All Change As Companies Adap to the Downturn

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While the slowdown starts to bite, news of foreign companies adapting to changing conditions is starting to roll in – whether in retail, IT or coffee, things are being shaken up. The Wall Street Journal reports that:

    “…French retailer Carrefour SA is touting discounts on everything from food to wine to appliances. It says the discounts are its biggest since entering the Chinese market in 1995.

    Meanwhile, Procter & Gamble’s Gillette brand plans to amp up a family-centric campaign for its razors that is meant to tug at the heartstrings — and keep customers from switching to cheaper brands.”…Some marketers are taking steps they hope will make their advertising more cost-effective, such as using in-store displays and Internet marketing instead of TV ads, said Shaun Rein, founder of Shanghai-based consulting firm China Market Research….Others are focusing on discounts.”

CNN reports that Apple is also updating its operations in China:

    “U.S. tech giant Apple Inc. (AAPL) said Tuesday it had started selling discounted secondhand products in China to court more customers.

    The used products, offered on Apple’s Chinese online store, include iPod shuffle music players at CNY308 each ($45) and iMac personal computers priced at more than CNY14,000.”

Meanwhile, as China looks set to becomes a net importer of coffee , Reuters reports that Starbucks, ”keen to boost business in China, is brewing ahead of the Lunar New Year a limited-edition blend that includes, for the first time, Chinese beans…”Our priority is local relevance,” Li told Reuters. “We are very proud of this coffee and we have full confidence that it will be popular with our customers.”

…The blend is on sale as “coffee of the week” in Starbucks’ 700 outlets in Greater China, as well as stores in Singapore and in Malaysia ahead of the Lunar New Year…
…the company sees China as one of its fastest growing markets, even as it closes down stores in other markets racked by recession.”

We suspect that the slowdown will help a lot more foreign companies wake up and smell the localized coffee in the year of the Ox.

One Response to “All Change As Companies Adap to the Downturn”

  1. Archive » Briefly…Food Safety, Online Politics, Economic Issues & Impact, Labour Law, Fraud & Corruption| China Business Blog Says:

    […] We reported recently on how foreign companies are dealing with changing economic conditions – and have warned before about price […]

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