BRANDING WORKSHOPS
Brand Trends - China Branding
By Chuck Pettis
Summaries of brand trends as reported by
leading publications covering the branding field.
leading publications covering the branding field.
About BrandSolutions Blogs
Every month I read many newspapers and magazines, focusing on those publications reporting trends in Branding. My goal is to identify branding trends in America through a study and analysis of the reporting of the best publications I have found that cover branding news. I also input my personal commentary and branding observations.
The publications I read and recommend are: AdWeek Magazine - http://www.adweek.com/aw/index.jsp
Advertising Age Magazine - http://www.adage.com
American Demographics - http://www.demographics.com
BrandWeek Magazine - http://www.brandweek.com/brandweek/index.jsp
Business Week - http://www.businessweek.com
Newsweek Magazine - http://www.msnbc.msn.com/id/3032542/site/newsweek
The New York Times - http://www.nytimes.com
The Seattle Times - http://seattletimes.nwsource.com/html/home/index.html
The Wall Street Journal - http://online.wsj.com/public/us
I hope you'll enjoy reading about china branding. I certainly enjoyed putting this "blog" together for you.
Every month I read many newspapers and magazines, focusing on those publications reporting trends in Branding. My goal is to identify branding trends in America through a study and analysis of the reporting of the best publications I have found that cover branding news. I also input my personal commentary and branding observations.
The publications I read and recommend are:
I hope you'll enjoy reading about china branding. I certainly enjoyed putting this "blog" together for you.
China Branding - August 2003 to February 2005
China has 20.5% of the world's population, more people than any other country in the world.
China is the world's fastest growing economy.
China is the world's fastest growing advertising market.
Over the past two years, I've been collecting articles on branding in China. Even though China is doing great in many areas of business, very little exporting of branded Chinese products outside of Asia is actually happening at the current time.
When will China begin to produce its own brands? My book, TechnoBrands, was translated into Chinese in 2000, and I'm still not seeing any branding action in China. In my conversations with a few potential Chinese clients, it is clear that the Chinese haven't "gotten" branding yet.
Chinese manufacturers still think in terms of just the product, best price, and maybe a nice logo. That's because China now is focused being a supplier to world (mainly the U.S) in order to build up its economic infrastructure. Down the road they will likely become more branding oriented as they see the value in branding and the payoff that branding brings in more control over their business, higher margins, and competitive advantage.
Plus, the Chinese don't seem ready to make the changes that branding requires in corporate structure and in gaining a consumer focus. It is much easier to reply to the RFP (request for proposal) from a small group of US clients than learn how to sell directly to US retail chains and consumers.
Still, there is little doubt that China will "get" branding just like they're quickly attained superstar status in manufacturing.
A quick note regarding the format of this blog. Read the following sections and commentaries as stand-alone stories.some short, some longer. For now, the structure of the blog begins with the name of the article, followed by a short summary of the relevant content of the article, interspersed with my personal commentary.
Many thanks to the editors and reporters that wrote all the great stories and articles.
I welcome your own comments, insights and wisdom. Email me at cpettis@brand.com
- Chuck Pettis
China is the world's fastest growing economy.
China is the world's fastest growing advertising market.
Over the past two years, I've been collecting articles on branding in China. Even though China is doing great in many areas of business, very little exporting of branded Chinese products outside of Asia is actually happening at the current time.
When will China begin to produce its own brands? My book, TechnoBrands, was translated into Chinese in 2000, and I'm still not seeing any branding action in China. In my conversations with a few potential Chinese clients, it is clear that the Chinese haven't "gotten" branding yet.
Chinese manufacturers still think in terms of just the product, best price, and maybe a nice logo. That's because China now is focused being a supplier to world (mainly the U.S) in order to build up its economic infrastructure. Down the road they will likely become more branding oriented as they see the value in branding and the payoff that branding brings in more control over their business, higher margins, and competitive advantage.
Plus, the Chinese don't seem ready to make the changes that branding requires in corporate structure and in gaining a consumer focus. It is much easier to reply to the RFP (request for proposal) from a small group of US clients than learn how to sell directly to US retail chains and consumers.
