- Western consumer goods companies with a significant presence in the country will feel the knock-on effects.
- High unemployment means lower income, which means less spending, which means higher unemployment. We will see tumbling sales for consumer staples companies like Coca-Cola, Unilever, Tingyi, and Unipresident.Smartphone sales are falling sharply. Nike is gloomy. Starbucks saw a 40% drop in sales in the most recent quarter. No more will China be the capital of luxury spending. And demand for commodities like coal and copper and iron ore is already tumbling.Executives based in China will be the last to admit the problem. People like the CFO of Adidas continue to profess «commitment» to the Chinese market. One wonders whom they are trying to convince. READ MORE (J Capital Research)
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