U.S., Europe brands take on the Chinese consumer
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Pictured here is Louis Vuitton’s new cruise ship-shaped store in Shanghai, China, on June 28, 2025. Bloomberg | Bloomberg | Getty Images BEIJING — China’s economic slowdown isn’t discouraging U.S. and European brands from revamping their strategies to reach Chinese shoppers. Instead, the allure of the world’s second-largest consumer market is forcing companies to adapt in the face of growing competition from local brands. In the case of Kraft Heinz, getting more people in China to buy ketchup this year also meant hiring a local agency to help create catchy campaigns — decorating subway station columns to mimic ketchup bottles and promoting the condiment as a fresh twist on a popular dish: stir-fried eggs and tomatoes. It’s a hard market to tackle, even for Shanghai-based marketing firm Good Idea Growth Network (GGN). The agency has witnessed at least five different waves of consumer trends in its 14-year history, founder Stephy Liu, said in Mandarin, translated by CNBC. “The gameplay keeps on changing.” But GGN has succeeded even after rejecting an acquisition offer from British advertising giant WPP, Liu said, noting that about half of her clients are foreign brands. While Kraft Heinz isn’t done with its China ketchup campaign yet, the company reported second-quarter net sales in emerging markets climbed by 4.2% from a year ago, helping offset declines in North America. WPP explored a potential acquisition of GGN but did not end up going far in the process, according to a person familiar with the discussions. Kraft Heinz did not immediately respond to requests for comment. Localized social media From Starbucks’ struggles to Lululemon’s successes in China, it’s become clear that the right mix of localization is essential. “Among international brands in China, the winners are often dedicating more than 40% of revenue to marketing, especially content and platform-first…
Filed under: News - @ October 4, 2025 1:22 am