Australia’s The Age newspaper has an interesting article today on the success of big foreign brands in China. Entitled, “Big Brands Hit Jackpot in China,” it talks of how global brands like Ikea, Starbucks and Cadbury are “achieving their financial goals ahead of schedule as they take advantage of a growing middle class [in China].”
The article is based on a KPMG study based on interviews with executives from 77 global consumer-branded companies. The study reveals the trend for foreign companies to bring their global brand into China, rather than coming into China by buying a local brand. The article cites Wal-Mart as an example of a company going into China with its own name, rather than using the name of the stores it buys, as it did in Brazil.
The survey found that more than half the companies that were doing business in China reported profitable operations within five years and of how almost a quarter of those companies had achieved that in just two years. As an example, Johnnie Walker experienced only a two percent rise in spirit sales in Europe in the first half of last year, but achieved 45 per cent revenue growth across China, India, Brazil and Russia.
“Eighty three per cent of executives said now was the time to invest in China.”
David Nott, leader of KPMG’s transaction services for the Asia-Pacific region describes “American culture as “pervasive and as these economies are growing, and as people’s incomes are growing, aspects of Western culture are becoming more appealing.”
For more on foreign companies and their China branding, check out the following
- American Consumer Products Are Hot Among China’s Chuppies
- Cha-Ching! Multinational Advertising in the new Chinese Market
- Chinese Brands
One thing though that you must not forget if you plan to bring your brand into China is that you must also be sure to trademark your brand in China by registering your trademark in China. For more on this, check out Faked in China — Protection Is Possible. Register Your Trademarks In China.