According to the 2023 “BrandZ Most Valuable Global Brands Ranking” published by Kantar Group, only 14 Chinese companies made the list. This indicates that while domestic brands have achieved notable success in overseas markets, establishing a firm foothold globally remains a significant challenge.
Business Globalization vs. Brand Internationalization
Visual Image Upgrades vs. International Brand System Construction
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Chinese companies urgently need to address issues that extend beyond merely selling products or appearance upscale. The focus should shift towards building a global presence that fundamentally strengthens its brand influence and drives business growth through internationalization.
The playbook of successful large and medium-sized enterprises that have navigated the global waters is always worth emulating. Coupled with Landelion’s 16 years of cross-border communication expertise, we’ve distilled the best practices into a two-step approach:
Step 1: Strategically aligned internationalization
Building a brand is a long-term and systematic effort, and creating a global brand is an even larger and more complex undertaking. For most Chinese brands in the early stages of globalization, a clear and globally consistent internationalization strategy is the foundation for future success.
1.Internationalization of brand strategy
Re-evaluate a globally consistent brand vision, promise, story, and core elements to deliver a unique message to both domestic and international audiences.
Identify which core elements should remain consistent globally, such as the core brand philosophy, humanistic care, and aesthetic style. For example, Huawei’s “Building a Better Connected World” and Alibaba’s “Making It Easy to Do Business Anywhere” demonstrate the brands’ commitment to reshaping the world, resonating with global audiences and evoking emotional connections.
Align brand architecture and operational systems to ensure coherence and balance between the master brand and sub-brands.
2. Internationalization of brand image management
This involves not merely a visual upgrade, but a comprehensive overhaul starting with a refreshed international brand strategy. Create a unified brand image management system suited for overseas markets and foster global brand consensus.
Understand the media landscape, consumer preferences, and brand touchpoints; recognize the distinctions between domestic and international markets.
Centering around the core of the international brand, optimize the existing brand management system into a set of guidelines suitable for global brand operations, such as refining the entire CIS system from visual elements to concepts and behaviors.
Ensure global consistency in brand messaging.
Step 2: Precise implementation of localization
Going Global = Acting Local
As a successful brand aspiring to resonate with consumers, it’s essential to respect local culture, tastes, and needs while maintaining global consistency in core brand values, effectively communicating and implementing localized strategies.
1. Localized product strategy:
l Adjust product offerings based on regulatory differences and commercial norms in local markets.
l Adapt quality improvements and innovations based on diverse consumer preferences, climate, and other objective conditions.
2. Localized marketing strategy:
Foster more localized partnerships and customizations: Companies like Haier have implemented strategies such as allowing American partners to manage their U.S. operations and tailor products for the American market, contributing to their success.
Customized key messages for different markets: For example, in the United States, the combination of brand name, spokesperson, and origin information can significantly impact the marketing of products from developing countries.
Thorough consideration of cultural sensitivities: Before any marketing initiatives, conduct a thorough review of local cultural sensitivities.
3. Localized communication strategy: Reach target audiences through the appropriate channels.
Adapt to local advertising environments: traditional media vs. digital media? online events vs. offline events?
Identify KOLs/KOCs in different countries and regional markets, moving beyond the conventional “end-user” mindset.
Create fully localized communication content.
4. Localized corporate operations:
Build a robust local talent pool and promote the local corporate brand culture and experience.
This two-step approach may seem straightforward, but the challenges encountered in practice are significant:
Formulation of brand strategy: Based on a deep understanding of the global market, internal capabilities, and brand communication theory, lacking any one of these is an unwise choice.
Localization strategies: The differences in markets and target audiences have a significant impact on localization strategies. How can we grasp local markets, consumer perceptions, preferences, and behaviors?
Communication content: Language translation vs. localization; the marketing challenges posed by culture and context are omnipresent.
Therefore, Landelion recommends engaging external experts in globalization/localization strategy consulting and service providers for localized content adaptation when necessary, to proactively avoid potential pitfalls.
- Global and local market relevance
- Cultural understanding in regional markets
- Legal compliance in regional markets
- Language expertise combined with context, culture and professional content
Addressing these challenges can make the transition from “selling goods” to “building brands” less daunting for Chinese companies.