Loyalty in China: Trends and Top 10 Loyalty Programs

China’s retail market is undergoing a digital revolution, and customer loyalty is now at the forefront of brand strategies.

With the world’s largest e-commerce market, valued at $2 trillion in 2024, and over 17 million events tracked by loyalty programs in the region, the opportunity for businesses to foster long-term customer relationships is vast.

In this blog, we will explore how brand loyalty works in China, the key trends shaping loyalty programs, and highlight some of the best loyalty programs in the country. Whether you're looking to expand your brand's presence in China or optimise your current loyalty efforts, understanding these dynamics is key to unlocking growth.

Understanding brand loyalty in China

Brand loyalty in China is deeply influenced by local consumer behaviour, culture, and the country's rapid technological advancements. Unlike in many Western markets, Chinese consumers value personalisation and convenience above all.

They are also more likely to engage with brands on social media and expect seamless digital experiences. As a result, loyalty programs in China have adapted to meet these demands by integrating cutting-edge technologies like artificial intelligence, mobile apps, and social commerce into their strategies.

Chinese consumers also demonstrate a strong preference for experiential rewards and exclusive offers, making tiered loyalty systems and personalized incentives crucial in building long-term relationships.

Trust in a brand is often built through social engagement and proof, whether from influencers, peers, or online reviews, which is why loyalty programs that incorporate user-generated content and social sharing are incredibly effective.

Key trends shaping loyalty programs in China

Did you know that around 88% of mainland China consumers find it very important for them to be a part of luxury brands' loyalty programs?

It’s clear that brands must adapt to shifting consumer expectations: from AI-powered recommendations to gamified engagement strategies, brands are leveraging innovative approaches to enhance customer loyalty. 

Here are the key trends shaping loyalty programs in China today.

1. Tiered loyalty programs

Tiered loyalty programs are a powerful tool for driving long-term customer engagement in China. By offering structured membership levels, brands can tap into the strong desire for exclusivity and status among Chinese consumers. 

As customers progress through different tiers, they unlock increasingly valuable benefits, such as VIP experiences, priority access to sales, and personalized rewards. 

This model incentivizes repeat purchases and fosters a deeper emotional connection between brands and their most loyal customers.

2. Integration with social media and e-Commerce

In China, social media platforms like WeChat and e-commerce giants like Alibaba and Pinduoduo are at the core of consumer behaviour. Loyalty programs are increasingly designed to operate seamlessly within these platforms. 

For example, Pinduoduo’s loyalty program allows members to share deals with friends on WeChat, while Alibaba’s 88 VIP Membership gives access to exclusive benefits across its massive ecosystem of services. 

This integration boosts engagement and enhances customer experience by offering rewards through channels consumers are already familiar with.

3. Personalisation through data-driven insights

Data-driven loyalty programs are gaining traction, as Chinese consumers expect highly personalised experiences. By using customer data to understand buying behaviour and preferences, brands can tailor their loyalty offerings to each individual. 

This can range from personalised discounts and offers to AI-powered product recommendations, driving more meaningful interactions and higher levels of engagement.

4. Coalition and cross-brand loyalty programs

Chinese loyalty programs are increasingly adopting coalition models, where customers can earn and redeem rewards across multiple brands and industries. 

Joy City’s loyalty program, for example, allows customers to earn points at various affiliated brands and redeem them for services like medical checkups or parking. Such programs incentivise cross-brand shopping, providing consumers with more value and flexibility.

5. Mobile-first and digital loyalty solutions

With mobile usage in China surpassing that of any other country, it's no surprise that loyalty programs are focusing on mobile-first strategies. 

Most loyalty programs are now designed with a mobile app or mini-program on platforms like WeChat, offering customers a convenient way to track rewards, receive notifications, and engage with the brand. 

This mobile-centric approach is crucial in keeping customers engaged and ensuring the loyalty program is always accessible.

6. Social shopping and group buying

Social shopping is a growing trend in China, with platforms like Pinduoduo capitalising on the power of social networks to drive sales. 

Loyalty programs in China are increasingly incorporating group buying and social features to encourage friends and family to join in on deals together. 

This helps create a sense of community and collective value, making the loyalty experience feel more social and rewarding.

The Top 10 Loyalty Programs in China

The most successful loyalty programs in China aren’t just about discounts - they blend exclusivity, gamification, and seamless digital experiences to keep customers engaged. From AI-driven personalization to WeChat-powered ecosystems, here are 10 standout loyalty programs that have mastered the art of customer retention in China.

1. CTF Club (Chow Tai Fook)

CTF Club is the loyalty program of Chow Tai Fook, one of China’s largest jewelry brands. The program offers a four-tier membership system, providing exclusive benefits such as VIP treatment, members-only events, jewelry cleaning services, and permanent discounts.

Why it works:

• The program features a four-tiered structure, with Diamond membership as the highest level, making customers feel valued.
• Membership status lasts for two years, encouraging long-term engagement.
• Customers receive a personalised membership card upon upgrading.
• A Birthday Gift Gallery allows members to choose their preferred birthday reward, adding a personalized touch.

2. Pinduoduo Card Program

Pinduoduo, a fast-growing e-commerce platform, has a unique social shopping-based loyalty program. The program encourages users to form shopping groups and unlock deals, while AI-driven recommendations personalise the shopping experience.

