For years, China was the market that global consumer companies could count on for growth. American brands expanded aggressively across the country, betting that rising incomes and the appeal of foreign labels would keep drawing consumers. That formula is no longer working as reliably as it once did.
Some of America's best-known companies are finding themselves squeezed by a combination of economic headwinds and a new generation of highly competitive Chinese rivals. Domestic brands have become more sophisticated, more innovative and often more responsive to local tastes. At the same time, weaker consumer confidence has made shoppers more price-conscious. As a result, several American brands that once dominated their categories are losing market share in a country that was long viewed as indispensable to their global ambitions.
