Firms must create China national brand
Print Edition
CHINA’S companies must not only develop their own brands but also create a Chinese national brand in order to fully win over foreign markets, according to a global market research firm.
The key factor for the companies is to create a brand image for Chinese products as a whole, beyond price competition, over the long term, Rosie Hawkins, global head of brand and communication at international market researcher TNS, said in Shanghai yesterday.
She said that while China was able to create strong brand differentiation in developing countries in South America and Africa, it was more difficult in the already saturated developed markets.
“When you talk to people about Germany, they think German engineering, when you think about Scandinavia they talk about design ethics, with France the association is luxury. China needs its own brand China to be developed,” Hawkins said.
She, however, cautioned that there is “a danger when you think about China that all you think about is price. We have to move away from that.”
Hawkins said that for Chinese companies expanding overseas and foreign ones growing in China, they still underestimated differences in markets and consumers, but the situation was improving.
“But some brands are taking more time and energy to get to know the Chinese consumer and how to adapt their brand to the local consumer,” she said. “Brands like KFC have done a lot with their menu and food choices to make sure they are appealing to a wider range of people.”
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