Still, there is little doubt that China will "get" branding just like they're quickly attained superstar status in manufacturing.
A quick note regarding the format of this blog. Read the following sections and commentaries as stand-alone stories.some short, some longer. For now, the structure of the blog begins with the name of the article, followed by a short summary of the relevant content of the article, interspersed with my personal commentary.
Many thanks to the editors and reporters that wrote all the great stories and articles.
I welcome your own comments, insights and wisdom. Email me at cpettis@brand.com
- Chuck Pettis
China has 20.5% of the world's people, but consumes 50.8% of the world's pork, 34.8% of the world's cigarettes, 32.8% of the world's rice, 32.7% of the world's cotton, 32.5% of the world's fish and 31.0% of the world's coal.
Made, and Branded, in China
The Wall Street Journal, August 22, 2003
The Wall Street Journal, August 22, 2003
Quick, can you name one Chinese branded product? I can't.
Haler is the largest household-appliance maker in China. They are said to have a "significant presence in the U.S." Have you heard of them?
Chinese manufacturers are beginning to market their own brands, but according to this article, the dollar volume of their own branded products exported to the US was is only $2.8 billion. In the three months ending January 28, 2005, Dell had revenue of $13.5 billion. Clearly, China has a long ways to go in becoming a company that exports its own brands.
Haler is the largest household-appliance maker in China. They are said to have a "significant presence in the U.S." Have you heard of them?
Chinese manufacturers are beginning to market their own brands, but according to this article, the dollar volume of their own branded products exported to the US was is only $2.8 billion. In the three months ending January 28, 2005, Dell had revenue of $13.5 billion. Clearly, China has a long ways to go in becoming a company that exports its own brands.
Chinese Brands Raise 'Cool' Quotient
The Wall Street Journal, April 28, 2004
The Wall Street Journal, April 28, 2004
Like young people all around the world, Chinese young people see Nike, Sony and Adidas as the coolest brands. Cool = best brands to buy and work for. 49% now also feel that China has its own cool brands: Haler (the largest household-appliance maker in China), Lenovo (China's leading PC maker), and Li-Ning sportswear. In 1998, no Chinese brands were seen as cool.
A basic requirement for any company marketing in the US is a ".com" web site. I tried to find corporate or product web sites for Haler, Lenova, and Li-Ning and was not successful.
A basic requirement for any company marketing in the US is a ".com" web site. I tried to find corporate or product web sites for Haler, Lenova, and Li-Ning and was not successful.
Can China Sell the World on Its Own Labels?
The Wall Street Journal, December 18, 2003
The Wall Street Journal, December 18, 2003
Galanz Group Ltd. of Guangdong province, China makes 30% of the world's microwaves sold under 80 different brands! TCL Corp. of China is one of the world's leading TV manufacturers, making many of the television sets sold by the big brands. Yet, only 10% of China's top 50 companies have developed plans to expand overseas
The Chinese branding problem is exacerbated because many Chinese brands and suffer internally from an image of being unreliable and of low quality. When BrandSolutions conducted market research in China for Quantum, a leading data storage company in the late 90s, we heard that US brands were perceived within China as having higher quality and prestige value than Chinese brands.
Chinese manufacturers are using Southeast Asia as a test market to build up their distribution and after-sales expertise, vital ingredients for branded products. For example, TCL is offering the longest warranty in the market and a fleet of motorcycle-dispatched repairmen that will be at a customer's house in 24 hours. If the repair can't be made immediately, the customer gets a loaner TV.
The Chinese branding problem is exacerbated because many Chinese brands and suffer internally from an image of being unreliable and of low quality. When BrandSolutions conducted market research in China for Quantum, a leading data storage company in the late 90s, we heard that US brands were perceived within China as having higher quality and prestige value than Chinese brands.
