2018-08-27

Trade Fight Impacting U.S. Brands

Here in March: Prepare for Smashed Up KFCs and McDonald's
If I was running a visible American brand in China, I'd be thinking about lowering my profile right now. China could unleash nationalist riots in response to a trade spat.

SCMP: McDonald’s, Starbucks could take a hit in China as trade war fuels anti-US sentiment
“There is a huge risk in general for American brands, but especially for iconic ones like Starbucks,” said Shaun Rein, managing director at China Market Research Group. “With increased competition, combined with nationalism, and the trade war as a back drop, it is very possible Chinese consumers will boycott McDonald's and Starbucks and instead go to Chinese brands.”

DW News: 贸易战下为何中国人没有抵制美国品牌 韩媒揭原因
Yonhap News Agency reported on August 27 that for this phenomenon, marketing experts said that in April, China’s social media launched a campaign of “not buying American products”, but did not receive consumer response. With the intensification of Sino-US trade wars, the Chinese government may target guns at American brands. Chinese consumers are not too dissatisfied with the American brand, nor have they carried out a boycott. On the contrary, due to the Sino-US trade war, the growth rate of corporate profits in China has slowed down for three consecutive months. Concerns about the Chinese economy are constantly expanding.
Trade spat is the more accurate term than trade war today. Economic growth is slowing, but relatively healthy. If one or both of those factors change, then there will be a visible boycott in sales, if not a literally visible boycott with protests outside of restaurant and stores.

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