Business & Finance
Major US brands face declining market share and revenue in China
Intense domestic competition, changing consumer preferences, and geopolitical tensions have led several prominent American companies to retreat or restructure regional operations.
The short version
- Prominent American brands including Nike, Starbucks, and General Motors are experiencing declining sales and market share in China.
- The downturn is driven by aggressive domestic competitors, a consumer pivot toward local products, and rising geopolitical strains.
- Multiple U.S. firms are restructuring, seeking local partners, or divesting assets, though select brands like Lululemon and Ralph Lauren maintain strong regional growth.
- The primary unknown is whether localization strategies and joint ventures will successfully stabilize market positions amid persistent price competition.
Key facts
- Nike's revenue in China has dropped 30% since 2021, reaching an eight-year low in the spring.[CNBC]
- General Motors posted consecutive annual losses in China in 2024 and 2025, down from regional annual earnings of approximately $2 billion in 2018.[CNBC]
- According to S&P Global Mobility, the combined global market share of Detroit's Big Three automakers declined from 21.4% in 2019 to an estimated 15.7% in 2025.[CNBC]
- China Passenger Car Association data showed new energy vehicles represented 65.1% of new passenger car sales in China in July, rising from 54% a year prior.[CNBC]
- Gap sold its Chinese operations in 2022 to Baozun for $40 million, subsequently reaching break-even with plans for 50 new mainland stores in 2026.[CNBC]
- Bucking the broader downturn, Lululemon projected approximately 20% annual growth in China, while Ralph Lauren reported a 40% quarterly increase.[CNBC]