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Multinational giants defy China’s sluggish retail market with strong 2026 sales

The likes of Adidas and L’Oreal are thriving in the evolving market, showcasing strong growth driven by changing consumer demands

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Customers sit and drink coffee inside a Starbucks Reserve store in a shopping mall in Shenzhen. Photo: Getty Images
Zhu Wenqianin Beijing

Major consumer goods multinationals – including Coca-Cola and Unilever – have reported strong sales growth in China during the first half of the year, indicating continued opportunities in the world’s second-largest consumer market despite headwinds.

The revenue figures disclosed in corporate exchange filings marked a sharp contrast with sluggish overall domestic consumption data, raising the question of whether overseas investors are underestimating some companies amid a “K-shaped” recovery, where growth has become increasingly uneven across sectors.

In the first six months of the year, German sportswear maker Adidas saw sales rise by 16 per cent year on year in China, reflecting strong market share gains, the company said in its half-year earnings report on Thursday. The firm added that growth tied to the 2026 Fifa World Cup had also offered a boost.

Meanwhile, French cosmetics group L’Oreal posted growth across all categories and regions in the first half of 2026. Performance in North Asia was primarily driven by China, where the market continued to recover gradually, supported by a rebound in the selective segment, according to its financial results announced on Wednesday.

“Multinationals’ sales growth reflects profound structural segmentation in China and is primarily driven by consumption upgrading and demand divergence trends,” said Fu Yifu, a special research fellow at Su Merchants Bank in Nanjing, capital of the eastern province of Jiangsu.

“Against a sluggish broader market, demand for quality-value products and self-reward spending gains traction. The key for companies lies in accurately identifying and catering to evolving consumer demands,” Fu added.

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