Country of origin and purchasing decisions
I've written in the past on this blog about the dangers of not being up front about your brand's country of origin (See this post about Benq, a Taiwan-based brand). There rarely is such a thing as a supernational brand -- a brand that rises beyond any national identity. Countries connote different images, feelings, passions, stereotypes in people's minds. These are positive or negative for particular categories of product offerings. Individuals around the world continue to pay a premium for French perfumes, American business education, British-built jet engines, Japanese cars, Swiss drugs, British private education, German capital goods, Cuban cigars. Fancy a root canal in North Korea? A bottle of sparkling mineral water from Ukraine? I think not. What we are talking about here is the hard economic impact of a country's soft power.
After talking with hundreds of people here in Taiwan, I get the distinct impression that people in Taiwan prefer Japanese-made electronic goods over goods made by Taiwanese companies. Given the choice between an Olympus digital camera put together by a Taiwanese company in Vietnam or China, or an Olympus straight out of the Japanese factory, I'd bet that most people in Taiwan would go for the latter.
It appears that Japanese firms are betting on this, too. I saw an advertisement on television here at the weekend for a Canon Ixus digital camera. Right at the end of the ad, adjacent to the Canon logo, was the phrase "Made in Japan." The local marketing person here in Taiwan obviously thinks that this is a worthwhile, unique selling point.
So what about Chinese brands? What do they represent for Chinese consumers and consumers in other countries? Will Chinese nationalism extend as far as consumers' purchasing decisions or will it take a back seat to individualistic behaviour? I know where I'll put my money.
As China moves into the limelight, it will also come under increased scrutiny from individuals around the world. The images that China and its brands evoke will play an increasingly important role in its economic development.
** The following article from MIT Sloan Management Review is very interesting in that it advises foreign firms to "Think Local, Act Global" in China. Multinational firms need to apply their brand values consistently, even in China, in order not to undermine their soft power.
***Angler fish photo by: Sr. Cordeiro
After talking with hundreds of people here in Taiwan, I get the distinct impression that people in Taiwan prefer Japanese-made electronic goods over goods made by Taiwanese companies. Given the choice between an Olympus digital camera put together by a Taiwanese company in Vietnam or China, or an Olympus straight out of the Japanese factory, I'd bet that most people in Taiwan would go for the latter.
It appears that Japanese firms are betting on this, too. I saw an advertisement on television here at the weekend for a Canon Ixus digital camera. Right at the end of the ad, adjacent to the Canon logo, was the phrase "Made in Japan." The local marketing person here in Taiwan obviously thinks that this is a worthwhile, unique selling point.
So what about Chinese brands? What do they represent for Chinese consumers and consumers in other countries? Will Chinese nationalism extend as far as consumers' purchasing decisions or will it take a back seat to individualistic behaviour? I know where I'll put my money.
As China moves into the limelight, it will also come under increased scrutiny from individuals around the world. The images that China and its brands evoke will play an increasingly important role in its economic development.
** The following article from MIT Sloan Management Review is very interesting in that it advises foreign firms to "Think Local, Act Global" in China. Multinational firms need to apply their brand values consistently, even in China, in order not to undermine their soft power.
***Angler fish photo by: Sr. Cordeiro
Labels: innovation
posted by Gordon Graham at 3:41 AM
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