alone toward brand, quality and consumer trust.
“Made in China” is no longer the end strategy
For much of the past two decades, China’s role in the world economy was defined by manufacturing scale, supply chains and price competitiveness. That model gave Chinese companies production know-how, industrial capacity and experience with global distribution. Yet a large share of the highest-margin value often remained in branding, design, customer relationships and intellectual property. The new ambition of many Chinese companies is therefore not simply to export more goods, but to persuade global consumers to want the Chinese brand itself.
The Financial Times on 18 September 2026 highlighted this shift through ICICLE, a premium Chinese fashion brand founded in Shanghai in 1997. ICICLE positions itself around natural materials, minimalist design and an aesthetic rooted in Eastern philosophy. Its overseas push is notable because it comes during a difficult period for the global luxury market, when consumers have become more selective.
ICICLE’s strategy challenges the assumption that an international Chinese brand must first compete on low prices. The company already operates in Europe, including Paris, and plans further expansion into London, Milan and the United States. According to the Financial Times, ICICLE’s European sales grew 36% in 2024, although overseas revenue still represents a relatively small part of the business. The real test is whether a company can convert domestic scale into international brand equity.
European capital, Chinese identity
In April 2026, Kering – the luxury group behind Gucci, Saint Laurent, Bottega Veneta and other houses – acquired a minority stake in ICICLE’s parent group, ICCF. Kering said the partnership was designed to combine ICCF’s knowledge of the Chinese luxury ecosystem and cultural landscape with Kering’s expertise in craftsmanship, operations and brand development in Europe. That is a meaningful signal: a European luxury group is not treating the Chinese company merely as a manufacturing partner; its investment is aimed at the development of the Chinese brand itself.
In September, ICICLE appointed Sabato De Sarno, previously creative director at Gucci, as its new creative director. His first collection is scheduled for Autumn/Winter 2027-2028. The move suggests that internationalisation is not simply about imitating a European identity. It is about combining global creative expertise with a Chinese cultural and industrial base.
ICICLE says it operates more than 200 stores. Domestic scale provides financial and operational capacity, but it does not guarantee equivalent results abroad. In premium markets, a store network is not enough. A brand needs a distinctive story, product credibility, service standards and trust. The globalisation of Chinese brands is therefore as much a cultural and marketing challenge as a trade challenge.
The pattern extends beyond fashion
The same ambition is visible in other industries. The International Energy Agency’s Global EV Outlook 2026 reported that Chinese brands accounted for an increasing share of electric cars imported from China into the European Union: their share rose from 50% in 2023 to more than 70% in 2025. The automotive market is very different from luxury fashion, but the economic logic is similar. Manufacturing in China is increasingly being converted into the international sale of Chinese-owned brands.
Three elements determine whether that transition works. First is product quality and technological competitiveness. Second is brand identity and consumer trust. Third is adaptation to the local market: design, service, distribution, warranty, regulation and communication. When all three come together, a company can move away from pure price competition and into higher-margin segments.
The risks are substantial. Foreign consumers may still associate Chinese products with low-cost manufacturing; some sectors face trade restrictions; and incumbent brands have powerful distribution networks and decades of reputation. A successful global brand cannot be built by exporting products alone. It requires sustained investment in awareness and trust.
Georgia is already deeply connected to Chinese goods
For Georgia, this is not a theoretical question. According to Georgia’s National Statistics Office, imports from China were about $1.98 billion in 2025, making China the country’s third-largest source of imports with a 10.7% share. The comparable value in 2024 was about $1.60 billion. According to calculations by BTU researchers, the value of imports from China therefore increased by approximately 23.8% year on year. This does not mean awareness of Chinese brands grew at the same rate, but it does show how large the commercial channel already is through which Chinese companies can reach Georgian consumers.
Georgia’s total imports reached $12.49 billion in January-August 2026. Against that background, China’s role in the trading network is already large enough for local businesses to stop viewing Chinese companies only as sources of low-cost goods. Phones, cars, electronics, clothing and other consumer products may increasingly arrive not as anonymous manufacturing output, but under Chinese names with global ambitions.
