Can Chinese Brands Make It Abroad Essay

chinaware is known for its manufacturing due to low compass costs and supplies the worlds biggest soils. Most Chinese companies take on the role of original-equipment manufacturer (OEM). However, due to the home commercialise being so competitive, the Chinese government now wants Chinese companies to tackle the grocery store foreign by establishing their brands in veritable countries. Currently, companies have now emerged in developed markets with products such as appliances and consumer electronics. Examples of this include Lenovo computers which have positi iodind itself for overseas expansion.Keijian, a mobile-telephone maker, sponsors one of Englands top soccer teams to build brand recognition. The way in which Samsung achieved this was acquiring basic product-development skills through joint casualtys and more than 50 applied science-licensing agreements. On establishing their brand in the US, Samsung discounted their products to objective price-sensitive customers. Slo wly it learned the requirements of its markets by conducting vast market research, building sales overseas and manufacturing operations in the US, Germany, the UK and Australia.They similarly increased R&D budgets which allowed them to enthrone in products and technologies that would raise their brand profile. China competes against the worlds best electronic products in features, persona and price. Furthermore, its low labor costs make Chinese goods less expensive. Also, China has a large growing pool of skilled engineers and money to invest in new products. By products alone, it is safe to say that China evoke establish themselves abroad, however, developing the right marketing strategy for branded goods is mainstay. brandingBefore, consumers were reluctant to buy good from Japan or Korea in business concern of quality issues and now China is experiencing the same issue. The Chinese companies most belike to succeed are those which have a track record in low-cost, high-qua lity manufacturing and show marketing skill on a local anaesthetic level. Haier has create factories in the US which they believe the added expense of producing goods there is outweighed by the superpower to respond quickly to changes in the market. OEM Cost, quality leadership, acquiring the need technology and capabilities and the ability to support a number of global customers are the key success actors in the OEM model.Low costs must be attended by excellent skills in supply chain management and sourcing. Manufacturers for OEM customers target those who want lower manufacturing costs but not ready to suffice up operations in China. Channels Step by timber approach Retailers are looking for distinct brands and products. They whitethorn in any case be interested in deals with Chinese companies who supply products on an exclusive basis. ledge space is in any case expensive and the competition for it can be intense. SVA has alter itself, focusing on high-end plasma TVs, TFT -LCD displays and DLP projection TVs.It also mass-produces quality products at a low cost. The company took a measuring by step approach to success 1. Relying largely on distributors that cater promotion and renovation assistance to manufacturers. This gave the company a chance to learn about the US market. 2. Working with distributors on trade-level promotional activities including attendance at industry conferences quite than spending millions to build brand sensory faculty. Distributors find SVA attractive because it can offer customers low-cost products, a factor thats important to small and midsize electronic retails that compete with big retailers like Wal-Mart. 3. Avoid low-end color TV market where it would be up against other Chinese companies selling on an OEM basis. They instead focused on upmarket products where the market is growing and there is bitty rivalry from other Chinese companies. 4. Recruited US-based executives to whom they gave an equity stake in the v enture and hired Japanese ex-Sony performance managers to help control its manufacturing quality. Its also working with international firms to improve design. Taking this model to Europe may prove a little trickier due to Europeans being more informed of brands and quality.Channels Buying your way in An alternative is buying into the market through mergers and acquisitions. Suitable targets would have valuable assets, brands, customer bases, technology or channels. A buyer could move the bulk of the acquired companys production to China while retaining the brand name, distribution channels and some of the local talent. Over time, it could co-brand the product with its own name to build customer awareness of its Chinese brand. Once this is established, the buyer could phase out the target brand.The biggest obstructer is locating qualified turnaround managers. TCL International Holdings purchased a German boob tube maker in an attempt to tap into the European market. Included in t he acquisition was Schneiders plants, distribution network of chain stores, hypermarket, mail found and trademark rights to a series of brands. Some Schneider employees were also rehired to oversee production. TCL is also using the Schneider brand to position its mobile telephones in the high-end segment of the Chinese market.