Operational Excellence (OPEX) Daily Briefing – Friday, October 17, 2025: Listen to Your Customers or Disappear: OPEX Lessons from BMW, Uniqlo, and IKEA in China.

Điểm Tin Operational Excellence (OPEX) Mỗi Ngày – Thứ Sáu, Ngày 17/10/2025: Nghe Khách Hàng Hay Biến Mất: Bài Học OPEX Từ BMW, Uniqlo Và IKEA Tại Trung Quốc.

Welcome to my unique weekday article for the paid subscriber-only edition.

Operational Excellence (OPEX) Daily Briefing – issued on weekdays (Monday to Friday).

Điểm tin Operational Excellence (OPEX) hằng ngày (phát hành các ngày thứ Hai đến thứ Sáu).

This is the bilingual post in English and Vietnamese. Vietnamese is below.

Đây là bài viết song ngữ Anh-Việt. Tiếng Việt ở bên dưới.

Don’t forget the unique BizDecoded series.

English

Part 1: Official Announcement

On October 17, 2025, according to Reuters, several major international corporations — including BMW, Uniqlo, and IKEA — are struggling in the Chinese market as local brands gain dominance through a deeper understanding of domestic consumers and faster innovation cycles.

In an article titled “Global companies struggle in China as home-grown brands steal the spotlight,” Reuters reported that once-dominant global brands are now facing a dramatic shift in Chinese consumer behavior, especially among younger generations. Chinese consumers are increasingly favoring domestic brands — not merely for their lower prices, but for their relatable design styles, personalized products, and rapid response to emerging trends.

For example, Chinese EV manufacturers such as BYD and NIO have overtaken BMW and Mercedes in the domestic electric vehicle market. In retail, IKEA is facing fierce competition from local furniture brands that design compact, space-saving interiors tailored to urban apartments. Meanwhile, in fashion, Uniqlo — once seen as the minimalist icon — is losing ground to Chinese brands like Bosideng and Peacebird, which are more agile in capturing local fashion trends and leveraging social media.

According to market analysts cited by Reuters, the challenge does not stem from product quality but rather from the disconnect between global brands and modern Chinese consumer behavior. Younger consumers are no longer drawn to the allure of “premium Western labels.” Instead, they seek experience-driven, personalized, and culturally authentic brands that resonate with their identity.

A researcher from the Shanghai Institute of Consumer Studies remarked:

“Today’s Chinese consumers don’t just buy products — they buy stories, lifestyles, and emotions connected to the brand. Local companies understand this deeply and react much faster.”

In this context, multinational corporations are being forced to rethink their operating models — from marketing strategy to supply chain execution — to adapt to China’s highly dynamic and localized market.

While these global giants still maintain international prestige, it is clear that the rules of the game in the world’s largest consumer market are changing. In this new environment, speed, customer understanding, and adaptability — not heritage or size — will determine who stays in the game.