In a recent dialogue among members of the China Consumer Insights Group on LinkedIn, a member was asking for thoughts on "Why china can't create brands", referencing the following Newsweek article:

http://www.newsweek.com/id/207381

It's an interesting question, given the economic boom China has seen in the recent years.  I recalled my recent trip to Shanghai, Dalian and Chongqing where I spent a couple of weeks with consumers, discussing and observing the role of brands as a part of their lifestyles.

In response to the topic posed here, I think the biggest problem is that you cannot build a strong brand based on functional benefits (inexpensive and accessible) and speed to market. Consumers form their personal identities using the brands they buy...and consumers want brands that have more emotional "stickiness".

In China, it seems that consumers are still trying to manage the gushing flow of brands that are pouring out of the firehouse there. Given that Chinese consumers are also pretty cognizant of the implications of products that are made with a production efficiency in mind and have a lot of purchasing power, it stands to reason that they want to spend their money on brands with a solid reputation for quality and global recognition of identity as much as any other empowered consumer. 

Chinese consumers in particular seem very aware of the stigma against Chinese products. While in certain categories, like home appliances, there is a trust in and connection to locally produced goods, in most other categories - especially apparel and electronics, there is definitely not.  There is a perception not only of low quality, but lack of originality and organic inspiration.  Young Chinese consumers especially will be the first to tell you that Chinese manufacturers "just make cheap copies of products and styles from other countries".

I think, however, that those same consumers yearn to connect with Chinese brands that meet their evolving standards. They have a connection to their rich cultural heritage and the power of their people as an economic force that can forward the image of the Chinese people.  They want to elevate the image of the Chinese people that is presented to the world.  The role of branding from Chinese manufacturers can be a powerful voice in creating that evolution. It will be a change of mindset for Chinese manufacturers, however, to become better marketers and consumer strategists. It can be done, but manufacturers first must see the greater vision.

I look forward to the day an emerging Chinese brand with the right goods steps up the plate to compete both in China and the rest of the world.