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Internationalization Strategies and Challenges for Chinese Brands
Author: Ersan Yuekyapan
Tutor: GaoSong
School: East China University of Science and Technology
Course: Business Administration
Keywords: Internationalization brand management China Chinese brands Challenges
CLC: F273.2
Type: Master's thesis
Year: 2012
Downloads: 265
Quote: 0
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Abstract
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Chinese overseas investment has been increasing rapidly over the recent years as Chinese companies entered the new era of internationalization. Consequently, Chinese companies are exposed to a new generation with intense competition and open markets. Since global markets change at a fast pace, Chinese brands must adapt quickly to the new environment to survive in the competition, which makes the entire issue worth analyzing.This thesis examines internationalization challenges and strategies to overcome those challenges for Chinese brands by integrating three different research areas such as brand management, internationalization and Chinese companies. Chinese companies engage in internationalization by means of original equipment manufacturer, joint ventures, acquisition and organic international expansion. Each of these routes entails certain benefits coupled with distinctive challenges. The main reasons Chinese enterprises invest overseas are to develop advanced technologies, to secure natural resources and to buy strategic assets such as international brands. However, various literatures and survey results construes a negative country of origin effects and consumer perceptions towards Chinese brands. The survey results, in particular, identified Chinese brands with negative images such as cheap, low quality, unsafe and socially irresponsible, which poses tremendous challenges for Chinese companies to survive in foreign markets. As strategies to overcome the major challenges faced by Chinese brands, several brand communication tools and their effectiveness has been analyzed. The survey results confirmed the effectiveness of brand communication strategies such as co-branding, sponsoring and corporate social responsibility (CSR). Co-branding has the ability to enhance customers’perceptions regarding the quality and the trustworthiness of relatively unknown brands. CSR creates emotional incentives towards the more demanding and selective consumer. Lastly, sponsoring creates opportunities to expose brands to a larger group of audience and establishes strong beneficial brand characteristics. This thesis conveys that Chinese brands must strive to rid the current stereotypes against Chinese products by utilizing brand communications tools to send out positive messages regarding Chinese brands in order to survive in the competition against other global brands.
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