Insights from MNCs Senior Executives in China: Opportunities and Challenges for Brand Growth

October 2023

Since China has opened its economy over forty years ago, multinational corporations (MNCs) have made significant inroads into the Chinese market. Global brands, known for providing high-quality goods and services to Chinese customers, have earned gained popularity across the country. China is now the second largest economy and consumer market globally. The ascending number of the middle-income households here have persistent demand for consumption upgrade, generating considerable growth potential for international brands.

Against this backdrop, PwC hosted a round table in Shanghai for over a hundred of MNCs senior executives across more than ten industries to discuss the topic of rebuilding brand relevance in China. A poll was carried out to gather the business leaders’ thoughts about domestic competition, brand building and management, MNCs’ business plans and investment considerations in China.

In this survey, above 80% of the surveyed companies cited China's vast consumer market as the primary reason for their continuous investments in brand building, followed by economic growth prospects (47%) and strong consumer brand recognition (45%). We must acknowledge that, as local consumer demand is growing more diverse and complex nowadays, MNCs need to constantly adjust their strategies and accelerate localization in order to rebuild brand relevancy with Chinese consumers. These measures can make foreign brands more sustainable and diversified in local context, presenting opportunities for MNCs seeking to pursue growth in China.