By Bridget Kow, Projects Executive
Does any of these brands sound familiar to you? If yes, those companies are doing something right with their marketing. If no, let me introduce you to China’s emerging brands.
Haier is a china-based household appliance manufacturer, its the world’s 4th largest white goods manufacturer. With revenues of $17.1 Billion in 2008. Impressive isn’t it? Compare to Electrolux with Haier, which will consumers trust better?
Hua Wei is China largest networking and telecommunications equipment supplier and it current supplies networking equipment to local telcos like Singtel , M1.
Li Ning is started by renowned and retired china sportmen,Li Ning a Olympic gold medal winner. It is top few sports brands in China, after Nike and adidas.
My question is can these brand move beyond national shores and enter international markets. Answer is Yes, with internet and globalization has allowed brands to enter into new markets. However, sterotypes still exist , when we talk about Japanese products like Sony or Sanyo, many consumers will associate that with higher price but quality products. However, China has been forced into the sterotype of having cheap but of inferior goods. John Pomfret of the Washington Post has clearly pointed out one of China’s failure to create renowned brands. Even though China is actively working to move away from its sterotype and move into quality manufacturing. The overall image of “Made in China” negatively affected it corporate brand strength.
In order for China Brands to start growing and flourishing in other markets, it has to re-brand its country’s image. Move away from being synonymous with “cheap”. A country has to brand its own image, as produces and brands coming out from that will be directly associated with the brand of the country. Take for example, German brands regardless of industry exude precision, French brands are associated with class and style.
Gary Shapiro, President & CEO of the Consumer Electronics Association suggests that, “While the Chinese have purchased well-known brands, like RCA and IBM personal computers, they did not recognize that the acquisition cost is just the beginning of owning a brand. A brand is like a child, which must be schooled and disciplined and taught to adjust to change. A brand must be built through quality and through PR and marketing including advertising, media, sponsorships and events.”
China Brands has to actively build brand awareness, the lack of marketing experiences hinders that. China companies need to be organizationally readily for branding projects. It mean making their brands relevant and compelling to consumers outside of China. Associations related to “cheap” and “poor quality” can not be changed overnight and will take long-term, concerted communications campaigns to dispel negative associations and convince consumers. This will require that Chinese brands find competitive advantages beyond price. Several global brands have migrated from low price to “a good value for the money”.
Once Chinese products and services can inject emotion into their brands, sustain investment, and implement brand management best practices, they will take their place among the world’s leading brands.
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