China used to be a cash cow for western companies. Now it’s a test lab.

For Western companies in China, a new reality has set in: The easy money is gone and competition is only getting fiercer.

- Hannah Miao

As China's economic growth has slowed in recent years, consumers have become choosier about their spending. Meanwhile, the rise of formidable local rivals has crowded the market and driven vicious price wars, eating into profit margins.

International brands are getting more realistic. Their strategies vary by company and industry, but include tailoring products to Chinese tastes, developing them at a faster pace, marketing them differently and lowering prices.