The New Normal: Global brands lose advantage in China - report

[TaiShang]

Global brands lose advantage in China: report
Xinhua, June 11, 2016


For the first time, local Chinese brands are equal to international brands in a measurement index -- meaning they are now in many ways perceived as equally competitive, new research found.

According to advertising giant WPP and its market research unit Millward Brown, both multinationals and local Chinese brands score 100 on the metric of Brand Power -- the BrandZ measurement of brand equity.

But Chinese brands have the advantage of upward momentum, while international brands are weakening, it said. In 2010, multinationals scored 115, while Chinese brands scored only 89.

A decade ago, international brands were synonymous with quality in the minds of certain Chinese consumers. They offered status and bling, while local brands could only aspire to being "good enough".

Uncertainty consumers in China once felt toward domestic products is gone. Local brands are challenging and beating global competition and consumers increasingly believe they are comparable, according to Millward Brown.

The total value of BrandZ 2016 top 100 most valuable Chinese brands rose 13 percent in 2015, despite the economic slowdown, as consumers remain confident in their spending and optimistic about living a better life, it said.

Millward Brown said that Chinese brands are doing a better job than their global rivals, in providing quality and value and leveraging the right channels to make its products available to Chinese consumers.

As the information explosion in China makes people more sophisticated, they demand more choice as well as better quality and value. This presents an opportunity for new, niche brands to come onto the market -- and again, local brands are taking the lead, it said.

Chinese brands are also doing better in catching the speed of the mobile wave. China is the most dynamic market in the world in terms of mobile use. The use of cash and credit cards is already perceived as outdated.

In addition, Chinese brands invest more heavily in media than their international counterparts. The top 10 investors on the TV channel CCTV, for example, are all local brands apart from Coca-Cola.

Chinese companies are learning how to develop unique, innovative brands. If international brands can't speed up and change their approach they risk missing the wave, and being replaced, it added.

@ahojunk , @cirr , @AndrewJin , @Jlaw, @Tiqiu et al.

 

[ahojunk]

@TaiShang

Chinese consumers having confidence in their own brands and products ===> will boost the demand side, allowing China to rely less on exports. Hence, economic uncertainty in other parts of the world will have less impact on China's economic growth.

I am not surprise. A few years ago, iPhone and Samsung were the preferred smartphone brands. Today, it's Huawei, iPhone, Xiaomi, Oppo, etc. IIRC, recently iPhone has lost 26% market share in China. Samsung has dropped off the list.

When it comes to big products such as HSR, China is second to none for quality and value. Now, the rest of the world is scrambling to catch up to the published Chinese HSR standards. Even if they do, they still can't compete with the price.

 

[TaiShang]

@TaiShang

Chinese consumers having confidence in their own brands and products ===> will boost the demand side, allowing China to rely less on exports. Hence, uncertainty in other parts of the world will have less impact to China's economic growth.

I am not surprise. A few years ago, iPhone and Samsung were the preferred smartphone brands. Today, it's Huawei, iPhone, Xiaomi, Oppo, etc. However, IIRC, iPhone has lost 26% market share in China. Samsung has dropped off the list.

When it comes to big products such as HSR, China is second to none for quality and value. Now, the rest of the world is scrambling to catch up to the published Chinese HSR standards. Even if they do, they still can't compete for price.

Yes, anytime I am in the Mainland, I observe the change of attitude. Domestic brand royalty will boost consumption and also, indirectly, exports, by infusing national companies with the required funds for greater R&D spending and better product quality.

On top of everything, greater confidence of one's own. And it is not only about electronics, the same goes with from cars to household items.

New generation grows up in an environment in which domestic brands are just a normal aspect of life while foreign means very little to them, other than providing just extra option.

This is to ensure China's rise to, first, middle class status very soon, and then moderately advanced status.

I just can't help posting the same car since I really liked this one, LOL.

 

[cirr]

This is bound to happen.

I for one only buy Chinese brands, except for cars which have to be German.

 

[Gijoe]

This is bound to happen.

I for one only buy Chinese brands, except for cars which have to be German.

Yup German cars is best choice, lucky Range Rover or Land Rover make by English people. If it was built by Indian probably this company go bankrupt for long time.

 

[AndrewJin]

This is bound to happen.

I for one only buy Chinese brands, except for cars which have to be German.

Chinese products overseas used to be all for western companies.
Now more and more Chinese indigenous brands can be seen in western markets, from DJI drone, Huawei phone, Lenovo laptops to Hisense TV.
But there is still a long journey ahead, by working harder, by spending more in R&D.

