Category Archives: Know-How

China Brands on the Move

March 4, 2010

In my last post I touched on the Chinese Government’s ‘Made in China’ promotional advertisement. I took the view that Chinese companies were increasingly serious about their products quality and integrity and becoming brand aware.haier

Recent surveys by the World Bank and the leading international brand development and valuation companies show that Chinese brands are on the move internationally. The big State-owned banks, technology and oil companies are now consistently in the top 100 and a number of them threaten the top 20 in the near future.

Remember that these brands (for example, banks like ICBC and Bank of China, the oil giant Sinopec and China Mobile) essentially did not exist 10 years ago. Much in the same way that the top Japanese brands like Sanyo, Panasonic and Toyota were 30 years ago, and Korean companies like LG, Samsung and Hyundai had no international presence 10-15 years ago.

We are all aware of the times when the phrase ‘Made in Hong Kong/Japan/Korea’ was used in a derisory manner to indicate low quality and unreliability. How things have changed (even despite Toyota’s current woes).

There are now a large number of Chinese companies that are poised to move into the world’s best brands lists in the next decade. Companies like Huawei, Midea, BYD and Haier to name a few.

Take Haier for example. One of China’s largest companies, they are now the 4th largest home appliance manufacturer in the world. You may have seen their low-cost and energy efficient refrigerators and air conditioners in your local stores. In many ways Haier have outmarketed and outplayed GE and the Japanese producers. Expect to see this company rocket up the leading brand lists in the future.

BYD (Build Your Dreams), the Chinese car manufacturer which has a special interest in electric vehicles and is the recipient of Warren Buffet investment, is also a brand that could be on everyone’s lips in the future. I will talk more of them in later posts.

And what does this increased brand awareness and success mean for online retailers sourcing products from China? One of the flow-on effects is that small to mid range Chinese manufacturers, including online suppliers, are rapidly improving their game in order to remain competitive – both in terms of cost and quality. We are currently seeing this on DHgate.com

Read more blogs like this on my “The View from China” blog at Practical eCommerce. Don’t forget to let me know what you think!

Also posted in Personal Insights, Trend Insights – 0 Comments

China Sourcing Trends

March 1, 2010

In the January issue of the UK’s ‘Internet Retailing’ magazine, I wrote the below piece for their ’Insights from Around the World’ column on the sourcing trends in China for overseas retailers. It includes some information that many of you will find interesting. Let me know your thoughts!

Insights from Around the World: China

Despite the winter chill, China was red-hot at the close of 2009.The country’s manufacturing activity accelerated in December at its fastest pace in several years and foreign exports were up USD$130.7bn, up 17.7% year-on-year. J.P. Morgan said it expects China’s growth momentum to continue throughout 2010. All this at the same time as internet shopping in the UK grew at its fastest rate for 22 months in December, as millions of shoppers migrated online to buy their Christmas goods.

Controversy over Beijing’s policy of pegging its currency to the U.S. dollar may continue to concern economists, but for the time being the fixed exchange rate gives China’s factories a nearly unbeatable price advantage against manufacturers in other countries.

The price advantage has grown even larger after the U.S. dollar, and therefore the Chinese yuan, fell sharply against other major currencies last year. Combine this financial situation with the growth of an already mammoth manufacturing industry and you get a retail buyers market.

Retailers purchasing inventory in China via DHgate.com demonstrated some interesting trends in 2009. Although Apparel and Accessories remained strong, technology purchases ranked as the most popular, accounting for around a third of transactions and a rise of over 10% on the previous year. Strong growth was also seen in the Health and Beauty and Home and Gardens categories, both showing year-on-year increases of around 40%. And with total Christmas stock purchasing representing DHgate’s busiest in its five year history, Chinese manufacturers are expecting to see huge growth in 2010.

With an increasing number of Chinese businesses setting up wholesale and manufacturing operations online, those who source from China will have a distinct advantage.  Traditionally it has been the Big Box retailers who benefit from China sourcing. The new evolution of this industry online allows smaller business to also benefit and pass on savings to their customers – increasing profits.

As consumers resume normal spending habits, retailers capitalizing on the surge of quality goods provided by Chinese manufacturers have the potential to expand their market share.

Also posted in Personal Insights, Press, Trend Insights – 0 Comments

Made in China: The Brand

February 11, 2010

As I write this entry, the Chinese Spring Festival is upon us. It is the most important Chinese festival and celebrates the start of the Chinese New Year and the advent of spring. It is traditionally a time for people to gather and indulge in a weeklong celebration of food, family and festivities. Think of it as all the merriment of western holidays rolled into one, but with a lot more fireworks!

Spring Festival also involves one of the largest annual human migrations with well over 200 million people making their way around the country; usually back to their home town for a family reunion.

