Branding success in Africa in a diverse and novel way

"Very few Chinese companies have expanded in such a big way in Africa. But it is this expansion that has given us our competitive edge," Wang says, adding that the branches in Kenya and Cote d'Ivoire started making a profit within six months.

While many Chinese companies were focusing on trading in Africa, Sunda took the next step by creating its own brands in these markets, says Chen Guohai, dean of the Human Resources Department at the School of Management, Guangdong University of Foreign Studies.

Such a strategy made sense for Sunda, because these brands helped consolidate its presence in Africa, he says.

Having strong brands in overseas markets is one of the best ways that Chinese companies can improve competitiveness, says the year-end work review of the Ministry of Commerce.

The 2,551 foreign trade companies with brands, which made up less than 1 percent of the foreign trade companies in the country, accounted for 5 percent of commodity exports in 2011, it said. Exhibitors with brands forged orders 5.8 times more than those by companies without brands on average during the 113th session of the Canton Fair held in April and May, according to the ministry.

Sunda launched its own brands in African markets in 2011."It is relatively easier to create brands for fast moving consumer goods. We created brands that can withstand future competition, because initial advantages such as lower price can disappear fast," Wang from Sunda says.

The company currently has brands for products such as diapers, napkins, washing powder, toilet paper and ceramic tiles - and also for building materials and grocery stores.

In the future, Sunda would need to further subdivide the African markets for brand-building and focus as an international company in terms of management, operation and human resources, Chen from Guangdong University says.

It has already expanded its reach in procurement by selling tiles made in Spain and Italy. It is also considering sourcing products from countries such as India.

"China's position as a world manufacturing center will not be easily replaced but in certain categories of goods, we can source more competitive products from elsewhere," Wang says

At the same time, the company is also looking to move some manufacturing abroad and has acquired land for building a washing powder factory in Ghana.

"Industrial relocation is set to happen but you need to master the tempo well. If you go too early, when the conditions for such a move, such as power and water supplies, are not available, you become a fallen pioneer," Wang says.

Villa construction is another area in which the company is expecting success in Africa. The first phase villas developed by the company in Ghana will be completed this year.

Sunda has recorded annual sales growth in Africa of 20 percent to 30 percent in the past few years.