Big international brands see sales decline in China as residents consume more local brands , reported ag. Bloomberg.
The publication stated that L’Oréacute;al's sales in North Asia, including China, fell by 6.5% in the third quarter of 2024. The company's CEO Nicolas Hieronymus linked falls in sales in the region with "consumer pessimism". The agency itself writes that the people of China are “increasingly frugal”. and that's why they prefer local brands over western brands.
Specifically, unlike the French company, the Chinese cosmetics company Proya Cosmetics Co. reported a 21 percent jump in sales and profits in three months, Bloomberg reports. The downward trend in sales of Western brands is seen not only in the field of beauty products. Thus, the conglomerate LVMH (Louis Vuitton Moet Hennessy) reported the worst sales data in China since the pandemic. Chinese coffee chains Luckin Coffee and Cotti Coffee are ahead of Starbucks, which continues to lose market share in China.
Clothes retailers Nike and Uniqlo also saw product sales fall as Chinese consumers favor cheaper local alternatives. According to Chinese expert Hernan Tsuei, Chinese consumers have “become more price sensitive”. and therefore “are looking for more profitable products in the conditions of weak economic growth”. “Local brands win”, he concluded.