Here is the new Luis Vuitton store in Shanghai, China, on June 28, 2025.
Bloomberg Bloomberg Gety pictures
Beijing – China Economic slowdown American and European brands do not encourage the renewal of their strategies to reach Chinese shoppers.
Instead, the attractiveness of the second largest market for consumers in the world forces companies to adapt to the increasing competition from local brands.
in case Kraft HeinzIt means getting more people in China to buy ketchup this year also to employ a local agency to help create attractive-decorating metro station pillars to simulate ketchup bottles and promote spices as a new fate on a famous dish: fried eggs and tomatoes.
It is a difficult market, even for the GGN. The agency has witnessed at least five different waves of consumer trends in its 14 -year -old history, said its founder, Stepie Liu, in Mandarin, by CNBC. “The gameplay continues to change.”
Liu said that GGN had succeeded even after refusing to acquire the British advertising giant WPP, noting that about half of its customers are foreign brands.
While Kraft Heinz has not yet ended with the China Ketchup campaign, the company has reported net sales in the second quarter in emerging markets It increased by 4.2 % A year ago, assistance helps in compensating for declines in North America.
WPP explores a possible acquisition of GGN but has not ended in this process, according to a person familiar with the discussions.
Kraft Heinz did not immediately respond to suspension requests.
Topical social media
from Starbucks conflicts For the success of LululeMon in China, it has become clear that the correct mix of localization is necessary.
“Among the international brands in China, the winners often devote more than 40 % of the marketing revenues, especially the first content and marketing of the platform, with the frequency of products also based on market data,” said Jacob Cook, co -founder and CEO of WPIC Marketing + Technologies, which helps foreign brands in China.
This year, Cook said that Under the shield She created products less than 100 yuan ($ 14) to attract a group of online buyers, using direct broadcasting with dedicated users to build fitness communities and sell more distinct products in non -communication mode.

Dwin has become owned by an electronic trade power in the past few years since celebrities and companies have started using the application Direct sales During the epidemic. With numbers, there are few questions that jump to the Xiaohongshu and Douyin world is worthy of companies.
Liu Liu said that adaptation to this new social commercial ecosystem has become the biggest challenge for brands in the past two years. “Foreign brands will think, isn’t that just tiktok?”
And she warned that success requires a complex strategy that could include changing everything from how the team is organized to the types of products sold. But the return is important.
“In half a year, it can help you sell more than it is sold (Ali BabaLiu said:
Data strength
In addition to social media, one of the decisive factors in the strategies of many companies is to reach the drawers of data for what consumers buy in China.
Chinese e -commerce platforms, including TMAL from alibaba, sharing much more data about what is common Amazon.com Do, Cook WPIC said. In China, “People generally know what their competitors sell and what they sell.”
With this granular data, the ideal Chinese makeup notes managed to succeed by identifying a market pain point and creating a target lipstick in the low price sector, Cook said. He pointed out that the compressed foreign brands to create special products in China as well, which is a major transformation over the past five years.
China’s e -commerce platforms often show approximate numbers about the number of requests that have been submitted for each product, while third -party companies such as Syntun offer large quantities of product categories and other online sales data for free.
in case appleAfter the launch of iPhone 17 on September 19, it was the Chinese e -commerce company JD.com that released sales data for the main righteousness of China. The platform, which focuses on electronics, announced that the first minute of the IPHONE 17 series has exceeded the size of Preormer on the first day of the iPhone 16 series last year.
Apple’s story also emphasizes how it can Reignite local interest Despite the loss of its share in the market for local competition. Some customers in Beijing told CNBC that they loved the new cosmic orange from iPhone, and that more local population intends to buy the first iPhone this year because they heard about attractive new features such as the larger internal storage.
China factories rushed to jump in this direction, as IPHONE cases were released with a similar orange color even before the 17th style ended.
“The winning brands are those that have established local research and development centers and product teams on the ground,” said Ashley Dudinoc, founder of Zozan, a marketing consultant in China. “This allows them to discover early trends, develop products designed for local needs, and launch them in months, and not years. This is a great departure from the past, as global products were simply launched in the Chinese market.”
Cultural connection
Even with the right data and social media platforms, cultural integration has become increasingly important, especially You find Chinese brands success In exploiting the country’s history of craftsmanship.
“The brands are moving beyond the surface gestures of Chinese culture,” said Dudinoc. She noted that LOEWE participated with Jade Corving Master, while Burberry collaborated with bamboo artists.
And in spite of Low sales in the luxurious China marketand LVMH This summer opened a remarkable store in the shape of a ship in Shanghai-which immediately generates a lot of local tune.
In contrast to the LVMH store in the form of luggage in Manhattan, the Shanghai site in the history of the Chinese city is wearing a port for international travelers to Asia almost a century ago.
The new store also takes the roots of the European brand in handmade travel trunks-which contradict the inability of Chinese brands to make the same emotional appeal, and Joe Nagai, Chairman of the Greater China in MCKINSEY, pointed out, pointed out. LinkedIn post.
He said: “As Chinese clients grow their confidence and desire for local elements, the creation of more transitions between the West and the East is one of the unique opportunities for multinationals in China.”
Eunice Yoon from CNBC contributed to this report.
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