Why McDonald’s, Apple and Other U.S. Brands Are Losing in China | WSJ
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Published 2024-07-09
WSJ’s Jonathan Cheng explores how Chinese brands are squeezing their U.S. rivals out.
Chapters:
0:00 Chinese restaurant Tastien
1:00 China’s importance to U.S. brands
2:54 Chinese nationalism
3:57 Rapid expansion
5:32 What’s next?
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All Comments (21)
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China reopened to foreign students. Americans are staying away: on.wsj.com/3Y2StF8
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If the US companies want to make money, they need to compete. If you can get the same coffee at the price of $2, why bother to spend $4 at Starbucks?
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Some of these companies are not just failing in China. Nike and Starbucks are falling in popularity in the US.
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I was homeless, got into drug's went to prison and then I got to know Jesus and he changed my life...Heaven came through for me in my finances too, getting $50,000 in 2months . I can support God's work and give back to my community. God is absolutely more than enough! Now I have a new identity and a child of God
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What wrong with Chinese using or eating Chinese brands? In this world, who gives rights to American brands to dominate every aspect of our lives?
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It's not so much patriotism but just consumers looking for the most value. Of course local brand is gonna thrive.
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Chinese are embracing local brands America: security threat
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I am proud to say, I went from having McDonalds 5 times a week, sometimes 6, to zero, exactly 20 years ago this month!
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tho in China no one is beating KFC, they're genuinely crazy they'll collab with literally anything 😂
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On the other hand, it’s a consumer’s paradise. For example, being forced to compete with rivals like Xiaomi and Huawei, iPhones are often heavily discounted in China. You can get an iPhone 15 Pro Max for $675 on Taobao — no trade in’s, no nonsense. Ultimately, China’s domestic market is fiercely competitive — once an industry, brand, or concept is proven, new money rushes in and tries to displace first movers with price wars. This makes it difficult for any company to truly last, doubly so for foreign brands.
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I was in China recently and the Luckin Coffee had so many innovative coffee flavours that incorporated fruits flowers and tea and honestly they were all shockingly good even the simple basics that Starbucks always mess up on. Not just Luckin, there were so many small cafes too that were superb. Coffee culture is big in China, people are passionate about it. Don’t dismiss their ability to innovate on food and drinks.
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What’s the problem with the Chinese preferring their own brands to foreign brands? Foreign companies have long dominated the Chinese market. American companies have made heaps profits off China. About time for the Chinese to gain their share on their home turfs.
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Good for the Chinese they are adopting the Japanese, korean model where they have strong loyalty towards their own country brands
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Burger with Chinese Characteristics
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Nike has the right not to use Xinjiang cotton, and the Chinese have the right not to buy it.
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Chinese older people admire American culture, while young people are more confident in Chinese culture.
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Nothing wrong when Americans want to buy American, but as soon as Chinese (or any other enemy) want to buy local then there's a problem?
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I don’t know who goes to Starbucks in China. It is more expensive than in the US. A cup of coffee for above ¥40. There are a lot of much cheaper alternatives, like luckin coffee, boba tea. All are more than 50% cheaper.
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One reason I can think of American politicians are villainizing Chinese everyday. If you are a Chinese , would you buy and support American brands?
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You're going to have a bad time trying to sell "Made in Vietnam" and "Made in India" to domestic Chinese when they were previously "Made in USA" or "Made in China".