The globalisation of Chinese brands

Abstract

China has taken over Japan over the last decade to become the largest manufacturer and exporter of more than one hundred consumer products. However, China, as “the world factory”, has yet to create a single brand that is recognised worldwide. The recent acquisition of IBM’s PC business by China’s Lenovo may signal the beginning of the globalisation of Chinese brands. This paper considers the current brand revolution in China, focusing on the unique challenge faced by major Chinese enterprises: how to sustain their brands in domestic competition and how to expand in the global markets. The paper is divided into two parts: it first gives a brief review of the development of marketing and branding in China since the start of economic reform in 1978, and then discusses current issues in the domestic market: changes from price competition to brand competition, as well as diversification and the role of the government. The second part examines the routes to internationalisation taken by some of China’s biggest brands; differences in their entry modes and branding strategies are analysed.