Chinese Brands Lead In Shanghai, But
Just
When it comes to leading brands in China's trendiest
city, Chinese brands lead, but only by a small margin,
according to a report released by the Shanghai Business
News Center. Chinese brands held a 51.6 percent majority,
while non-Chinese brands held the remaining 48.4 percent.
The survey covered 500 leading brands in the city. Of
these brands, Chinese companies were the leaders for more
than half of the products made, with sales ahead of the
foreign brands. But, non-Chinese brands led in products
which depended more on technology, image and design.
Chinese brands led by a wide margin in home appliances
(63 percent) and food (54 percent). For color televisions,
air conditioning, rice cookers and kitchen appliances
Chinese brands held six of the 10 leading brands. For
DVD players, Chinese companies dominated eight of the
10 leading brands.
Chinese marketing experts have pointed out that although
Chinese brands hold a slight lead, Chinese brands are
much less competitive when image, technology and design
factors are worked into the equation. This suggests weakness
in the operations and internal culture of most Chinese
companies. Most Chinese brands are collected in areas
where technology is a relatively minor component, and
where design and image of the final product are not deciding
factors.
For example, Chinese brands are leaders in wool sweaters
and underwear, white wine, Chinese liquors and bean and
bean curd derived products, dominating 100 percent of
the market. But, these traditional businesses are limited
in profitability, and the opportunity for growth is limited.
Non-Chinese brands dominate in mobile phones and digital
cameras, where technology and image are often deciding
factors. They are also leaders in perfumes, fashions,
sporting goods, womens' cosmetics and luxury goods. In
these areas, Chinese companies have virtually no presence.
Buyers of these products are usually younger people who
have more money to spend. Most companies and advertising
agencies have targeted this group as China's, and the
world's, consumers of the future.
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