China has become a “refuge” for many American companies. The Wall Street Journal website recently wrote that the recovery of China’s consumer economy has helped some American companies offset the losses caused by their severe domestic sales decline.
The article said that some well-known brand executives in the United States specifically mentioned in the latest earnings season that it was China that helped them through the difficult three months.
China provides a model of recovery, stability and growth. “American sports and leisure brand Skechers Chief Operating Officer David Weinberg said on the earnings call at the end of July. Skechers’ total sales in the second quarter fell 42% year-on-year, but it achieved 11.5 in the Chinese market. %growth of.
The article pointed out that from April to June this year, China’s retail sales showed a strong rebound, while US retail sales fell 8.1% year-on-year. As China effectively controls the new crown epidemic, many analysts expect China’s retail sales to resume its annual growth rate in the third quarter, while the United States and other Western countries still need to work hard to control the epidemic to fully open their economies.
The article also mentioned that many well-known luxury goods companies in other regions have also benefited from the Chinese consumer market. The head of investor relations of Moet Hennessy-Louis Vuitton Group stated that the Chinese market has well offset the company’s losses in other regions. The quarterly financial report released by Gucci owner Kering Group showed that its luxury brand sales fell 43% year-on-year in the second quarter, but increased by more than 40% in China.