Chinese manufacturers are using Southeast Asia as a test market to build up their distribution and after-sales expertise, vital ingredients for branded products. For example, TCL is offering the longest warranty in the market and a fleet of motorcycle-dispatched repairmen that will be at a customer's house in 24 hours. If the repair can't be made immediately, the customer gets a loaner TV.
After Years Behind the Scenes, China is Playing Brand-New Game
The Wall Street Journal, December 26, 2003
The Wall Street Journal, December 26, 2003
After years of manufacturing for US brands, a few Chinese companies are buying the rights to famous trademarks. Techtronic Industries bought Dirt Devil (vacuum cleaners). This purchase led them to do consumer research, rethink their image and price point, and learn how to cut deals with big box stores like Home Depot.
Two Chinas
Advertising Age, August 16, 2004
Advertising Age, August 16, 2004
China is a land of contrasts, from Starbucks to cheap roadside dumpling stands, from chauffer-driven BMWs to row up on row of bicycle repair shops. Rich and poor. Literate and illiterate. Urban and rural. I'll never forget looking out the window in my Beijing hotel in the late 90s and seeing oxen-pulled carts, hundreds of bicycles, and old trucks and cars. I could only see a few blocks because of the dust and haze.
China is the world's fastest growing economy. In the US, we tend to think of all the products we see that have been imported from China. We don't see the 1.2 billion Chinese consumers that have made China the sixth largest advertising market in the world, even though half the population can barely afford rice for dinner. As I was driven from Beijing in a chauffer-driven car to see the Great Wall of China at top speed, we passed tent homes by the side of the road with the family selling fruit in neat stacks.
China is not homogeneous in terms of its markets, language and culture like the US is. It has two dozen separate decentralized markets, each with different cultures, languages, food, etc.
Top ad-spending sectors:
China is the world's fastest growing economy. In the US, we tend to think of all the products we see that have been imported from China. We don't see the 1.2 billion Chinese consumers that have made China the sixth largest advertising market in the world, even though half the population can barely afford rice for dinner. As I was driven from Beijing in a chauffer-driven car to see the Great Wall of China at top speed, we passed tent homes by the side of the road with the family selling fruit in neat stacks.
China is not homogeneous in terms of its markets, language and culture like the US is. It has two dozen separate decentralized markets, each with different cultures, languages, food, etc.
Top ad-spending sectors:
- Pharmaceuticals.
- Toiletries.
- Retail & services.
| Ad Do's: | Ad Dont's: |
| Focus on family values | Insult competitors |
| Be sincere and polite | Use the number "four" - it symbolizes death |
| Understand the local culture | Make "We're number one" claims |
Chinese ads resemble '50s era, "but in color"
The Seattle Times, February 14, 2005
The Seattle Times, February 14, 2005
Advertising is new to China and "the last great virgin brand-building market." The name of the ad game in China, the world's fastest growing ad market, is "keep it simple." Here are some do's and don'ts on advertising in China:
| Do focus on: | Don't focus on: |
| Groups of people | Groups of people |
| Practical benefits | Rebellion |
| Bright, happy | Anti-establishment |
China Cracks Down on Commercials
The Wall Street Journal, February 19, 2004
The Wall Street Journal, February 19, 2004
Advertisers want to push social limits to get attention, but in China viewer complaints have banned ads for feminine-hygiene pads and hemorrhoid mediation during meal times. Beer ads are limited to the 7:00-9:00 pm timeframe. Hotlines have been set up for viewers to report rule breakers.
Chinese Charm School
The Wall Street Journal, January 13, 2004
The Wall Street Journal, January 13, 2004
Chinese and Western cultures are very different, as Westerners who go to China quickly learn. Now Chinese businessmen, who want to sell in the US, need to learn and understand Western culture, manners and email protocol. They need to learn how to build a relationship, not just quote prices. Alibaba.com is said to specialize in making the introductions and providing the know-how on everything from using the right language for the shipping address to the right electrical plug for the outlet. They teach table manners, how to write business letters, and the importance of replying quickly to emails. I wasn't able to find a link to this service on the Alibaba.com English site.
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Related Web sites:
http://www.silkrc.com/intro.html