Oops!... They Did It Again: Are U.S. Brands Losing Their Sparkle in China?

Not a Girl Not Yet a Global Powerhouse (Brand)

Hey y'all it's Brit ney! So I was reading this article – yeah I read now who knew? – about how U.S. brands are kinda... well not doing so hot in China anymore. Apparently the locals are all about that homegrown goodness now. It's like they're saying 'Gimme More' but only if it's made in China! Can you believe it? Only 9% prefer Western brands. That's like less than the number of times I've said 'Oops!' in my life. And honey that's a LOT.

Apple's Still My Lucky Charm

The article says Apple is still doing okay over there. Good for them! Maybe it's because everyone wants to Facetime their besties or jam out to 'Toxic' on Apple Music. But other brands? Mmm not so much. Even though the big bosses are all 'Optimistic! Everything is amazing!' this article says they are facing high risks. I'm just saying maybe they need a little 'Lucky' charm.

Trade Wars and Economic Blues

Apparently the trade war between the U.S. and China isn't helping either. It's like a 'Circus' out there with all the tensions. People are worried about their incomes and who can blame them? 'You want a piece of me?' Well China seems to want a bigger piece of their own brands now. Economic times they are a changing honey! This year’s survey was taken before the trade wars intensified. Uh oh!

Beauty and the (Declining) Beast

Okay so Estée Lauder is still like the most well known beauty brand but even they're losing love! Their preference dropped from 24.3% to 19.6%. That's almost as big of a drop as when I cut my hair that one time! Meanwhile Lancome and Chanel are gaining ground. It's like a beauty battle royale and it's getting 'Crazy'! And sales in Asia are DOWN! The horror!

Nike's Just Not Doing It...Baby One More Time

And don't even get me started on Nike! They're losing preference in like every category! Meanwhile Li Ning and Anta are doing the 'Slave 4 U' dance and raking in the dough. Nike's all like 'China is a growth opportunity!' But like not so much anymore. Maybe they should try bedazzling their sneakers or something. Just a thought. Management at Nike said that China is a growth opportunity but the macro offers an increasingly challenging operating environment. Sounds like a challenge!

Starbucks: A Frappuccino Fiasco?

And last but not least Starbucks! They're trying to charge more than the local coffee shops and people aren't having it. They're losing in value and quality perception. Other brands are stepping up their game and Starbucks is kinda stuck in the 'Oops!... I Did It Again' loop. Apparently people aren't even buying coffee as often. Is this the end of the coffee boom in China? That is ‘so bad’ as my hit song describes. TD Cowen rates Starbucks a buy but has hold ratings on Nike and Estée Lauder. I don't understand ratings but like it sounds serious!