Big international brands are seeing a decline in sales in China as the country's residents shift to local brands. This is reported by Bloomberg.
The release notes that L'Oréal's sales in North Asia, including China, fell 6.5% in the third quarter of 2024. The company's CEO attributes the drop in sales in the region to "consumer pessimism."
In particular, unlike the French company, Chinese cosmetics Proya Cosmetics Co. reported a 21 percent increase in sales and profits in three months. It's not just in the beauty industry that Western brands are seeing a downward trend in sales. Thus, the LVMH conglomerate (Louis Vuitton Moet Hennessy) reported the worst sales figures in China since the pandemic.
Chinese coffee shops Luckin Coffee and Cotti Coffee beat Starbucks, which continues to lose market share in China.
Also, apparel retailers Nike and Uniqlo have seen sales decline as Chinese consumers prefer cheaper local alternatives.
According to China expert Hernan Zuei, Chinese consumers have "become more price sensitive" and are therefore "looking for more suitable value products in an environment of weak economic growth".
"Local brands are winning," concluded the expert.
