Promising Chinese Market Allures Foreign Businesses

AN impressive number of multinational corporation leaders have been giving their approval of China’s market performance this year.

- LI JIE

Comments like “China is one of the few markets with dazzling growth,” and “[China’s] market growth outperforms other global markets,” have been frequently heard in 2020.

The COVID-19 pandemic and its associated challenges have had a serious damaging effect on the global economy. However, as the circumstances of the epidemic prevention and control in China improve, and the economy is on an upward track, many foreign-funded businesses have been attracted to opportunities in the Chinese market. Aggressive new product listing plans, ongoing R&D and production input and an increasing number of headquarters of multinational companies being established in the country are examples of the faith shown by foreign investors.

Outstanding Growth

French personal care company L’Oreal witnessed a 30-percent increase in earnings in China in the second quarter, outperforming other markets across the world. Johnson & Johnson’s business in China rebounded briskly as its medical device arm logged double-digit growth.

In 2020, L’Oreal gained much attention in China despite challenges from COVID-19. Brands under the French cosmetics giant have opened many concept stores across China.

Along with the stores are new product lines, technologies, and brands, creating new shopping experience for consumers. For example, L’Oreal R&D center in China recently tailor-made an anti-wrinkle product for Chinese consumers. After it was launched, it became a hit product, breaking the record of online shopping platform Tmall’s sales of new cosmetics and skin care products.