The end of foreign brands in China?

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International brands have enjoyed a mostly free run in the Chinese market since China opened its doors to foreign investors in the late 1970s. Starbucks, Apple and McDonald’s are among the major names to have dominated the Chinese market after introducing services and products that did not exist in the country. In recent years, however, the multinationals have struggled with falling profits in China. While a slumping domestic market is one reason for the decline, domestic Chinese brands, often with their own take on Western trends, have also steadily eaten away at market share. So does the change signal the end of an era for Western brands in China?

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00:00 Foreign brands struggling in China?
01:45 How Luckin' beats Starbucks in China?
03:13 Rise of nationalism in Chinese brands?
04:10 How western brands respond to the challenges?
06:10 How this American company outcompetes its local competitors?

[JulioOther]

Kinda similar here in Indonesia. If there aren't any promotions, then most western food brands are simply not worth it for the same money. You can get local food brands with bigger portions.

[ZETA.]

Don't overprice your products.

It's just that simple

[habf]

Sooner or later, you can find these brands overseas, then the US will ban the Chinese burger due to national security 😅😅😅

[JCSY]

Not only in China. It happens in a lot of other countries too. Go local and/or other cheaper and more affordable brands.

[zongshanli-mwue]

In the past, local brands only relied on low prices to compete, but now they taste delicious, which is why they are popular.

[dionysos]

I'm German and never go to Starbucks, even here it's the overpriced coffee shop 😅

[chrislee]

Not only in China. McD, Starbuck and KFC struggling around the world.

[hermesliteratus]

The Chinese are getting sick and tired of being ripped off by ridiculously overpriced Western luxury brands and their ultra-processed fast food garbage.

[hehe-mqbk]

there is an overcapacity of foreign (American) fast food brands in China

[phillipfoo]

All countries have welcomed western brands for decades but has the west, especially America received foreign brands just as well?? Time to empower ourselves first. Make Asia Great Again!

[Slimane-rp]

It all started with Huawei when the US sanctioned Huawei and went around talking to other allied countries (mainly europe) to do the same. The Chinese people saw the injustice but didn't do much about. Luckily for China, Huawei decided to completely restructure their model after being cut from a lot of their sales overseas and decided to focus on R&D and working with other Chinese tech companies to sell their innovations to while being the #1 Chinese phone company. This was a huge success and Huawei is today one of, if not, the most innovative phone company doing record sales year by year. The Chinese people saw a revitalization in national brands and decided, by themselves, to switch to Huawei instead of apple. Today this has led to more and more young Chinese people who, usually didn't care about "Chinese brand solidarity", to find Chinese alternatives. The US and Europe shot themselves in the foot. This could also become a problem for China if too many people switch away from american and european brands since they won't have as much bargaining power with those nations. However if the US and China was to start a trade war and potentially even a cold war, it would be perfect for China to be ahead of it to create a solid foundation in Chinese alternative brands.

[ymhktravel]

I hardly go Starbucks here in Singapore, unless I'm needing a nice ambience and want to have a chat with a friend. Otherwise my local coffee shops, always within walking distance from homes, offer maybe even better taste than Starbucks, Coffee Beans etc and at 4 times lesser the price. Starbucks is overhyped and overpriced. But even the ambience is nothing these days because it's always crowded with people esp in town area. Actually western fast food is not cheap in SG vs local food. People who frequent them are actually either addicted to junk food or have too much $$ on hand to be able do it frequently.

[tvo]

Chinese going to Starbucks is not about quality, it’s about looking cool, holding a Starbucks cup. Same in much of the world

[rvmnet]

There isn't a big difference in India, where U.S. fast food brands are also struggling due to strong competition from Indian fast-food chains. These local brands understand the Indian palate better, catering to regional tastes and spices, which gives them a significant edge over international chains.

[froyo]

As a Chinese, I would like to say that this video is a little biased. Only those expensive foreign brands are declining, those quality with decent prices are still popular. For example, McDonald's, KFC, Domino

[momo_san]

To be honest, luckin coffee tastes better and far more innovative than Starbucks. It requires less floor space, and leverage on the delivery system here in China to keep the cost down. Can already see Chinese brands in South East Asia.

[DemocracyIsBaal]

I can't bring myself into buy Coca Cola when the US government put a 100% tariff on Chinese cars.

[AceChina]

Same thing happens everywhere. When I first visited Korea as a kid American food brands like McDonald's and Pizza Hut were very popular among the locals. Now (with the exception of Starbucks) it's mostly better, cheaper and more delicious Korean brands. Same thing with China.

[shqip_sumejja]

I'm not even in China but I've found myself using more Chinese brands over Western ones that are too expensive. Local too obviously!

[kavecrock]

I think it is great. China has its own brands. US has its brands. No need to mix at all. Each goes its separate way. No crossing paths. No conflicts.