Major companies among them said Ermis L’Oreal, Coca-Cola, United Airlines and Unilever And Mercedes Chinese customers are cutting back on spending as the crisis continues Real estate And high rates Unemployment Among young people.
Some have already started Companies In adjusting its strategies in the Chinese market.
Company said Mersin French Carbon Graphite Manufacturing announced last week that it would close a factory that manufactures electricity transmission products in China due to the difficulty of competing with local companies.
At the same time, global food companies such as Danone Nestlé may promote price reductions or increase online sales.
CEO James Quincey said coca cola In conjunction with the earnings announcement on October 23, the operating environment in China remains difficult.
“It does not look like the economy will improve,” he added to investors.
And you pledge Chinese government By providing more support, but the scope of additional stimulus measures and the timing of their implementation are not yet clear. The government has not yet convinced investors that its efforts will boost the $18.6 trillion economy.
Despite the slowdown, some companies are still making investments.
And confront Ermismaker of Birkin handbags, has seen a decline in the number of buyers but is making up for it by seeking to increase the amount each customer spends on average during each purchase. Ermes sells jewellery, leather goods and ready-to-wear clothing for men and women.
After opening a store in Shenzhen last week, Hermes plans to open another store in Shenyang in December and a flagship store in Beijing next year.
But others believe that the business environment in China has changed in ways that will last for a long time.
said CEO Scott Kirby United Airlines “We used to operate approximately ten flights a day to China, but I think those days are over.”
The company now operates up to three flights a day from Los Angeles to Shanghai and does not expect this situation to change soon.
“The situation has completely changed,” Kirby said.
During the third quarter results announcement season, which is currently ongoing, company executives focus on talking about the business environment in China and describe it as difficult.
Ermenegildo Zegna, chairman and CEO of the Italian luxury goods group that bears the same name, said he expects the “difficult” situation in China to continue until at least early 2025.
The company said (LVMH) LVMH, whose sales in China helped make it the largest European company by market value until last year, said consumer confidence in the country had reached its lowest levels ever.