Import competition has long been a challenge for U.S. businesses, from furniture and toys to electric vehicles and solar panels. A Journal of Marketing study highlights how marketing leadership, strategic differentiation, and robust customer relationships can help firms weather these pressures and sustain revenue growth.
Authored by Nandini Ramani (Mays Business School, Texas A&M University), the research examines the impact of the “China Shock,” a surge of imports that disrupted U.S. industries between 2000 and 2019. The findings provide actionable insights for business leaders facing the ongoing challenges of global trade.
“Import competition can devastate industries, but my research shows that firms with strong marketing leadership and clear differentiation strategies are more resilient,” says Ramani. “Marketing plays a critical, often overlooked role in helping firms adapt and thrive.”
Key Insights
- Marketing Leadership is Crucial
Firms with influential marketing departments are better equipped to innovate, respond to changing market conditions, and lead cross-functional initiatives that enhance brand loyalty. - Strategic Differentiation Matters
Brands emphasizing unique product features, sustainability, and local production—such as “Made in America” campaigns—are more successful in retaining customers and justifying premium pricing, even when competing with lower-cost imports. - Customer Relationships Drive Resilience
Long-standing trust and loyalty with customers reduce the risk of losing market share to foreign competitors. Firms with robust customer relationship capital create switching costs and foster a strong sense of brand loyalty.
Implications for Business Leaders
For executives, the findings emphasize the need to elevate marketing as a strategic function. Firms that sideline marketing leadership or cut marketing budgets during financial pressures risk falling behind in highly competitive markets.
“Marketing must have a seat at the table in strategic decision making,” says Ramani. “Boards and CEOs can empower marketing leaders by increasing their visibility, expanding their responsibilities, and ensuring they are involved in critical discussions.”
Firms should also invest in differentiation strategies that go beyond cost competition. Efforts like customization, sustainability, and superior product quality can help companies build stronger connections with consumers and maintain market share.
Recommendations for Policymakers
Policymakers should look beyond trade barriers like tariffs to protect domestic industries. Instead, they should support firms to develop superior marketing resources and capabilities.
“Policy can play a significant role in helping firms compete globally,” says Ramani. “Marketing is a market-driven solution that complements traditional trade strategies.”
Preparing for Future Import Challenges
The lessons from the “China Shock” are particularly relevant today, as experts warn of a potential “China Shock 2.0.” Sectors such as electric vehicles and solar panels may soon face significant import competition. Firms must act now to strengthen their marketing capabilities and differentiate themselves in an increasingly globalized market.
“Resilience isn’t just about cutting costs—it’s about building customer loyalty, offering superior products, and empowering marketing teams to lead,” adds Ramani.
Full article and author contact information available at: https://doi.org/10.1177/00222429251319310
About the Journal of Marketing
The Journal of Marketing develops and disseminates knowledge about real-world marketing questions useful to scholars, educators, managers, policy makers, consumers, and other societal stakeholders around the world. Published by the American Marketing Association since its founding in 1936, JM has played a significant role in shaping the content and boundaries of the marketing discipline. Shrihari (Hari) Sridhar (Joe Foster ’56 Chair in Business Leadership, Professor of Marketing at Mays Business School, Texas A&M University) serves as the current Editor in Chief. https://www.ama.org/jm
About the American Marketing Association (AMA)
As the leading global professional marketing association, the AMA is the essential community for marketers. From students and practitioners to executives and academics, we aim to elevate the profession, deepen knowledge, and make a lasting impact. The AMA is home to five premier scholarly journals including: Journal of Marketing, Journal of Marketing Research, Journal of Public Policy and Marketing, Journal of International Marketing, and Journal of Interactive Marketing. Our industry-leading training events and conferences define future forward practices, while our professional development and PCM® professional certification advance knowledge. With 70 chapters and a presence on 350 college campuses across North America, the AMA fosters a vibrant community of marketers. The association’s philanthropic arm, the AMA’s Foundation, is inspiring a more diverse industry and ensuring marketing research impacts public good.
AMA views marketing as the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. You can learn more about AMA’s learning programs and certifications, conferences and events, and scholarly journals at AMA.org.
Marilyn Stone is Director, Academic Communities and Journals, American Marketing Association.