虎嗅APP·2025-08-31 03:06Core Viewpoint - Foreign companies in China are increasingly divesting their businesses, a trend exemplified by brands like Starbucks, Decathlon, Häagen-Dazs, and IKEA, which are selling stakes in their Chinese operations. This shift is not indicative of a lack of confidence in the Chinese market but rather a strategic adjustment to leverage local capital and expertise for better market penetration and brand expansion [4][5][10]. Group 1: Exit Trend - In the summer of this year, a wave of foreign companies began to exit the Chinese market, with notable brands like Starbucks planning to sell 70% of its Chinese business for an estimated $5 billion to $10 billion, and Decathlon looking to sell 30% of its Chinese subsidiary, valued at approximately 10 billion RMB [9][10]. - Historical precedents for such divestments include Yum Brands selling its Chinese operations in 2016 and McDonald's selling a majority stake in its China and Hong Kong business in 2017 for $2.08 billion [9][10]. - The trend of foreign companies selling stakes in their Chinese operations is not new, as many have previously relied on brand strength for rapid expansion but later faced growth bottlenecks, leading to a transfer of operational control to local capital [10][11]. Group 2: Reasons for Divestment - The rise of domestic competitors has intensified pressure on foreign companies, with Starbucks' market share dropping from 34% to under 15%, and Decathlon experiencing a nearly 16% decline in net profit last year [13][14]. - Foreign companies struggle to adapt to the unique characteristics of the Chinese market, particularly in lower-tier cities, where their traditional business models do not resonate with local consumer preferences [14][17]. - The operational challenges faced by foreign firms include a mismatch between their standardized global strategies and the need for localized management, product offerings, and marketing approaches [17][18]. Group 3: Transformation Strategy - Despite the challenges, foreign companies like Starbucks and Decathlon still maintain significant market presence, with Starbucks having 140 million registered members in China and Decathlon achieving over 10 billion RMB in revenue last year [19][20]. - The divestment strategy is seen as a shift from heavy asset ownership to a more flexible partnership model, allowing foreign brands to remain involved as shareholders while leveraging local expertise for growth [25][26]. - Successful examples of this strategy include KFC and McDonald's, which have seen renewed growth after transferring operational control to local partners, indicating that a localized approach can yield better results in the Chinese market [25][26].