China’s FMCGs: Competing hard for margins – and talent
Can talent strategy keep up?
Candy Cai | China
Nèijuǎn. This is the Chinese term for an exhausting rat race. Yet the country has skilfully transformed intensity into a world-leading strength, writes Candy Cai, a Director of Amrop China.
Pop Mart is the birthplace of the toothy Labubu doll. Based on edgy IP, cult appeal, and the hype of the ‘blind box,’ the toy company’s product ranges are a global phenomenon. Young influencers and veterans from Kim Kardashian to Cher and David Beckham have all been spotted with one.1
Like many Chinese peers, Pop Mart rolls out new versions with the speed of a digital company. Perhaps this is why its supply chains struggled during early demand peaks. Undeterred, it transformed empty shelves into ‘hunger marketing.’ Customers posted appeals on social media and rushed to reserve product. Second hand prices surpassed retail.
Pop Mart is just one example of the sheer velocity at which Chinese FMCG companies must operate, and foreign multinationals must emulate. E-commerce, accounting for 40%-50% of business, fuels the engines even more. Online pricing is transparent, consumers price‑sensitive, and loyalty fragile. Young buyers demand variety and boldness: if a foreign cosmetics multinational offers ten colors, a local cosmetics brands offers thirty – at lower prices.
Both multinationals and Chinese firms have distinct strengths
Local Chinese firms excel in supply chain agility, fast decision-making, and responsiveness to local trends. Foreign multinationals run more structured governance, long-term strategies, and operational rigor. They have robust processes, strong compliance, and global brand consistency. But they are slower to adapt.
L’Oréal is an exception, blending the best of both worlds. Acting like a deeply integrated local player, it has a localized backbone: a major manufacturing hub and a 20-year-old R&D center. It leverages innovation through AI and partnerships with local biotechs, allowing ‘China-speed’ iteration.
But many Chinese companies are now on their own overseas expansion drive – from automotives Xiaomi and BYD to bubble tea chains Heytea and ChaBaiDao (ChaPanda). In 2025, a company aspiring to be the ‘Starbucks of China’ listed in the U.S., hiring seasoned executives there. Pre-COVID we worked mainly with multinational hiring organizations. Today, at least half of our clients are local Chinese companies – including locally-acquired multinationals.
The hunt for ‘executive athletes’
Chinese firms and multinationals share the need for fast learners who combine agility with operational weight. High caliber CEOs, function heads, China GMs, and board members have strong track records. But these can also mean they are backward looking and rigid. Resting on past achievements, they may struggle to adapt to a new environment or learn from others (especially younger teachers).
And they must step up, because younger generations are in the lead; in China, seniority doesn’t equate to years on the clock. Chinese hiring organizations – especially start-up or internet players - favor energetic young hires who can keep pace with Nèijuǎn. When retail veterans are hired, they are as dynamic as their younger colleagues.
Chinese firms have another preference: Chinese nationals with multinational experience. And they do not need to gain it abroad. Just as well, as many Chinese executives are losing appetite for overseas roles. After all, they are well served in China - a massive market offering faster career progression than its overseas competitors and tempting APAC roles. Those who do take flight prefer 1- or 2-year assignments, quickly returning home to stay relevant.
What Chinese talent wants now
An APAC or global role. A compelling development plan, financial incentives, and the promise of a future in vibrant China. All are keys to attracting prized Chinese candidates.
In the war for talent, multinationals do still have advantages. Beyond operational excellence, their cultures are generally more caring than fast-growing local start ups with low tolerance for slow results. Even if matters are improving, many newcomers fail their probation or opt out within one or two years. We often see executives with a long multinational history who briefly joined a local company, only to default back to a multinational. Adaptability is essential.
But fast-growth Chinese players have other cards in the deck: faster career progression, and equity. Several brands founded in the past decade are now posting an annual turnover of around USD 1 billion, offering financially risk-tolerant candidates returns that may double or triple overseas earnings. Even if a starting package may be comparatively low, it will be richly compensated over time.
A balanced response to growing pains
During the fast‑growth phases of a Chinese company, at least a third of hires come from internet firms: young, agile, and adaptable to a rollercoaster demanding relentless energy and engagement. But not all foreign multinationals offer a gentle ride. Striving to compete with local Chinese rivals, a leading French cosmetics firm considers 12 hour working days as standard.
How can hiring organizations combine exuberance and gravitas? They need the former to compete, and the latter to manage the operational risks which inexperienced executives cannot anticipate or handle.
For many, the answer lies in diversified experience. Candidates fluent in both local and multinational contexts bridge agility with governance; those combining MNC and start‑up exposure unite the discipline of operating at scale with entrepreneurial speed. High adaptability signals learning agility and cultural intelligence, reducing integration time and strengthening innovation, resilience, and competitive advantage.
The Chinese FMCG sector is defined by speed, innovation, and competition. This is a place of rapid product cycles, digital‑driven demand, and bold consumer expectations. Local firms and multinationals alike must put talent strategy front and center – securing executive athletes who blend agility with operational depth. Both have strengths: Multinationals offer stability and care, fast‑growth locals provide accelerated careers and a significant equity upside.
Our task is to help hiring organizations – and executive candidates - to get the blend right.
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1 Buzzfeed, (2025). 26 Celebs Who Have Been Spotted With A Labubu, In Case You Were Wondering. August 17, 2025.
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