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How Can We Help State-Owned Brands Go Global?

2013/9/26 14:27:00 27

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2%~7% consumers in Europe and America can take the initiative to recall Chinese brands, which is in sharp contrast to the Fortune 500 of China's top 70 companies.

What factors prevent Chinese companies from building global brands?

we believe that in the next ten years, Chinese brands will become more and more globalized and occupy a place in the western world.

This belief is based on two basic observations.

First of all, China's leading enterprises already have world-class manufacturing capability; secondly, China's mode of low cost labor force is being broken.

It has become the ultimate goal of many Chinese enterprises to pform products into globally recognized brands through innovation and marketing support.

there are eight ways to help Chinese brands go global.

Asian Turtle route: quality and brand pition /p >

the most common strategy for Chinese enterprises trying to establish a foothold in developed markets is to adopt the "Asian Turtle route".

In 60s and 70s twentieth Century, Japanese companies such as TOYOTA and Honda took the lead in adopting this strategy. Korean companies such as Samsung and Hyundai followed closely. This method is "the mother of all routes".

First, enter the western market with a decent but very low cost product, then build brand recognition and scale economy, and gradually improve the quality and price over time.

Finally, when these companies are ready to enter the high-end market, they usually introduce an independent name (such as TOYOTA's Lexus and Honda's eulogize).

Haier, Southern China tire rubber and Pearl River Piano have proved that this strategy is also effective for Chinese enterprises.

enterprise consumer route: using B2B strength /p >

the second way is to start in the West as a B2B company, and establish consumer brand identification (B2C) over time.

B2B in developed countries will not adopt this strategy because it is too risky.

But because many Chinese companies are the original equipment manufacturers, this change may be necessary.

Managers can build a B2B brand, build a global expansion platform, cultivate popularity (even narrower audiences), attract better talents to the company.

When companies are ready to start marketing to consumers (often on the adjacent product category), they will have more dependable foundations.

take HUAWEI (Huawei) as an example.

It has grown into the world's second largest telecommunications equipment manufacturer after Ericsson, Sweden, and is now entering the consumer market, selling cheap smart phone devices to low-income consumers from Nigeria to the United States.

By the end of 2012, HUAWEI has become the third largest smartphone manufacturer in the world after Samsung and apple.

ZTE, cooker maker ASD (ASD) and appliance manufacturer Galanz (Galanz) are also examples of this.

the route of overseas expatriates: following the migration to the world

Chinese brands can also "live abroad as beachhead" or follow the footsteps of all ethnic Chinese living in developed countries.

The banking giant HSBC (HSBC) pioneered this route.

The same is true of Mandarin Oriental Hotel (Mandarin Oriental).

strong > brand acquisition route: acquisition of global brands /p >

sometimes the easiest way to enter the western market is to acquire western brands.

The acquired brand can be converted into Chinese brand, or the independence of the brand can be maintained.

The former is Lenovo's acquisition of IBM's personal computer business; the latter such as Geely's acquisition of Volvo and Guangming Food's purchase of Vita Mai.

In view of the tight operation of multinational brands in many Western markets, Chinese brands adopted this method at that time.

strong > mass propaganda route: overcome negative associations related to the country of origin /p >

use various strategies to overcome the shortcomings associated with China's country of origin.

One strategy is to use a name that sounds like a foreign brand.

Who can guess a target= "_blank" href= "http://www.91se91.com/" > shoes < /a > brand Stella Luna from China? China's footwear manufacturer OSPOP company challenges foreign consumers' negative stereotypes of Chinese products.

In addition, the emphasis on aesthetics is also helpful: Beiqi has hired Leonardo Fioravanti Leonardo Fioravanti (Ferrari Daytona) as the chief a target= _blank href= "http://www.91se91.com/" designer "/a", while Brilliance China automobile has attracted from Italy famous design company, Benny {page_break} "Daytona".

Dimitri Wisdomini of Dimitri (Vicedomini).

China's first menswear luxury brand (Sorgere) combines Chinese aesthetics with European manufacturing quality.

Investing heavily in marketing is also helpful, but Lining's example shows that it has a limited frontal attack capability against western brands such as Nike and Adidas.

Maybe it would be better to spend money on regional marketing. We saw Chengdu's city advertisements in magazines and billboards in the US and Europe.

cultural resources route: positive cultural heritage

the "cultural resources" route makes full use of Chinese cultural connotations (real or imagined) to create China's advantage as a global country of origin.

China's a target= "_blank" href= "http://www.91se91.com/" > clothing < /a > Company Shanghai (Shanghai Tang) has effectively utilized this cultural advantage and created a luxury brand with deep cultural connotation.

Shanghai has followed the finest tailoring tradition, with detailed attention and exquisite workmanship, such as Chinese silk, which is very sophisticated and has a typical Chinese style.

These related cultural connotations are believable.

After all, Shanghai was once known as the "Oriental Paris".

This route provides great potential for many smaller companies.

The cosmetics brand Herborist (Herborist) of Jahwa, Shanghai, absorbed two traditional balance theories from ancestors, and applied plant knowledge in restoring balance, but it did not stick to ancient culture.

ZUCZUG is also influenced and inspired by Chinese culture, such as traditional food market, young people who are addicted to Internet and technology.

Natural Resource route: four steps to build commodity brand /p >

natural resources can also become brands, representing quality assurance and providing emotional satisfaction.

Usually, it is realized by linking with the state or by naming the commodity itself.

One example is the De Beers, which launched the diamond brand ForevermarkTM eternal imprint in 2008.

The uniqueness of these diamonds lies in their traceability and reliable commitment.

Why does Columbia brand coffee sell at a premium? Columbia has other agricultural products that are more famous than coffee.

And why are there no Chinese brands of rice, silk or tea sold in the global market? After all, these products are "created" (Invented) in China.

China's natural resources are waiting to be built into brands.

the route of national key enterprises: using the strong support of the state

The last way is to use the power of the state to advocate and grant subsidies or preferential policies, so as to achieve domestic expansion and then achieve international expansion. P

There are many state-owned enterprises in China, from China commercial fly to China Mobile, are building strong brands in their own way.

In many cases, this approach does not produce successful brands.

The experience of airlines in Dubai (Arabia United Arab Emirates) shows how the country can execute this route effectively, while Proton in Malaysia teaches us what should not be done.

P >. Patience is also critical.

The establishment of global brands is a gradual process, which is more suitable for managers in China.

We are optimistic, because a country with such a prominent economic position has yet to develop a strong brand, which is unique in history.