 

[Jlaw]

Yes, anytime I am in the Mainland, I observe the change of attitude. Domestic brand royalty will boost consumption and also, indirectly, exports, by infusing national companies with the required funds for greater R&D spending and better product quality.

On top of everything, greater confidence of one's own. And it is not only about electronics, the same goes with from cars to household items.

New generation grows up in an environment in which domestic brands are just a normal aspect of life while foreign means very little to them, other than providing just extra option.

This is to ensure China's rise to, first, middle class status very soon, and then moderately advanced status.

I just can't help posting the same car since I really liked this one, LOL.



View attachment 309879

View attachment 309880

Haval are sold in Australia.

Chinese products overseas used to be all for western companies.
Now more and more Chinese indigenous brands can be seen in western markets, from DJI drone, Huawei phone, Lenovo laptops to Hisense TV.
But there is still a long journey ahead, by working harder, by spending more in R&D.

and through marketing. Changing people's perception and delivering what is promised by the product.

 

[Daniel808]

Chinese Smartphone Brands really doing Good Job in Indonesian Market.
Xiaomi, Lenovo, Huawei, and Oppo Smartphones have many Fans in here

Yesterday, me and my friends just bought Xiaomi Mi 5 pro
Really Love it


Xiaomi Mi 5 Smartphone

 

[TaiShang]

Changing people's perception and delivering what is promised by the product.

Yes, perceptions are important. After reaching a certain level of technology sophistication and service quality, China's brands should not shy away from exposing their country of origin. This will also help in terms of perception making.

 

[TaiShang]

More Chinese companies ascend global arena
Xinhua, June 29, 2016

Rapidly growing companies in various sectors in China and other emerging economies are ascending the international arena, according to a report from Boston Consulting Group.

The report released on Monday lists 100 companies that are believed to be the "global challengers," which are the ever-developing corporations edging into the global market with outstanding performance. Of the total, 28, or over one fourth, come from China.

"Chinese companies are the largest block on this list, so by the sheer size of the position, they will have more impact than anyone else," according to Dinesh Khanna, a coauthor and leader of BCG' s Global Advantage practice

Among the listed Chinese companies are Alibaba Group Holding Ltd., Citic Group, Dalian Wanda Group Co., Xiaomi Corp. and China Eastern Airlines Corp.

"We believe these companies represent the next wave of economic growth, " Khanna said.

Companies from emerging economies have occupied over 40 percent of the global market share in industries ranging from household appliances to construction and real estate, the report showed.

"Ten years ago, the global challenger list was dominated by industrial goods and resources companies competing on cost. Today' s many challengers are appealing to the hopes and dreams of middle-class consumers in emerging markets and elsewhere," said Michael Meyer, a coauthor and partner based in Singapore.

Despite economic turbulence in different countries, the revenue and profits of the 100 companies have mainly kept steady. Overall, they have quadrupled their overseas revenue to 944 billion US dollars from 2005 to 2014.

These companies, in their developing process, have also embarked on the purchase of foreign firms in a bid to expand scale, explore new markets or pursue technical enhancement, the report noted.

Founded in 1963, BCG is the world's leading advisor on business strategy with 85 offices in 48 countries.

 

[rott]

This is bound to happen.

I for one only buy Chinese brands, except for cars which have to be German.

Not good enough

 

[TaiShang]

China's SOEs speed up going abroad
Xinhua, July 1, 2016

China's state-owned enterprises (SOEs) are accelerating the pace in developing overseas businesses, according to a report delivered to the country's top legislature Thursday.

SOEs, especially centrally-administered SOEs, have become the major force of China ready to compete on an international scale, according to the report, which was delivered by Xiao Yaqing, head of the State-Owned Assets Supervision and Administration Commission of the State Council (SASAC).

Overseas investment of China's centrally-administered SOEs accounts for 60 percent of the country's total non-financial foreign direct investment, and the turnover of foreign contracted projects accounted for 60 percent of the total turnover of foreign contracted projects of China, Xiao said.

SOEs' overseas businesses have expanded from exploitation of energy and mineral products to high-speed railways, nuclear power plants and ultra high voltage (UHV) electricity transmission, according to the report submitted to the National People's Congress Standing Committee during its bi-monthly session.

Xiao said SOEs achieved some major breakthroughs in research and development, including the fourth-generation mobile communication, UHV transmission, high-speed railways, deep-sea exploration, and others.

He said the country will deepen reform in this sector and improve the quality and efficiency of SOEs.