International Challenges for Chinese Brands (comments on external marketing blog)

Reading an external marketing blog about how Chinese brands can succeed internationally enables me to realize what difficulties and challenges Chinese brands facing when they try to target the international market and the underlying reason why brands so popular in the domestic market can’t get the same attention form market abroad.

The primary reason is that most Chinese brands that try to enter the international market are those who already succeed in the domestic market and have a brand position targeting medium or capital class, however, internationally, China has such a famous reputation for cheap labour and low-end products, which blemishes the brand image of those companies even before they tack any actions. As a result, instead of using their own brands, Chinese companies prefer to buy overseas companies and use their brand names to sell the products they want or as a mean of introducing their own brands as alignment. As the blogger mentions, one successful example is Lenovo who introduces their products and even brands in the new market through buying an already well-known brand in North American market, IBM. Besides, due to the lack of accountability  when selling edgy or luxury goods, Chinese companies are enforced to invest in technology or natural resources company rather than brands involving judgements of consumers’ tastes.

Luckily, there are a few delightful changes brought by some chinese brands recently : Stella International, a manufacturer for Prada has started selling luxury goods under its own Stella Luna brand in ‘its first overseas boutique on Boulevard Street  in Paris’. Another brand, Bosideng, also opened its  site on South Moulton Street in London. In China, Bosideng’s business is focusing on selling down jackets, however, in London, the company make some specific and smart changes with targeting ‘fashionable young males with 400-pound-sterling suits’. Both brands realize that they need to get rid of the ordinary cheap and low-end brand image by choosing new target and  proper store location.

Therefore, one important thing Chinese brand need to work on for entering international market is to reposition their brand to replace the impression of cheap “made in China” products, which actually  is a long-term accumulated image. This strategy is supposed to need a huge cost and  a lot marketing effort, but it will change consumer’s preferences in the international market eventually.

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