Posts Tagged ‘China Going Global’

CTP Video: Can Chinese Companies Build Brand in the USA?

Friday, May 14th, 2010

Made in China FlagQuick quiz: name a single mainland Chinese company that has successfully built brand equity in the U.S. market sans acquisition?  Lenovo doesn’t count as most of its brand value derives from the purchase of IBM’s mobile computing group.  Haier?  No, they don’t make the grade either.  Haier sells a lot of product in the US but mostly as a low-cost generic white label manufacturer for big-box stores like Wal Mart and Target.  The only people who know the brand Haier are those who have lived in China.  Americans, on the other hand, just see a $50 refrigerator or $10 toaster without paying any attention to the manufacturer.  And why should they?  Haier does not advertise widely in the US market or make any noticeable effort to establish itself beyond its generic, low-cost origins.   That will change.  It has to.  Many Chinese companies like Baidu, Geely and BYD recognize that their home markets will eventually become saturated and if they want to grow, they will have to seek new markets overseas.  It won’t be easy though, as they will no longer have the benefit of protection and support from the central government in Beijing.  Instead, these Chinese companies will be forced to compete in manner that remains largely unfamiliar to most Chinese executives.

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