Why can’t Chinese build global brands?By
The Japanese did it. The Koreans did it. Even the Indians are managing to do it now. So why can’t companies from Greater China have more success building global brands? For years now, companies from China and Taiwan have been trying to develop global brand names – and do it fast. Rather than slowly, slowly, slowly building their brands overseas, the way that the likes of Sony and Samsung did, many have tried to go global overnight by buying famous but troubled brands in the West and trying to lower costs by shifting production to China. One of the first to try was TCL, China’s top TV maker, which took over the RCA brand from France’s Thomson in 2004. TCL Multimedia, the TV division of TCL, has been sliding ever since. Lenovo, China’s top PC maker, last year acquired the struggling PC business of IBM. The verdict isn’t in yet on the Lenovo experiment, but the company has struggled beyond its Chinese home and has brought in a bunch of new executives from Dell. Investors in Hong Kong-listed Lenovo are underwhelmed. A few months ago Lenovo got booted off of the Hang Seng Index, Hong Kong’s equivalent to the Dow.
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