Where are the Chinese brands?

SUNDAY, JULY 14, 2013
Where are the Chinese brands?

A New York Times columnist recently claimed Chinese companies were terrible at branding, citing US research showing that only 6 per cent of Americans could name a Chinese brand. He then went on to list the reasons why China has struggled in this area. Mos

How much of this is true? And what are the implications for Chinese companies as they seek to raise their profile with international consumers?
While Chinese brands may have a low profile with American consumers, the influence of Chinese companies on the world stage isn’t in dispute. Boston Consulting Group’s 2013 list of 100 “global challengers”, or firms from emerging markets which are “disrupting the established order of many industries”, contained 30 Chinese entries.
The list includes names such as Alibaba, Lenovo, Haier, Geely, Huawei and China UnionPay, which are well-known in Asia, though probably not in the US. But most of the 30 Chinese brands are a long way from household names, with the list dominated by companies that sell to other businesses rather than directly to consumers. 
A widespread view in the West of substandard manufacturing quality is also holding back China. The “Made with China” global advertising campaign launched in 2009 by four Chinese industry groups, with the initial catch-line “Made in China, Made with the World”, signalled China’s determination to change the widespread perception that it is merely a mass producer of cheap and low-quality products. China has reason for optimism as Taiwan and South Korea are two Asian countries that have greatly enhanced the standing of their international brands over recent decades.
Today, Chinese companies are continuing to push into overseas markets, seeking to raise their profiles with consumers in ways that go beyond straight marketing and advertising. Home-appliance manufacturer Haier is a good example, with activities that include sponsoring the Science Museum in London and American basketball.
To better develop Chinese brands internationally, the experts say Chinese brands should be encouraged to undertake partnerships, alliances or joint ventures with companies outside China. By developing connections with popular international brands, Chinese companies gain access to research, manufacturing, distribution and marketing expertise that would not be available otherwise.
It’s important to remember that China has a long, rich history of craftsmanship and fine production familiar to many in the West. After all, porcelain was invented in China and years of development resulted in high-quality, artistic products that were so good that the terms “china” and “fine china” were used to describe delicate cups, saucers and plates.
I believe the number of Chinese brands reclaiming that kind of perception is growing every year and that American consumers’ awareness of Chinese brands is sure to increase.
 
For more columns in this series please see 
www.bangkokbank.com