China is in the middle of an economic revolution. The rapidly growth of the economy has involved an increase of the middle class and the rising disposable incomes. Because of that, Chinese society has changed and now they have largest purchasing necessities.
Chinese brands are gaining popularity in China and around the world.
Due to the internet penetration and the growing popularity of online marketplace platforms, Chinese society has the chance to buy foreign brands and products. The purchasing behavior of Chinese consumers has changed and now they prefer international brands instead local brands. But, what is the reason?
They believe that foreign products have better quality than the Chinese items. Also their desire for well-known brands is driven due to their necessity to show their social and economic status through foreign brands.
Another reason is that Chinese brands are still often perceived as being low-quality copycat versions of foreign products. That’s why companies must to add more value and beef up their branding.
Chinese brands are looking for expand their business globally. Nonetheless, those brands face a hard reality: No matter how successful they are in China because few foreign consumers have any idea about who they are.
The reality is that Chinese consumers have become more discerning and they want to recognize and be recognized by brands. That is the reason why some brands are starting to change dramatically their strategy and now they are trying to make their brand unique and express the quality of their products in order to create authentic “brand experiences”.
In a short period of time, China will overtake the U.S.A. as the world’s biggest economy and Chinese brands will have to compete overseas with western brands.
In 2014, a number of 95 Chinese companies have been including on the Fortune Global 500 list of the biggest companies by revenue. However, at the moment only 6 percent of Americans are able to name a Chinese brand.
There are some Chinese brands that are very successful in China and worldwide due its quality and innovative products and services.
Lenovo is the largest computer company in the world with 20% market share of the PC industry. Recently, the company has started to sell smartphones globally and today with its mobiles devices reaches about 45 percent of the world’s population and even sells more smartphones and tablets than computers.
Tsingtao Brewery Company Limited, one of the oldest beer brands in China, was founded in 1903. This brand is the second largest beer maker in China and the most successful Chinese brand in the U.S.
Tsingtao is exported to more than 80 countries and is one of the few branded products from China that is recognized over the world.
The brand’s goal is to become an international company with a global brand exposure.
Air China is one of the major airlines of China which offers over 6,000 weekly services on 243 routes throughout Asia, North America, the Middle East, Europe, and Australia. However, Air China has experienced a 32.41% reduction of its net profit in 2013.
China Mobile Ltd, is the largest telecom supplier in the world which provides mobile voice, multimedia and internet services via its nationwide mobile telecommunications network . The company has 801 million total wireless customers which mean the 62.5% of China’s 1.28 billion wireless users. Nonetheless, China mobile has experienced a profit decline due its investing in mobile network projects.
Shuanghui is the largest meat processing company in China which offers high quality animal protein products around the world.
In 2013, its net profit has increased 33.7% representing a net profit of $633.68 million.
Huawei is a Chinese telecommunications and network equipment provider which has increased their profits in a 34.4% during 2013. That means that in 2013, Huawei revenues reached $3.38 billion.
The Chinese smartphone maker has become in one of the world’s major mobile devices vendors with over 65% percent of its revenues coming from outside of China. Despite its low brand awareness around the world, Huawei has expanded its business to the worldwide.
These brands are already successful in China and in the world, however they have to still improving their image and adapt their strategies to the outbound markets in order to be able to compete to foreign brands.
If you are interest to adapt your brand to the Chinese market, contact us!
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