Chinese Brands going global.

When I ask you what Chinese brands you know, what is your answer?

I did this to several classmates. Most Americans could not say one. Few can say Lenovo or Haier.

Isn't it sad to Chinese companies? China exports more than 60% of World total yearly consumption of shoes, microwave ovens, home aircons, PCs......When you go to Walmart, Macy's or Bestbuys, "Made in China" products should be much more than products made in any other single country. No doubt that China is the world factory. But, none of Chinese brands are well known. Isn't it weird?

It is a very serious problem for Chinese companies. Since most of their business are under OEM for big brands right now, they make really limited margin in the whole supply chain. Without enough profit, they have very limited resource for innovation, quality improvement, production process upgrade and worker's welfare ect. What they can do are endless cost reduction driven by outsourcing, knockoff caused by lack of innovation, poor worker's welfare and price war. This is a very unhealthy, vicious cycle.

Most Chinese Companies realized the problem. They are trying to make some changes. Beside OEM business, some big Chinese companies license foreign existing brands like Admiral, Polaroid or even Whirlpool for some particular brands. The difference from OEM is Chinese companies have absolute control in pricing, choosing sales channels, making marketing campaign, providing service and so on. 

The next stage is to build up their own brands. At this stage, there are still several challenges stopping that move.

1, Globalization for most Chinese companies is still at early stage-OEM. It haven't developed to stage of overseas production, the stage of overseas merchandise management and stage of real multinational operation. At this stage, it is not that urgent to develop own brands.

2, no systematic supporting for marketing. Brands building are not only based on megabucks invested in marketing campaign but also based on the whole package companies can offer to consumers including quality products, excellent after sale service, fast logistic and so on.

3, Lack of professional markers and global leaders, which cause lack of clear global marketing strategy. 

Anyway, there is still a long way for Chinese to build their brands globally.