jerryking + marketing + brand-conscious   1

Chinese Firms' Buying Binge Bet on Value of Western Brands - WSJ.com
JUNE 23, 2005 | WSJ | By GEOFFREY A. FOWLER.

Foreign companies have used several strategies to expand into the U.S. Some purchased U.S. brands …Others have built their U.S. customer base organically….But this path can take a long time and hit bumps along the way…But Japanese and Korean manufacturers that moved to the U.S. enjoyed a boost their Chinese counterparts lack: a government-protected home market in the 1980s and '90s that allowed them to finance their international push with rich profits from domestic sales. China has largely opened up its consumer market to competition. …Wooing brand-conscious Americans shoppers is a slow process that almost no Chinese manufacturers, used to selling on price, have mastered. Almost a decade ago, Konka Group Ltd., then China's biggest TV maker, made a big push into the U.S. and seemed to make progress for a while with a low-cost line of sets. But it never gained the marketing savvy or name recognition it needed and has since retreated to its home market, where it has slipped to No. 3…Buying an established company, on the other hand, offers Chinese companies immediate access to technology, experienced marketing executives and coveted distribution channels at a time when America's retail industry is consolidating…. The biggest hurdle, though, has been finding enough people who can bridge Chinese and Western business cultures. "Maybe Haier has the people," says Vincent Yan, a managing director of TCL. "We needed cross-cultural people with the right business experience. Those are very hard to accumulate."
brands  branding  China  M&A  mergers_&_acquisitions  Chinese  Haier  WPP  cross-cultural  white_goods  manufacturers  marketing  brand-conscious 
october 2011 by jerryking

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