America’s Biggest Brands Are Failing to Keep Up in China

B2 – Upper Intermediate

Despite their global reputation, many of America’s biggest brands are struggling to maintain a competitive edge in China. Shifting consumer preferences, the rise of local competitors, and increasing regulatory challenges are making it harder for these brands to thrive. Chinese consumers are favoring domestic products that better align with their tastes, values, and budgets. This evolving market landscape highlights the challenges of adapting to a rapidly changing and highly competitive environment.

Watch the video and be able to answer the questions below.

Vocabulary Questions:

  1. What does “squeeze out” mean in this sentence, “Tastien” is just one example of a Chinese brand squeezing out U.S. rivals.“? Use the phrase in a sentence.
  2. What does “inroad” mean? “Younger Chinese consumers are increasingly gravitating towards brands that incorporate elements of traditional Chinese culture and style and it has allowed brands like Anta to make inroads in a market that long has been dominated by Nike and other Western brands.” Use the word in a sentence.
  3. What does the phrase “an untapped gold mine” mean? “The country’s more than 1 billion shoppers were once seen as an untapped gold mine for Western brands.” Use the phrase in a sentence.

Discussion Questions:

  1. Why do you think some American brands struggle to connect with Chinese consumers, despite their global popularity?
  2. Do you believe American companies should prioritize adapting their products to local tastes, even if it means changing their identity?
  3. What strategies can American brands adopt to compete effectively with Chinese companies in their home market?
  4. How does the rise of national pride and preference for local brands influence consumer behavior in China?
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