Chinese brands have won significant worldwide recognition as Chinese companies are edging up in the global value chain from being world factories to brand leaders in the past decade, experts said during a recent forum in London.
Around 100 industry leaders attended the forum, entitled Sunrise in the East, held by brand valuation and strategy consultancy Brand Finance on Thursday.
David Haigh, the company’s chairman, said that when it launched its ranking of the global 500 companies in terms of brand valuation in 2008, there were only 13 Chinese companies on the list. But in this year’s ranking, there were 72 Chinese companies, representing a total of $1.3 trillion for overall brand value.
“Although America still dominates the global 500, its position is gradually being eroded,” said Haigh. “One of the questions that I often wonder is how fast will that be eroded over the next 10 years.
“A lot more companies and brands in China are now taking the external market much more seriously. There is a rapid growth in trying to develop markets outside China, and we see it every day,” he added.
“Chinese companies are moving from just ‘made in China’ to ‘created in China’, from making products to creating valued brands.”
Divided into three panels, industry experts from different sectors discussed the current performance of Chinese brands, and the obstacles to achieving better results.
In the panel on apparel and retail, Wang Qing, a professor of marketing at Warwick Business School, said that although Chinese companies are doing well in e-commerce platforms such as Shein and Temu, the majority of them remain at the lower end of the value chain, while some brands, such as Bosideng, are breaking into the global market for high-end down jackets.
Yolanda Yang, the United Kingdom representative of Eve Group, shared the company’s recent efforts in establishing itself as a high-end men’s clothing brand with storytelling focusing on its cultural and embroidery heritage design.
In the automobile panel, Scott Chen, the managing director of Brand Finance China, pointed out that Chinese carmakers are among those with the fastest-growing influence in branding. He added that BYD has become the first Chinese domestic automobile company to enter the company’s global 500 brand ranking.
Other panelists Paul Banham, who is head of the automotive division of brand experience consultancy Strata, and Ding Yang, founder of New Silk Route Digital, shared their marketing advice for Chinese carmakers in expanding overseas.
In the food and drink panel, Claire Urry, chief commercial officer of the China-Britain Business Council, noted China’s liquor brand Moutai’s localization strategy unveiled last year, and said she is waiting to see more recognition of Moutai in the UK.
Janet Wang, author of
The Chinese Wine Renaissance
, shared her observations of the rise of Chinese wine in international competitions and said she expects a greater presence of Chinese wine in high-end restaurants in the near future.
“I think wine is the best product to push soft power because the concept of ‘terroir’ in wine production emphasizes the local character, climate, culture and people,” said Wang. “Wine is very much about the locality, so I feel Chinese wine will be a fantastic cultural product and brand ambassador.”