The local consumer goods companies have found ways to sustain their businesses by selling more rice crackers and washing machine in this period of economic slowdown in China. However, the luxury goods items such as Prada handbags and Rolls-Royce cars are showing steep decline in their sales.
The Chinese consumer goods market is a huge and a highly competitive market. The companies operating in this industry require to compete with their peer in order to boost their sales. Offering cheaper products, smaller packages at low costs, or enhancing products and customer services are the key strategies taken up by these companies.
In recent months, the retail sales have reported a growth of 10% on an annual basis, as per the official data, but market experts are not relying upon the data and figures produced by the government, believing that the government might be covering up the discrepancies between companies.
The demand for apparels, footwear, and other consumer goods has always been high in China. In previous times, it was easy for companies to meet the demand, but during this phase of economic slowdown, only those, who are offering differentiated goods are grabbing the opportunity.
Many multinational companies are focusing on the mass markets in China, as they have been good at maintaining their performance. PepsiCo, Coca-Cola, and Nike reported rising sales in China in their latest updates. Mr. Tim Cook, the chief executive of Apple, also told in a TV show that a robust growth is expected in the coming future in China.