Why it works:

• Social commerce integration: Pinduoduo’s program encourages group shopping and peer recommendations, which drive higher engagement.
• Tiered membership structure: Users can unlock Free Pass Cards, Black Brand Cards, and Brand Cards, which offer increasing benefits.
• WeChat integration: Upper-tier members can share their brand cards with friends via WeChat, incentivizing more purchases.
• Gamification elements like daily check-ins and review incentives boost retention.

3. Joy City: Joy Pay App & WeChat Mini Program

Joy City, a major department store chain with over 3 million members, has a loyalty program that integrates with multiple brands and online-to-offline (O2O) platforms like DiDi Chuxing and Alibaba Koubei.

Why it works:

• Members earn points across all brands under the Joy City umbrella, making it highly flexible.
• Points can be redeemed for various services, including parking fees and healthcare perks.
• Integrates with O2O platforms, allowing members to gain benefits beyond traditional retail shopping.
• Real-time tracking of point balances keeps customers engaged.

4. Coach: WeChat Loyalty Program

Luxury fashion brand Coach has tailored its loyalty program to China’s digital landscape by using WeChat as the central hub for customer engagement. The program offers personalised experiences and seamless e-commerce integration.

Why it works:

• WeChat-based management: Members can manage membership cards, unlock exclusive offers, and get VIP services.
• Thematic campaigns like Mother’s Day photo contests drive engagement.
• Mini-program integration: WeChat’s mini-program acts as a store and customer service hub.
• Personalised recommendations help Coach enhance customer retention.

5. McDonald’s & Ele.me Loyalty Program

McDonald’s China has expanded its loyalty ecosystem by integrating with Ele.me, Alibaba’s on-demand delivery platform, making it easy for customers to earn points across multiple channels.

Why it works:

• Seamless online and offline experience: Customers earn points both in-store and via the app.
• One-click activation: Joining the loyalty program via Ele.me is effortless, removing barriers to entry.
• Enhanced customer convenience: Integration with Ele.me improves McDonald’s delivery experience and increases customer retention.

6. Alibaba 88VIP

Alibaba’s 88VIP is an exclusive, paid membership program offering significant discounts across Alibaba’s vast ecosystem, including Taobao, Tmall, Ele.me, Youku (video streaming), and more.

Why it works:

• Cross-platform benefits: 88VIP members receive discounts across multiple Alibaba-owned services.
• Premium-tier membership model: Customers must meet a spending threshold or pay an annual fee, creating exclusivity.
• Integrated digital experience: The program connects shopping, entertainment, and food delivery in one ecosystem.

7. JD Plus

JD.com, China’s second-largest e-commerce platform, runs JD Plus, a subscription-based loyalty program offering discounts, VIP customer service, and exclusive content.

Why it works:

• Subscription model: Customers pay an annual fee, creating a sense of commitment.
• Loyalty across services: JD Plus members receive exclusive discounts on both e-commerce and JD’s other services, such as travel and entertainment.
• Strong brand partnerships: The program collaborates with brands to provide additional perks, such as special discounts and early product access.

8. Luckin Coffee Loyalty Program

Luckin Coffee, a challenger to Starbucks in China, offers an app-based loyalty program that heavily incentivizes repeat purchases and referrals.

Why it works:

• Gamification & referral system: Customers earn free drinks through purchases and referrals.
• Digital-first approach: The program is entirely app-based, catering to China’s mobile-savvy consumers.
• Frequent promotions: Luckin regularly offers discounts and flash deals to keep members engaged.

9. Starbucks China Rewards

Starbucks Rewards in China operates differently from its global counterpart, focusing more on mobile payments and WeChat integration to align with local consumer behaviour.

Why it works:

• Mobile-first strategy: Members use the Starbucks app or WeChat Mini Program for rewards and payments.
• WeChat & Alipay integration: Customers can seamlessly pay and earn rewards using China’s top digital payment platforms.
• Personalized offers: Starbucks uses data insights to tailor promotions to individual preferences.

10. Xiaomi Mi VIP Club

Xiaomi, a leading Chinese tech company, offers a loyalty program focused on rewarding brand enthusiasts with early access to products, exclusive events, and discounts.

Why it works:

• Community-driven approach: Xiaomi engages customers through events and forums.
• Early product access: Members get access to new gadgets before the general public.
• Points-based system: Purchases and engagement activities earn rewards, encouraging brand loyalty.

Best practices for success:

1. Understand local platforms: Master WeChat and other local platforms like XiaoHongShu, and understand the social and transactional behaviors of users on these platforms.
2. Offer experiential and personalised rewards: Chinese consumers expect high-quality, personalized rewards. Offering something tangible, like product samples or exclusive content, can foster loyalty from the very beginning.
3. Embrace gamification: Frequent, small rewards can engage customers at various stages of their journey. Incorporating gamification ideas such as progress tracking, challenges, or group incentives can enhance engagement.
4. Ensure seamless integration across touchpoints: Make sure that your loyalty program integrates with all customer touchpoints, whether online, in-store, or through mobile apps, and that data syncs across all channels to provide a seamless experience.