International Marketing 10th Edition by Michael Czinkota, Michael Brumbach, Ilkka Ronkainen

Exercise 1

Newcomers Were Chinese Brands
China's economy is now at a tipping point-consumers have an increasing number of brands to choose from and therefore are becoming more sophisticated in their choices. Chinese companies understand that good brand building is a powerful way to develop and maintain a competitive edge in a market evolving as quickly as China's.
The Giants
State-owned enterprises (SOEs) dominate, benefiting from strong government support, relatively few competitors, and a growing commitment to brand building. Some SOEs, such as China Mobile, have taken advantage of favorable market conditions to adopt sophisticated brand strategies and market-segmentation approaches. These steps should position these brands well as they are expected to face increased competition in the future.
The Innovators
Innovator brands have developed great products and great product experiences. The technology sector ranked highly, with online entertainment platform TencentQQ ranked at number eight and search engine Baidu close behind at number nine. Other brands have also demonstrated high levels of innovation: China Merchants Bank (rank 11), which has invested heavily in branding and rolling out new customer offerings; domestic automotive manufacturer BYD (rank 19), known for its electric car designs and green technology; and Haier (rank 29), recognized for its energy-efficient product designs and consistent branding.
The Image Builders
Brands in the packaged-goods, beverages, and retail categories operate in extremely crowded spaces, where brand building can play a critical role in differentiation. In this group, trust and product performance are key factors in successful branding.
Wine and beer brands Changyu (rank 22), Tsingtao (rank 35), and Great Wall (rank 50) all recorded strong brand contribution. COFCO's Fulinmen food brand also claimed a spot at number 49. Retail/sportswear/clothing brands also stand out, with Li Ning (rank 24), Metersbonwe (rank 31), Anta (rank 43), and 361 Degrees (rank 44) placing in the top 50.

Brands based in North America still account for a disproportionate amount of brand value. The brand value of the leaders based in North America totaled about $830 billion, or roughly 55 percent of the roughly $1.5 trillion in value for all brand leaders ranked in the regional charts. China appeared with only two brands in 2006 and increased to 12 in 2011. How many brands will China have by 2015?