China’s Consumer Brands in 2019
Article

China’s Consumer Brands in 2019

How Are They Faring Amid Uncertainty?

Gao Ge
36Kr, 2019
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Editorial Rating

7

Qualities

  • Analytical
  • Applicable
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Recommendation

China’s consumer brands are in for a year of volatility in 2019. The country’s economy is on a downward slope, so consumers are likely to hold off on purchases. As a result, almost every brand will find itself under siege. Gao Ge, an analyst for business platform 36Kr offers advice on how to deal with a tougher environment, such as focusing on young consumers and new retailing. As a silver lining for domestic brands, she highlights the nation’s continued demand for homegrown brands. The article could be better structured, but Gao’s expertise will be helpful for anyone who wants to safeguard his or her business or investment in the Chinese consumer brand market.

Summary

As China’s economic growth slows and competition gets fiercer, the year 2019 looks grim for the country’s consumer brands. Demand for basic consumer products isn’t showing much potential for growth, and consumers will likely be more hesitant to buy higher-tier consumer products. However, the new business environment poses both risks and opportunities for all players – big or small – who want to stay ahead. The challenge will push Chinese consumer brands to restructure and to readjust strategies. Brands will have to refine their products and optimize their services if they want to stay competitive. Weaker competitors that don’t adapt will disappear. As a result, the market will be left with better and stronger players. 

For the remaining domestic brands, there’s a silver lining. In 2018, Chinese consumers showed strong demand for homegrown brands, especially the ones making a splash on international stages like fashion companies Li-Ning and Peacebird. In 2019, that preference for local brands will likely endure. 

Venture capital firms are shifting funds into new and rising food and beverage...

About the Author

Gao Ge is an analyst for 36Kr. Founded in 2010, 36Kr aims to be a reliable start-up platform that provides the latest entrepreneurial information, technology news, and features services such as investment and financing docking, equity investment, and rapid financing.

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