Branding is become a hot topic in mainland China. Everyone’s asking: How can Chinese companies turn their brands into global brands? What does it take? When will we see the first few global brands coming out of the P.R.C.? And so on. Well, there are already Lenovo and Haier, and if you define a brand a bit more broadly, you can count in the Beijing Olympics and Shanghai, the city, as well. But surely, the Chinese government and Chinese businesses have larger aspirations. So what’s holding them back? What are the constraints?
These were the issues debated at the inaugural Shanghai branding conference held today at Jiatong University, as part of the Center on Global Brand Leadership network that I have created over the last few years. The consensus: Chinese businesses know all about branding. What’s holding them back is not a lack of know-how, but financial and organizational issues. Plus, a huge local market--over a billion consumers in mainland China--that still offers significant growth without facing the challenges of entering new markets. By comparison, Taiwan (a much smaller local market) is further along in pursuing global branding. (Same reason that the Dutch speak better English than the Germans.)
However, as I witnessed at the Shanghai Auto Show (see picture above), certain Chinese industries – like automobiles – are fully geared toward international expansion. Several Chinese car manufacturers are creating products for overseas markets, and some have already shown their brands at international car shows as well.
(Incidentally, the conference was a wild success, with an array of prominent speakers, some of whom appeared on Shanghai TV's hot Brainstorm show, and attended by hundreds of invited guests; I’ll post a link soon to our official conference report.)
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