Global traction key to branding success of firms

Awareness, differentiation can help Chinese enterprises gain recognition

While some traditional brands are striving to shine on the international stage after achieving acceptance in the domestic market, many new entrants are seeking global success first and considering the domestic market later.

"It has already become a trend or model for some Chinese brands and I think we will see more young entrepreneurial Chinese brands adopting that strategy, as there have been many successful examples," said David Roth, CEO of WPP Global Retail Business.

"If you had asked me that question five years ago (whether a Chinese brand could make its name on the global stage before hitting the domestic market), I would have said that it's impossible for a brand that is small in its domestic market to be a big international brand. Up to relatively recently, we would have said that it's a model that holds true."

Chinese brands are in such a rush, they don't want to wait until they're big in China before they develop outside of the country, "so we are seeing many big brands outside China, which are still small brands inside the country," he added.

Zaful, a one-stop online shop for fashion apparel, is one examples of boosting brand awareness in countries like the United States, Canada, Australia and the United Kingdom before trying the domestic market.

"What works for the rest of the world is likely to be popular in China," said Leo Wang, Zaful founder and CEO.

The global presence of Chinese companies also helps domestic buyers develop a positive attitude toward them. Chinese consumers have intense pride knowing their brands are valued and used across the world.

However, Roth said it's just as important to select markets carefully, as catching on in larger countries like the US is much more difficult than in regions like India, Latin America, Brazil or Indonesia.

"Chinese products need to be of good value, affordable and highly innovative," he said.

Roth believed Chinese brands like Huawei are already branding themselves as good value and highly innovative.

According to the recently released annual BrandZ Top 50 Chinese Global Brand Builders ranking, jointly prepared by creative transformation company WPP and its research firm Kantar Millward Brown, younger consumers across the world are more receptive to Chinese brands.

"I think one of the key things Chinese brands need to do in a bid to be global players around the world, is to increase awareness, and differentiation, and fine tune those brands, targeting specific regions," Roth suggested.