WESTERN FIRMS HAVE FALLEN BEHIND CHINESE BRANDS
For decades, Western firms had profited from the seemingly unstoppable growth of China’s consumers. But with the economy slowing and the emergence of domestic rivals, some of those companies fell behind.
Crocs has been able to buck that trend after overcoming years of challenges. It entered the country through a distributor in 2006. After some initial success, there was a long fallow period compounded by troubles in the US. But a turnaround began taking shape about five years ago, coinciding with the move to hire actress Yang Mi as ambassador. Its path may offer lessons for other foreign retailers.
Starbucks is a case in point. It preceded Crocs into China by seven years, bringing coffee culture to the masses for the first time. And for most of its quarter-century run, it flourished.
But over the years, smaller and nimbler rivals took that caffeine culture and ran with it. They charged less and innovated more.
Two years ago, one of those upstarts, Luckin, dethroned Starbucks as the top coffee seller. A former China chief has been blamed for sticking too closely with what worked in the West and refusing to tailor offerings for the local market.
Source: CNA
