Global brands are facing new challenges in China as consumer expectations evolve rapidly. The days of simply showing up and expecting success are long gone, according to Shanghai-based analyst Benjamin Cavender. Companies like Coca-Cola are adapting by launching new drink brands to cater to changing consumption patterns in China. The Atlanta-based company now has over 275 drink varieties in the country, a shift from its previous strategy of relying solely on the strength of its brand.
Starbucks, with 3,000 stores in China, experienced a sudden slowdown in growth due to increased competition from local upstart Luckin Coffee. The coffee chain is now partnering with Alibaba to offer delivery services in response to changing consumer habits. Similarly, global automakers are facing challenges in China’s auto market, particularly with the rise of electric vehicles and the demand for longer battery life.
Apple, on the other hand, has lost market share in China to local rivals like Huawei and Xiaomi. The US company’s latest models, the XS and XS Max, include features aimed at appealing to Chinese consumers, but analysts remain skeptical about their impact. Despite these challenges, companies like Coca-Cola and Starbucks are adapting their strategies to stay competitive in the ever-changing Chinese market.