Chinese consumers opting for local brands
Updated: 2008-03-28 09:48
David A. Aaker, vice-president of Prophet Brand Strategy, said Chinese brands are managing to hold their own as competition intensifies with foreign products.
"They (Chinese brands) have huge potential in the world market," he said.
Many local brands like Lenovo, Haier and Tsingdao Beer have also gained a foothold on the international market, according to the survey.
All of these companies have strong brand awareness, take a long-term approach and have developed comprehensive marketing strategies.
Lenovo's acquisition of IBM's PC arm made it not only the world's fourth largest PC maker but also helped it grow from a local brand into an international one.
Haier has meanwhile been setting up overseas subsidiaries and manufacturing facilities as it tries to expand its presence on the international scene.
And Tsingdao Beer is using its local advantage to buy small domestic breweries and overhaul its brand to fend off competition from foreign brewers.
Lenovo, Haier and Tsingdao are all Beijing Olympic sponsors and are trying to use the event as a springboard into the global market.
"Brand-building is a long-term strategy for any company, so consistency and persistence is paramount," Zhang Shuting, vice-president of the Communication University of China's advertising school, said.
Sources from the three companies said they have mapped out post-Games branding schemes in addition to Olympic- period marketing.
While some businesses shy away from investing in brand-building, Liu said it adds value in the long run and can help companies gain market share.
"Advertising is just one of the many tools that create brands. But stricter quality control, improved after-sales service, environmental protection and community involvement can also contribute," he said.
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