Why to Chinese trademarks not know them anyone?

Chinese companies are expanding in the world. They buy foreign technology companies, they hire some of the best talents and, increasingly, they acquire international brands.

But why Chinese companies aren't able to create their own international brands rather than operate under the umbrella of acquired global brands?

According to the Ministry of Commerce of China, only in January of this year, the china international investment touched US$ 4400 million, 60% more than in the same period of the previous year.

However, despite these figures, nor a single Chinese brand appears in the annual list of the 100 leading global brands by Interbrand.

In the early 1990s, Chinese companies as the brand of sports drink Jianlibao tried to unsuccessfully enter the international market and become a global like Coca Cola or Pepsi brand.

Li Ning, known by many as "the Nike of China", also failed in his first attempt at global expansion, but now he is trying again through a new business model.

There are exceptions: a few companies that have built global brands, such as e.g. Lenovo in computers and electronics.

Whether if we look at the successes or failures, the stories of these three Chinese companies that I discuss below can help us shed light on potential strategies for other companies seeking the recognition of your brand.

Jianlibao used to be the drink number one in China. Due to its success in the country, the manufacturer of beverages for athletes expanded in the 1990s to a dozen international markets.

In 1994 he moved to Jack Shea, a veteran of the beverage industry, for the post of Vice President of marketing and sales for North America.

According to him, "the fatal error of Jianlibao was that while it produced a tasty drink, its brand name prevented connect with the average American consumer."

On the contrary, the name of Coca Cola in China, kekou kele, is an example of an effective adaptation to the local market to connect with Chinese consumers. It sounds similar to the original, and means "delicious happiness".

"In addition, our operations in North America had no sufficient budget to make the necessary investment to promote Jianlibao within United States", Shea said.

The expanding abroad prematurely, the company lost its focus in China and began to lose market share to the benefit of competitors such as Coca Cola.

Rather than return to concentrate on the Chinese domestic market, where traditionally dominated, Jianlibao began to compete with Coca Cola on price.

As the sports drink Jianlibao was more expensive to produce because it was originally developed as a drink for the Chinese Olympic teams, the company had decide between competing with Coca Cola in China or abroad.

It was a quality product that they both liked to Chinese consumers as foreigners. What was missing the company was international experience, a trademark that networked, and sufficient investment in advertising to settle abroad.

Li Ning, a clothing and sports equipment company, also experienced challenges in his first attempt to expand internationally.

While many people probably has not heeded never about him, Li Ning, the founder of the company, is one of the most famous athletes in China.

Few in his country can forget the impressive image of Li on the runway, dressed in their own design, high in the "Bird's nest" Stadium to ignite the Olympic cauldron at the opening day of the Beijing 2008 games.

Li Ning was undoubtedly one of the most important Chinese brands at the local level, and also had global aspirations. Shortly after the Olympic Games opened its first office abroad near the headquarters of Nike in Portland, Oregon, United States.

After a few years, the subsidiary had to close.

When asked why failed this initial investment in the United States.UU. the Vice President of digital operations, Craig Heisner, explains: "I don't think that the original plan properly submit the heritage of Li Ning as an important Chinese brand founded by a famous Olympic athlete who came to the Summit".

Heisner adds that "Li Ning not promoted this issue, and then went directly to a fierce competition in the foreign market with companies such as Nike and Adidas".

The sports equipment industry already has important brands associated with everyday lifestyle. People have a strong affinity to buy family brands with which they identify, and Li Ning was not one of them.

Unlike Jianlibao, Li Ning had a second opportunity to build your business abroad. It recently turned to the digital market through a joint with Acquity Group venture, headquartered in Chicago.

Unlike his first attempt to reach the American market, Digital Li Ning is only a service of sales over the internet without physical stores.

According to Heisner, they are "choosing a business model that gives them greater control over how the products are positioned".

E-commerce will allow Digital Li Ning to shape the perception of the brand that have American consumers throughout the purchase process.

"We are a global company with roots in China." "By our acquisitions over the years, we really are from many different places", said David Roman, head of marketing of Lenovo.

It is a great company of PCs, and so far, it has been best known for its acquisition of the Thinkpad brand in 2005 and the Division of IBM PCs.

He also bought the German manufacturer of Medion PCs in 2011 and recently formed a company with the Japanese NEC.

Three main factors have contributed to its success in building your brand abroad.

"Our organizational structure is undoubtedly one of the keys to its strength", explained Roman. "Allows us to effectively create a comprehensive framework for the Lenovo brand within the local context of the markets in which we operate", he adds.

It has offices distributed throughout Beijing, Raleigh (North Carolina) and Paris.

Beyond its structure, Lenovo focuses globally on the consumer of the young segment, between 18 and 34 years old.

"We found that consumers in this demographic segment share similarities in different cultures because of their level of connectivity and openness to new experiences," he said.

The final factor is his leadership team comprised of executives from technology in more than six countries.

While many Chinese companies seek to emulate the Lenovo brand's global success, the examples of Jianlibao and Li Ning show that such aspirations are impossible to achieve without sufficient attention to the marketing.

The question remains that you for many Chinese companies, the growth at high speed of your business exceeds the growth of their brands.

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