Willingness to embrace technological innovation, China’s rapid economic growth and the advantages of a large domestic market have been the key factors for many Chinese brands to gain international recognition in recent years, officials said. brand experts.
Chinese brands, such as telecom giant Huawei, instant messaging app and social media platform WeChat, and home appliance maker Hisense, have dramatically increased their international visibility over the past two years and have become household names in many overseas markets.
From virtually no presence among the top 100 global brands in 2007, Chinese brands have grown by a staggering 8,696% and now account for almost a quarter of the total brand value of the top 100. according to the analysis of the London consultancy firm Brand Finance. .
Paul Temporal, brand expert and research associate at Oxford University’s Said Business School, said: “The main elements responsible for the global growth of Chinese brands are technological innovation and a clear understanding of consumer needs. . -related technology, which is becoming increasingly important for the development of the global brand in all sectors.”
Ashley Dudarenok, China digital marketing expert and founder of Chinese digital marketing agency Alarice, said: “The development of China’s economy has certainly led to an increase in China’s global influence, but the factor more important is technological innovation.
While products made in China have gained international market share due to their early profitability, she said, “In recent years, the development of Chinese technology and the continuous improvement of their manufacturing level enabled Chinese products to operate with higher performance and better quality based on the original price advantages”.
Experts believe that the importance of the domestic market in preparing Chinese brands to enter international markets should not be underestimated.
“Many Chinese companies’ strategies for going global include transferring their domestic experience to the overseas market,” Dudarenok said. “Indeed, the vast domestic market has accumulated a lot of experience for brands to go international.”
David Haigh, Chairman and Managing Director of Brand Finance, said: “Generally there is growing trust of Chinese brands in the West, especially when it comes to entertainment and high tech, for example, WeChat, TikTok and Hikvision.
“They’re all coming out of their Chinese colors more and more and they’re accepted,” he said. “TikTok, I think it’s probably in the (US), UK that people don’t necessarily know it’s Chinese or as far as they know it’s Chinese, but it doesn’t don’t bother. It’s a good thing.”
It should be noted that over the past decade, there has been a strong presence of Chinese sponsors at major international sporting events, including the Olympics, the FIFA World Cup, European football tournaments and tournaments Grand Slam tennis.
“Sponsoring key sporting events has certainly given Chinese brands the opportunity to boost their global brand awareness,” Temporal said.
“Sport is a unifier and represents the true spirit of humanity, with a global audience that shares universal values.”
Although it is expensive to get to the world’s top events, sports sponsorships yield long-term results, and Chinese brands must be there for future growth in global market share and profitability, he said. he adds.
Haigh said he noticed an interesting shift in rugby sponsors, which used to be the preserve of very established UK banks and insurance companies, but now TikTok is one of the sponsors.
“I think Chinese brands have learned lessons from the West, in terms of how you get your brands across to the audience that supports you. They realize that if you associate yourself with sports, entertainment or in cinema, you create emotional empathy with your brand, so I think the quality of brand management in China is increasing rapidly,” he added.
Temporal said, “Brands that go global are ambassadors for China, and if they succeed, they have a positive impact on the national brand image. Fueled by government support and increased business confidence, this is a very exciting time in the development of China’s global brands. .”
Looking ahead, Dudarenok said the pace of Chinese brands going global will only accelerate. “China has good products, scientific and technological innovation talents and production capacity, so improving brand awareness and influence should be the most important step in this process.
“In addition to the existing dominant consumer-related brands, such as clothing, appliances, cosmetics and other categories, we will also see more brands related to technology and culture, such as games, apps mobiles and films, will also take their place on the world stage in the future,” she added.