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:
- What does “squeeze out” mean in this sentence? “Tastien” is just one example of a Chinese brand squeezing out U.S. rivals. Use it in a sentence,
- What does “gravitating towards” mean in this sentence? Younger Chinese consumers are increasingly gravitating towards brands that incorporate elements of traditional Chinese culture and style.
- What does the word “surge” mean? Ex. Sales for Starbucks have dropped 8% during the first quarter of this year while Luckin’s have surged 41%.
DISCUSSION QUESTIONS:
- Why do you think some American brands struggle to connect with Chinese consumers, despite their global popularity?
- Do you believe American companies should prioritize adapting their products to local tastes, even if it means changing their identity?
- What strategies can American brands adopt to compete effectively with Chinese companies in their home market?
- How does the rise of national pride and preference for local brands influence consumer behavior in China?