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Are Chinese Companies competing for the future?
Post 1 of 10
Dear All,

I want to ask every progressive company from China as to how important do they think is "Branding" their product range and markteing it professionally in export countries important and critical to survive in the future.

If each product can have a 100 factories producing them, i personally think that the chances for long term success in future is only for companies who are targetting a multiple "Importer-Distributors" business model by creating a proper Demand for their Brands in host countries instead of looking for one or two simple or small buyers or agents and trying to haggle only around lower prices,bargaining Clients and being one of the hundred factories for the same product.

Everybody knows in international trade today that the future belongs to companies who are having a country specific strategy for each destination and gun on serious long term business model.

But i think the vision is missing totally from 999 companies out of every 1000 Chinese companies.

I want to know whether such visionary company exist in China or not?

Kindly enlighten.

23 Mar 2006 03:49
Post 2 of 10
Replying to [Capacity India]:

Totally agree on what you are questioning.

The more important thing than branding is that the image of Chinese goods worsen on the markets as the Chinese manufacturers face with strict bargains on the prices and as they accept to lower the product quality to be able to supply with the price their customer wants.In the markets those products sold, people get a bad quality impressions of the Chinese goods as the products are easily brokent,out of order and useless.

Therefore, in the long run, the Chinese companies will have to find out
these facts and will have to resist those strict bargains for the sake of saving their quality. Then the second step, Branding will appear on the Chinese goods. This is not far too away..

Best Regards
Yarenimex
24 Mar 2006 08:47
Post 3 of 10
Dear Yarenemix,


Maybe the vision change is round the corner but in reality things which are imposed on people never work good in the long run.


From the core, Chinese Companies do not want to "Brand" so even if tomorrow there are market forces telling them to Brand or maybe address the marketing part, they would have some other direction to move at that point.


Even today, i come across advertisements by chinese Companies saying something boldly like ...." We spend 0 $ on advertising hence we have low cost...... and hence we are the best......any hence maybe we are closing down the factory too......Hahaha..."


Maybe educated Trading companies from HK etc would do the branding for them and actually make the right profits in the time to come.


Regards,
28 Mar 2006 03:26
Post 4 of 10
Replying to [Capacity India]:

who hold the main status of the market who will be the leader in the market.
currently, most of our Chinese manufacturers only act as a OEM in the international busines. they follow the importer, not follow the market.so once they lost their customers, they will lost the money and they will not know what the market demand.
but delightful, some of our manufacturers begin to figure their own brand in the market. they will plan to establish branch or office in the foreigne market.along with the development of international trade, Chinese companies begin to know the regulation of international trade better and better, they will go abroad and sell the goods by themselves not only depend on the importer.
after several years, you will see more and more Chinese brand goods in the foreign shop besides the lenovo, haier, and some others.
30 Mar 2006 01:46
Post 5 of 10
Dear AllensCafe,


The issue does not end in setting up a Branch Office or a Marketing Office in an Offshore country which can be done both by putting up your own people there or hiring a third party agency like us.


The parent company also needs be to dynamic enough and work as per a "Market Capturing" strategy with a reasonable amount of budget to do justice to the "Branding" in that particular market and convert that effort into cash flows.


Haier Case Study cannot be duplicated "as it is" by smaller companies which are thousands in numbers as they would not have the minimum required budget or the expertise in working through Consultants.


Though there are techniques available to give a much higher ROI to such companies compared to Haier who has not received a good ROI by inveting hugely in certain complex markets like India.


Regards,

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30 Mar 2006 02:10
Post 6 of 10
Replying to [Capacity India]:

i can get what you mean, you mean some of our Chinese manufacturers are only a copier, not a real designer, inventor. yes, i have to admit that some industry is just like what you said.
the topic of core technic has been talked for a long time in China.but we are still a developing country, most of our Chinese manufacturers are personal, especially in our Zhejiang province, almost all of the OEM manufactuers are grown up from a home workshop. but compared with the situation ten years ago, you will know our manufacturers have progressed a larger stride.
so i think it is unnecessary for us to talk this topic here, time will prove everything. also, i know your IT industry is developing faster and faster.but have your compaines had many own brand? i think your companies also need more time to make it too.

Thanks.
30 Mar 2006 03:18
Post 7 of 10
also we will be not only a good maker ,but also a good seller in the future.[em1]
30 Mar 2006 03:30
Post 8 of 10
Replying to [Capacity India]:The quality from China are quite disapointing for some categories item like electronics. A lot of the brand are not guine. Have to inspect properly before doing business.


ps: You get what you pay for it. [em9]
30 Mar 2006 04:04
Post 9 of 10
In fact it is a good opportunity time for a county like Malaysia to emerge as a front runner in product categories getting dominated by China as not only they make better products, they have a good knack for marketing too.


Rgds,

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31 Mar 2006 00:59
Post 10 of 10
Dear Allenscafe and Pretty Choice,


Is there a way somebody from China could organise "Seller Groups" for each Industry Cluster. i.e. one for Toys, one for Building Materials etc.


I.e. to Organise "Sellers Groups" within the same product category by charging a small membership fee and also make products under one "Brand Name" .


This add up of small fee can help create a marketing fund that can be spent on Marketing or Branding in specific export countries.


Not only will it address the costly branding or business development expenses issues, it would give repeat orders to the participants for their products within the portfolio and sort out sourcing problems for the Importers as they are buying through that pool.


It would also give amazing good returns to the organiser of the group. But is there someone from China who could arrange this group which actually does not need any capital, only vision.


I can advice this in detail to any Chinese Start Up/ Independent Consultant/Trading Company from China as to how this can be done & to anybody from China who has a vision for it.


Mail me at

Rgds,

01 Apr 2006 04:12
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