GOOD MORNING FROM LONDON #197
An interesting new business development of growing significance is the Chinese Consumer. Is he/she just a buyer with money or a consumer of real clout going forward? Nike and H&M faced a Boycott Backlash in China when they, initially, sided with China’s opponents banning cotton products from Xinjiang due to alleged “forced labour”.
Now Tesla – who adopted contemptuous attitudes to Chinese customers complaining about malfunctioning brakes. It all broke at a Shanghai auto show this week when Tesla stalled compensation discussions with a Chinese car buyer. Tesla hit a backlash and had to apologise big time after the Central Commission for Political and Legal Affairs concluded Tesla had acted arrogantly. We in the West are used to such action from big companies. Not so in China.
Tesla has big ambitions in China. Its Model 3 sedan was the country’s best-selling electric car in 2020 and its $6.7bn sales make China its second-largest market after the US. Watch it!
The world is changing – not just BRI/S China Sea/Climate Change but also in showing respect to the Chinese customer.