Is Now The Time To Invest in China?
This article was originally published on Jing Daily.
It’s clear that COVID-19 has been a reality check for companies with any kind of business in China — from manufacturing to supply — and they need to consider their ROI when reaching out to Chinese consumers. So how have they reacted thus far, and what should these brands do in the future to survive on the mainland?
For weak brands, a forced exit from China
As social distancing cuts into retail traffic, brands that haven’t made a long-term investment in China will fall behind. COVID-19 has exacerbated those competitive advantages, forcing some brands to quickly depart from China or else find a local partner to help them dive further into the market.
For example, the British multi-brand beauty retailer Space NK recently announced that it would shutter its businesses in China after two years of operating eight physical stores and an online Tmall store. E-commerce Agency Azoya pointed both to the brand’s lack of product range and its low-quality digital promotions as the reason for this sudden departure. Similarly, the Hong Kong- and Germany-based retailer Esprit will close its mainland stores by May 31. Read more Jing Daily