The Most Popular American Brands In China
> Market share: Most fast food stores (4,260 stores)
> Industry: Fast food
> Competition: McDonalds, Subway, Wendy’s
The Yum! Brands-operated KFC is by far the largest fast food company in China. Last year, Yum! opened 560 new KFC restaurants in the country. It plans on opening another 700 restaurants in the coming year to add to the 4,260 KFC stores it had at the end of the fiscal year. Even without the new stores it plans tgo add, KFC already has more than double the amount of stores as its closest competitor, McDonald’s, which has roughly 2,000 stores, according to the Guardian. Aside from the 560 KFCs, most of the remaining stores opening were Pizza Huts. According to Yum!, the China market accounted for 42% of its KFC segment’s profit in 2012. The company suffered a setback recently after Chinese food regulators launched an investigation into its poultry supply following media allegations of excessive use of antibiotics and hormones.
> Market share: 70% (worldwide)
> Industry: Personal products
> Competition: Schick
Gillette entered China in 1992, when it was its own company, by joining forces with the Shanghai Razor Blade Factory. Currently, Gillette holds a 70% market share worldwide in men’s grooming, as 800 million people use its products each day. Gillette is just one of the products made by P&G that dominate the Chinese market place, with other market leaders including Safeguard, Olay, Pampers and Tide. Between 2002 and 2012, Procter & Gamble’s net sales in China grew by an average of 17% annually. The company earned approximately $2 billion in revenue from China in 2012. With Gillette way ahead worldwide, competitors are looking to narrow the gap. Energizer-owned Schick has recently teamed up with Unilever-owned Axe to create Axe razors to compete in the Chinese market.
> Market share: 16.6%
> Industry: Beverages — Soft drinks
> Competition: Pepsi
Market leader Coca-Cola’s soft-drink market share in China was 16.6% in 2012, according to Euromonitor International. Rival PepsiCo was well behind with just 5.1% of the market. In the first quarter of 2013, Coca-Cola, which includes Coke, Sprite and Fanta, reported that volume sales in the country rose by a mere 1% compared to the same period last year. This weakness, blamed by a slowdown in China’s economy, is expected to continue. “As we look ahead to the next six months, it is reasonable to expect that China’s ongoing economic slowdown may have a short-term effect on our industry and on our business,” CEO Muhtar Kent said on the most recent earnings call. This month, Coca-Cola announced plans to invest an additional $4 billion into expanding its footprint in China. The company has 42 plants around the country and employs approximately 50,000 workers. A Coca-Cola executive in China, Bai Changbo, told Xinhua news agency that the average person in China drinks 39 bottles of Coke a year, well below the 400 bottles annually consumed by Americans.
> Market share: 85.2% for PC semiconductors (global)
> Industry: Semiconductors
> Competition: Advanced Micro Devices, Samsung
As of the first quarter of 2013, Intel had a whopping 85.2% market share of PC semiconductor chips globally. Lenovo, which runs on Intel chips, currently has a nearly 40% market share in China for PCs. Lenovo accounted for 11% of Intel’s revenue in 2012. Also, 18% of Intel’s revenue came from Hewlett-Packard and 14% from Dell, both of which have a sizable presence in China’s PC market. However, Intel could be having will have problems in the future as more people move away from personal computers in favor of smartphones and tablets. Of all semiconductor sales, which includes semiconductors used for tablets and smartphones, Intel had a worldwide leading market share of 15.7% compared to Samsung’s 10.1%. But Samsung’s revenue rose 6.7%, compared to Intel’s 2.4% decline.