American Brands Lose Ground in China as Nike Sales Sink 30% Since 2021

1 articles · Updated · CNBC · Aug 21

U.S. consumer and auto brands are ceding share in China as geopolitical friction, stronger local rivals and weak local adaptation erode what was once a key growth market.
Nike shows the slide most clearly: its China business has shrunk 30% since 2021, while Starbucks has been undercut by Luckin Coffee, which now has more than three times its store count in China.
The pressure extends beyond retail. GM’s China earnings fell from about $2 billion in 2018 to losses in 2024 and 2025, as domestic automakers gained ground and new-energy vehicles reached 65.1% of new passenger-car sales in July.
Some foreign brands are still expanding by localizing better: Lululemon expects about 20% China growth this year, Ralph Lauren posted 40% quarterly growth, and Gap plans 50 new mainland stores in 2026 after handing operations to Baozun.
The divide suggests U.S. brands can still win in China, but only if they build local products, pricing and distribution instead of relying on global playbooks.