The trade war will make the risk of resisting consumers in Huamei Enterprises

At first glance, in the US -China trade war, the United States seemed to have the upper hand.The US trade deficit in China last year reached US $ 419 billion, which means that Chinese products that can be combated by tariffs in the United States must be far more than that of Chinese products that can be countercroofed accordingly.

However, there is a factor in China that may be more important than these trade figures, that is, Chinese consumers will vote with wallets and resist American products.If they do this, the impact on American companies will be direct and lasting.In the Chinese market, the competition is very fierce. Once American companies are resisted by consumers, their competitors will be able to take the opportunity to cause a permanent blow.

As a rational consumer, will you make purchase decisions based on factors other than the direct function of the product? This view is yet to be questioned.But Chinese consumers do not always follow the routine of traditional economic theory.Korean company Lotte has a personal experience in this regard.

Lotte has no popularity in Western countries, but is a retail giant in Asia.Until recent years, Lotte has maintained a large scale in China.In 2017, Lotte had 112 stores in China. At this time, Lotte has entered China for 10 years.

However, when the company agreed to sell a rural club in South Korea and the government's deployment of the Thaad anti -missile system, Chinese consumers expressed their opposition.The Sade system, which aims to protect South Korea from being attacked by North Korea, is an uninvited guest in the eyes of the Chinese government.

After Lotte agreed to sell the land, Chinese consumers responded with their wallets.Driven by media reports and social media, they have resisted the Korean retailer.In other parts of the world, consumer actions have always been difficult to say.For example, anti -ethnic isolation and related resistance have gained support after several years.

But in China, Chinese consumers are willing to take action quickly, and the effect is significant.After 6 months of resistance, Lotte announced that it would withdraw from the Chinese mainland market because of losses.This is not the first case about the anger of Chinese consumers.In 2012, due to consumers' resistance of Japanese goods, Japanese cars sold in China by 11%.

At that time, the inducement was friction between China and Japan around the Diaoyu Islands and its affiliated islands that were in the strategic place.This dispute has not been resolved so far, but the commercial losses brought to Japanese companies are real.

When the Philippine government and China rubbed on the issue of the South China Sea (China, the Philippines suddenly discovered that the buyer in their largest export market could not find a buyer in their largest export market.

After several years, Chinese consumers have appetite for the Philippines banana.After the newly elected Philippine President Rodrigo#65533; 6#65533; 1 Rodrigo Duterte's normalization with China, Chinese consumers did look back.According to the Xinhua News Agency (Xinhua), in 2017, the Philippines exported to China with a value of $ 288 million, an increase of 50%over the previous year.

These incidents lead to a question: With the continued fermentation of trade disputes, will American companies be similar to similar resistance? If so, will this resistance change the competitive position of American companies permanently?In a commentary article, Professor Jin Canrong, a professor at Renmin University of China, gave a positive answer.

The US company in China came in early. He wrote that in addition to making money, he also accounted for many markets. Last year, the US company made money in the Chinese market by more than $ 380 billion in hellip; hellip; and the Chinese company made more than $ 20 billion in the US market in the US market.The difference is far away.

Kim Can Rong said that if American companies lose the Chinese market, it is not ordinary workers who have lost their Chinese aspects, but mainly China ’s comprador MDASH; mdash; this word used to refer to the Chinese who served as agents for foreign institutions.

He described the business of American companies in China as one of the three ace of the United States in China's trade war.The other two are the rare earths that are prohibited from exporting to the United States for electric vehicle batteries and other advanced technologies, as well as selling a large number of US Treasury bonds held in China.

It is unclear whether such views will be popular.But if so, the behavior of Chinese consumers is likely to be unexpected by the Chinese government.If that's the case, for American companies such as Starbucks, Apple, GM (GM), etc., this will bring serious and permanent consequences.

Indeed, in a fierce market environment in China, as other competitors enter and consumers' habits or loyalty changes, companies may soon lose their market share, and they may soon be unable to return to the sky.

It is also an example of Lotte.The residual waves caused by the deployment of the US missile system incident may have dissipated.But Chinese consumers' preferences have changed.At the same time, e -commerce has achieved great development.China's online market is developing so fast, and most of Lotte's customers may now be shopping online.

Chinese cosmetics brands are also developing, maintaining low prices and continuously improved quality.Even if it is not resisted, Lotte, which sells high -end Korean brands, may have lost its competitive advantage.

American companies may also encounter similar fate.Taking Starbucks as an example, the company has faced competition from Luckin MDash; MDASH; this Chinese competitors who have just established 20 months have opened about 2,000 stores and listed on May 17.

The price of Ruixing Coffee is cheaper than Starbucks.It also aimed at Chinese smartphone users, providing ordering and delivery services, and Starbucks lags behind in this regard.Ruixing is expanding at an alarming speed.After completing the first public offering (IPO) and a valuation of $ 4 billion, the company plans to expand the number of operating stores to 10,000 by 2021.There are 3,700 stores in Starbucks in China for 20 years.

Apple is also facing adversity.According to data from the research company Canalys, in the first quarter of 2019, Apple's iPhone sales fell by 30%in China, from 9.3 million in the same period last year to 6.5 million units.Wired magazine reported last month that this may be the result of Chinese consumers responding to the United States' suppression of Chinese mobile phones and telecommunications equipment manufacturers, Huawei, MDASH; MDASH; indicating that if China really wants to retaliate, Apple will be Apple will be Apple.Become a target.

In the Chinese smartphone market, Huawei has grown the most in recent years.Leaving aside the trade war, Huawei has good quality and low prices, and is favored by many consumers.

In such a fiercely competitive environment, if Chinese consumers have resisted again, Apple and other American companies may not be able to take the right track in the next years.In this way, in China, which is about to become the world's largest consumer market, American companies will have no place.