Dexter RobertsÆ (2004) ChinaÆs Power Brands provides a detailed assessment of ChinaÆs determination to capitalize on strong home brands by pushing them in the international marketplace. In 2005, Beijing is due to open ChinaÆs markets to foreign competitors and a host of brands. While many individuals and the companyÆs they own have made a fortune on local brands in China, Roberts (2004, p. 78) argues, ôWith their resources and production base, they are large enough to reach out to the world.ö
Some analysts maintain that Chinese companies ôàare light years awayö from going global successfully, (Roberts, 2004, p. 78). This is because Chinese companies are on a learning curve compared to international brands that are firmly established. This learning curve is compounded by the need for better products, greater innovation, and more savvy marketing on behalf of Chinese companies. In many industries in China, overcapacity tops 30% and the lack of spending on innovation gives ômultinationals the edgeö for now (Roberts, 2004, p. 82). Depth of management is another obstacle for Chinese companies, many of them founded by maverick entrepreneurs. However, due to the size of ChinaÆs market, increased spending on advertising, and ChinaÆs determination to learn to be a global competitor, Chinese brands may one day rival or surpass foreign competition.
I think RobertsÆ article is timely. ChinaÆs determination to push its products and brands on the global market comes at a time when ChinaÆs economy is booming and the U.S. dollar continues to fall. The trade gap between the U.S. and China continues to grow in ChinaÆs favor. Both of these developments bode well for Chinese brands and the upcoming international offering of Chinese products and services. ChinaÆs determination is legendary when it sets a goal. As Roberts (2004, p. 82) maintains, ôThese areàformidable probl
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