You are here: Home » International » News » Companies
Business Standard

Not just Apple, FedEx, Starbucks are casualties of China's slowdown as well

The coffee behemoth opens a new store in China every few hours and expects it to become the company's largest market

Angus Whitley | Bloomberg 

Starbucks
Photo: Reuters

Inc. has become the latest and biggest corporate casualty from the pullback of the Chinese consumer.

The smartphone maker, which pinned its reduced revenue outlook on a slowdown in the country, joins a growing list of struggling as a trade war with the US and an equity selloff weigh on the world’s second-largest economy.

Here are other prominent now finding it harder to sell everything from cars to takeaway coffee in China:

FedEx

The US delivery giant slashed its profit forecast in late December -- just three months after raising it. While Corp.’s woes weren’t limited to China, the company cited trade tensions, especially between the U.S. and China, among its troubles. Chief Executive Officer said most of the problems he faced were due to “bad political choices.”

Starbucks

The coffee behemoth opens a new store in China every few hours and expects it to become the company’s largest market. But last month, Corp. said sales growth in China could be as low as 1 percent in the long term. That’s slower than the 3 percent to 4 per cent growth seen for the U.S. and the rest of the world. It’s not clear how much China’s economy or trade tensions are to blame -- or if China is just losing its taste for caffeine.

ALSO READ: Apple cuts revenue forecast citing fewer iPhone upgrades, low China sales

Tiffany’s

China’s economic woes are more of a headache for the jeweler outside the country than inside. In November, & Co. reported weaker-than-expected sales and highlighted a “clear pattern” of Chinese shoppers cutting back on spending when they’re overseas. It’s a trend first highlighted by Louis Vuitton owner in October as Chinese officials cracked down on travelers returning home with undeclared goods in a bid to encourage local consumption instead.

Daimler

The German maker of Mercedes cars was among the first global brands to blame escalating trade tensions when it warned in June that retaliatory tariffs in China on car imports from the U.S. would hit sales on the mainland. Daimler AG cut its profit a second time in October -- but didn’t single out the trade war as a culprit. and BMW AG have since weighed in, saying they’ve been hit by sinking demand in China.

First Published: Thu, January 03 2019. 10:13 IST
RECOMMENDED FOR YOU