‘Made in China,’ Once a Badge of Derision, Finds New Fans—in China

In 2008 at least six babies died and 300,000 fell ill after drinking made-in-China infant formula tainted with toxic chemicals. In response, many Chinese parents embraced foreign brands, catapulting the likes of Danone SA’s Aptamil and Nestlé SA’s Illuma to the top of the market. Yet for the past two years, the leading formula brand in China has been made by China Feihe Ltd., a Beijing company that emphasizes its local roots rather than seeking to obscure them. “More suitable for Chinese babies,” the company’s advertising boasts.

In categories ranging from baby food and bottled water to sportswear and skin cream, Chinese brands are putting pressure on global rivals that depend on the country for much of their growth. While increasing nationalism has boosted the momentum of domestic products for the past couple of years, the Covid-19 pandemic is hastening the shift. With prices typically lower than foreign brands’, domestic products have increasing appeal in times of constrained household budgets, and the growth of online sales has weakened the multinationals’ advantages in distribution and marketing. “Chinese shoppers are showing stronger confidence in local brands,” says Helen Wong of Qiming Venture Partners, which has backed local startups such as lingerie maker Neiwai and cafe chain Coffee Box. “The coronavirus is accelerating the trend as people stay home, watch livestreaming, and shop.”