Sunday, July 24, 2005

media - Image of foreign brands under threat

At least that is the conclusion of this article in the China Economic Net (a pickup from the headline service of Chinabiz). They collected all the scandals that have hit foreign brands in the recent past: Nestle, DuPont, Procter & Gamble, Johnson & Johnson, Unilever (Lipton), Colgate, Haagen Dazs, KFC and Kraft all get their place in a long row of consumer consumer scandals.
Chinese consumers have always trusted foreign brands, which they believe adhere to strict production standards and thus have credible quality. But these negative incidents are damaging the trustworthiness of foreign brands.
The negative incidents have also led to a sales decline of foreign brands. Proctor & Gamble's sales volume took a 30 percent hit in a month as a result of the SK-II skin cream scandal. And Nestle's other products like coffee and chocolate were badly affected by its substandard infant milk powder.
I'm not sure whether domestic brands do not have the same problems, but articles like this really focus on foreign brands, making it into a political problem too.

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