China’s branding disadvantage : an investigation into China’s need to establish global brands, challenges faced when developing these brands, and alternative strategies available

Abstract

The Chinese firms are producing a major part of the world’s manufactured goods and China is currently the third largest exporting nation in the world. At the same time Chinese firms are only responsible for a minute number of well-known global brands. It is this disproportionate representation that has been coined as China’s branding disadvantage. Using a broad range of theories and research, this project aims to give a comprehensive overview of this branding disadvantage. Firstly, arguments will be presented as to why the lack of Chinese brands is actually a disadvantage. Secondly, the causes of this disadvantage, as well as current obstacles to future global brand development in China, are discussed. Thirdly, the two main strategies available to Chinese firms wanting to overcome the disadvantage are evaluated. Finally, a new third alternative strategy is described and recommended as more suitable than the other two.