Local brands kill off easy-money era for multinationals in Asia

Zurich

NESTLE SA is losing buzz to an Indonesian coffee brand famous for brewing civet-cat faeces, and L'Oreal SA is losing face to a Chinese skincare brand favoured by President Xi Jinping's wife.

Asia traditionally was considered easy money for Western multinationals, with beverage makers, cigarette brands and fast-food giants capitalising on rising incomes and weak local competitors. A survey by China Market Research Group in 2011 showed 85 per cent of Chinese consumers preferring foreign brands.