Thought Leadership

International - Winning mindshare in the world's most rapidly evolving tech market

Building Brands in China

Branding and reputation have become hot topics in China since the turn of the new century. If you visit China’s most popular web bookstore and search for Chinese books with a brand-management focus, you’ll find nearly 1,000 that fit the category; more than 350 include the word “brand” in the title. Fifty percent were written in Chinese. A staggering ninety percent were published during or after the year 2000.

The explosion in popularity of these texts mirrors the flourish of economic activity that followed China’s 2001 entry into the WTO. With that burst of market shaping energy, came a fascination with Western-style brands among Chinese consumers and naturally a focus from vendors on ways to build brand value in China.

While the Chinese market may have appeared a fertile landscape for organizations that already possessed a strong brand foothold in Asia Pacific, the truth is that China’s meteoric rise to economic significance has created a market in which winning customer loyalty is no walk in the park. China has, after all, achieved economically in 20 years what many other countries took 50 years to accomplish.

As a result, China’s economic miracle is far from evenly distributed and reputation management is far from simple. For example, China has one of the lowest urban populations of any major economy. Sixty percent of its population still live in rural areas where access to education and technology remains limited.

Companies working to build their brands in China, therefore, need to be sensitive to its complex and evolving socioeconomic landscape. Messaging, for example, should consider the Chinese audience’s strong sense of loyalty and nationalism, and at the same time, recognize that the same audience admires and embraces famous brands from outside of China.

Some tips for developing brand and reputation management strategies with China-specific relevancy include:

  • Localize messaging. Abstract messages commonly used in the West may not be applicable in China. Simpler, direct messaging is more likely to maintain the interest of Chinese audiences.
  • Emphasize brand value. Price wars are extremely common in China, particularly in the IT and consumer markets. New market entrants should emphasize quality in their messaging and business strategy to differentiate themselves from local incumbents.
  • Demonstrate goodwill. Highlight how China is a key provider of resources as well as revenues. Setting up R&D centers in China, for example, helps propagate the country’s societal and technological advances, demonstrates you are giving back to Chinese society and helps establish goodwill that is key to winning over consumers and increasing brand awareness.
  • Build high-level government relationships. The Chinese government continues to exert influence over the success of businesses in China. An effective government relations program is key to cutting through the red tape that remains prominent in the country.
  • Build analyst relationships. Like their counterparts in the West, Chinese reporters increasingly refer to analysts’ reports for background knowledge and unbiased insight.
  • Build press relationships with industry, trade and daily publications. The Chinese media have matured beyond being direct conduits for company news and are increasingly discerning and analytical about their content. Media relations programs are growing in importance and sophistication.
  • Utilize popular Chinese web portals. Popular news portals such as www.sina.com and www.sohu.com serve as “go-to” destinations for news-hungry reporters. Much of their content is only lightly researched, making the portals hot-beds of news stories and potentially damaging gossip. Companies should utilize these portals to seed news stories and mitigate damaging rumors.
  • Engage and partner with influencers. Engaging influential scholars and professors from famous research centers and universities, as well as Chinese celebrity icons helps to build awareness and preference for your brand. Professional sports figures, local Olympic gold medalists and stars from the entertainment industry are increasingly being used in PR campaigns that capture positive attention, especially within the IT, electronics and consumer markets.

One final note of caution: Building a brand in China may prove to be less challenging than maintaining your brand’s integrity and value in the long term. The Chinese market is crowded with vendors whose marketing messages are more substantial than their organization. It is fair to say that there exists a little of the cowboy spirit at this century’s new frontier. Many vendors lack solid technology, product quality, sales integrity, channel and logistics and the ability to follow through on customer service.

The key for vendors seeking to stand out in the melee is to follow through on brand promises with on-the-ground efforts that meet the needs of the Chinese consumer in a timely fashion. Now doesn’t that sound like good old customer service?

For more information contact Ava Lawler in Text 100's Shanghai office.