The economy of China is increasingly becoming a domestic consumption oriented economy form an export-driven economy. As a result, consumption is booming and Chinese firms are focusing more on the local market than the overseas markets. By producing goods that most people can afford they are also taking market share from foreign multi-national firms. Hence Western companies are losing their market share and are no longer the preferred brand of Chinese consumers.

The following chart shows the change in the top 10 brands in China in 2018 relative to 2017:

Click to enlarge

Source: China’s dominance is about more than demographics, Money Observer

The implication of this shift among Chinese consumers is huge for foreign firms with substantial investments in the country. They can longer take Chinese consumers fro granted and have to work harder to compete and gain their businesses.