What this changes for Georgian business
The first change affects distributors and retailers. When a Chinese company is building an international brand, it is likely to impose stricter requirements on store format, pricing, service, visual communication and after-sales support. The local distributor’s role expands from importer to brand operator.
The second change affects domestic producers. A Chinese company competing on low price was already a difficult rival. A company that combines price with quality, design and brand recognition is harder still. This matters in a small market where the customer base is limited and a strong international brand can capture demand quickly.
The third change is a lesson for Georgian exporters. Georgia has quality products in wine, food, apparel, design and technology services, but production is only the first step toward international success. The new strategy of Chinese companies illustrates where a larger share of value is captured: when a product becomes a recognised name, a distinctive experience and a trusted brand.
Georgia can also serve as a small test market
Georgia’s small size is a constraint, but in some cases it can also be useful. Regional trade links, tourism, multi-brand retail networks and relatively quick market feedback can give companies an opportunity to test positioning at modest scale. The opportunity should not be overstated: household purchasing power, market size and the depth of the premium segment are very different from Western Europe.
According to an assessment by BTU researchers, the most important shift in Georgia may eventually appear not in the volume of Chinese imports, but in how those imports are perceived. If consumers increasingly choose Chinese products for design, technology and brand name rather than price alone, the basis of competition will change. For Georgian companies, the response would need to be stronger differentiation rather than simply lower prices.
The risk: expansion without trust
The global ambition of Chinese brands does not guarantee success. The luxury sector remains difficult in 2026. Kering’s first-half revenue increased only 1% on a comparable basis, while Gucci revenue fell 5% on the same basis. ICICLE is therefore expanding into a demanding market in which consumer attention is expensive, competition is intense and capital alone cannot create international reputation.
This is also the main limitation of the broader argument. ICICLE’s progress does not prove that Chinese luxury brands will win broadly in Europe. Electric vehicles are a different product category. Yet both cases point in the same direction: Chinese companies increasingly want to move up the global value chain and control the most valuable consumer-facing layer themselves – the brand.
Conclusion
The global ambition of Chinese brands is no longer only a future scenario. ICICLE’s European expansion, Kering’s investment and the recruitment of international creative talent show how some Chinese companies are trying to convert manufacturing strength into brand strength. The same direction is visible in other sectors. For Georgia, this is a significant signal: trade with China may increasingly become not only a question of low-cost imports, but of competition from strong international Chinese brands. The most effective response for Georgian business is not to replicate Chinese scale, but to create value that is difficult to copy – quality, design, story, customer trust and a clear Georgian identity.
Data and Main Sources
- Financial Times – Can China’s Icicle woo global shoppers in a luxury downturn?
https://www.ft.com/content/e3b7bd04-175a-484d-be85-cbee70a71ecb - Kering – Strategic partnership with ICCF around ICICLE and minority stake acquisition
https://www.kering.com/en/news/kering-forms-a-strategic-partnership-with-iccf-around-flagship-brand-icicle-and-acquires-a-minority-stake/ - ICICLE – Appointment of Sabato De Sarno as Creative Director
https://www.icicle.com.cn/icicle-appoints-sabato-de-sarno-as-creative-director-en/ - ICICLE – Corporate News / ICCF Group
https://eu.icicle.com/en-eu/pages/corporate-news - International Energy Agency – Global EV Outlook 2026: Manufacturing and trade
https://www.iea.org/reports/global-ev-outlook-2026/manufacturing-and-trade - National Statistics Office of Georgia – External Merchandise Trade of Georgia, 2025
https://www.geostat.ge/media/76335/External-Merchandise-Trade-of-Georgia—2025.pdf - National Statistics Office of Georgia – External Merchandise Trade, January-August 2026
https://www.geostat.ge/en/single-news/3849/external-merchandise-trade-of-georgia-january-august-2026-express - Kering – 2026 First Half Results
https://www.kering.cn/en/news/2026-first-half-results-back-to-growth-performance-improvement-strategy-execution-on-track/
Prepared by the academic team of Business and Technology University and the BTUAI Research Team, Tbilisi, Georgia.