Slowing consumption in China and fierce competition from domestic rivals have weighed on the performance of many international consumer brands. And yet a select few, including Lululemon, Adidas, and Ralph Lauren, have managed to outperform their peers and post strong revenue growth in recent months.
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A key factor driving their success may be a growing polarisation of consumer preferences. Budget-conscious shoppers are seeking greater value for their money, while higher-income consumers continue to splurge on premium products for the experience and a sense of identity.
This divide has helped both luxury brands and those offering budget-friendly options to deliver solid performances in the China market.
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A polarisation of spending has also been observed in the food and beverage and retail industries, where businesses adopting localised strategies and catering to the preferences of Chinese consumers are outperforming their peers.
Here are a few notable examples of brands that are bucking the country’s sluggish consumer spending – and how they are doing it.