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Brand - Essay Example

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Nowadays, Chinese consumers prefer global brands. The Japanese and Koreans may choose local brands over global brands because of strong national…
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Download file to see previous pages... They purchase a large number of imported goods on a daily basis. It may even be observed that the more imported a product appears, the more willing Chinese consumers are to purchase it. This great preference for global brands is the main reason for the thriving of numerous foreign firms in China, and is also one of the main reasons why China at this time does not have any global brands.
Between 1980 and 1990, the gross domestic product (GDP) of China increased at roughly 10% annually. China became one of the world’s biggest economies in terms of GDP by 1998 (Nolan, 2001, pp. 186-187). After two decades of industrial program in China, adopting several strategies utilized by Japan, and with the same clear policy objective, important developments have occurred in the nation’s major, state-owned industries. The major industries have developed quickly in terms of profitability. They have adopted new technologies, become skilled at competing in the marketplace, largely improved the technical skills of their workers, gained considerable knowledge of global financial markets, developed new managerial expertise, and became desired associates for multinational firms (Gu & Frank, 2006). However, in spite of major improvements, none of the major Chinese ventures has developed into a globally competitive firm, with a global acquisition structure, a global market, and, most importantly, a global brand. According to Nolan (2001), China has only five corporations in the Fortune 500.
The Chinese economy has developed rapidly in the recent decades because of developments in economic, cultural, and political arenas, allowing Chinese industries to expand and support the nation’s demands for goods and/or services. It also paved the way for global trade and foreign investments. Ultimately, China, with its cheap labor, has become a popular Original Equipment Manufacturer ...Download file to see next pagesRead More
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