Not surprisingly, China closes down for a week or so. Officially the country is on holiday from the 13th to the 20th February; however, the Festival can unofficially run from a week before to a week after these dates. In the case of businesses, most will only close for a few days of the official holiday. For example, at my company, DHGate.com, our customer service team be on holiday between the 13th and the 16th but will operate with a skeleton staff from the 17th to the 20th .

Most Chinese suppliers and shipping companies will be closed for a few days; therefore slight delays in processing overseas orders may be encountered. The shipping of products that are warehoused in the US and UK should not be affected.

During my recent business travels around Asia and the US, something that has caught my attention is an ad that promotes the ‘Made in China’ brand which is frequently appearing on international television. You may have seen it on CNN. The slick advertisement is a deliberate attempt, (the first to my knowledge), by the Chinese Government to rebuild and promote the China brand in the international market. Have a look at the ad here.

The theme of the ad is ‘Made in China, Made with the World’. Clearly the intention of the Government is to rebuild trust with overseas consumers after a string of product safety and quality issues and also to allay fears that cheap Chinese products take jobs away from overseas countries.

The message is that it’s a collaborative effort. People don’t often realize that over 60% of Chinese exports to the US are produced by firms owned by foreign companies. A computer ‘made in China’ is likely to contain a large portion of imported components. Also, although the final assembly and testing is done in China, the design and specifications were created overseas.

One of the other themes in the ad is that China is now very serious about the integrity of its brands both national and product specific. The commitment to product safety, quality and integrity by the Chinese government and manufacturers is greatly improving. In the future, I’ll detail the efforts being made in these areas.

Also posted in Events and Happenings, Personal Insights, Trend Insights – 1 Comment

The View from China

February 3, 2010

I was recently selected by Practical eCommerce, the industry’s leading resource site for online merchants, to keep their readership updated on the changes and happenings in China via an expert blog. My first post in ‘The View from China’ is below or can be found here.

To keep regular readers of this blog in the loop, I will repost my monthly entries here – So you will have a single hub for all my thoughts on entrepreneurship, running a business and the developing supplier and eCommerce situation here in China. And, if you have any areas you would particularly like me to cover, why not drop me an email or comment below? I’d love to hear form you.

“The View from China”

by DHgate.com Founder and CEO, Diane Wang

On the eve of the Year of the Tiger, I’m proud to present a new blog to readers which will give regular updates on the events and opportunities within the Chinese ecommerce scene. Here, I aim to give an insight into doing business in China and an insider’s eye into the world’s most exciting emerging market.

International ecommerce and ecommerce technology have been my passion for the last two decades. After leaving the security of senior management at Microsoft and Cisco I decided to go it alone. My first company, online consumer marketplace Joyo.com, was acquired by Amazon in 2004, and that same year I founded DHgate.com. My purpose was to create a platform which connects SMEs to the manufacturing hub which is China, and therefore level the playing field.

Despite the global financial crisis, 2009 was a great year for China. GDP growth for 2009 was 8.7% and the country’s manufacturing activity accelerated in December at its fastest pace in several years. Foreign exports rose to US$130.7billion, up 17.7% year-on-year, and analysts expect that the Chinese growth momentum will continue in 2010. Although the Chinese Government is playing it down, it has been confirmed that China has overtaken Germany as the world’s biggest exporter.

As an increasing number of Chinese businesses, large and small, are setting up wholesale and manufacturing operations online, I believe that there are now great opportunities for US retailers, particularly SME’s, to source products directly from China.

Recently, as part of its extensive stimulus packages, the Chinese government has implemented a policy to spur the growth of SME manufacturers and suppliers throughout China. In particular, it has directed local and provincial governments to encourage emerging industries through reform, assistance with market access and fostering local banks to provide finance to expanding businesses.

At DHgate.com, we have seen a surge in the number of Chinese SME manufacturers and suppliers who have migrated online. As these numbers grow, so do the opportunities for US retailers to be cost effective. I believe that there has never been a better time for US retailers to take advantage of the Chinese online sourcing market.

Because of this, I believe it is timely to introduce a blog on the Chinese ecommerce scene which will post regular updates on the ecommerce market in China with a particular emphasis on B2B sourcing.

The regular reports will focus on issues such as trends, new platform innovations, technological and other improvements and government initiatives and policy developments. I will also address pressing consumer issues such as product quality and safety.

Also posted in Personal Insights, Press, Trend Insights – 0 Comments

Branding Your New Business

January 25, 2010

Today I thought I would share some valuable information you can find on IntroducingSuccess.com. The site will be updated frequently, so if there are other ideas you are keen to see covered – just let me know! To start with, I wanted to bring up the issue of branding. IntroducingSuccess.com

A Guide to Branding Your New Business
“Brand identity” has become something of a buzzword in business and marketing circles. But that doesn’t mean that the brand you establish for your own business isn’t really important. Years ago, countries and companies battled for land and resources. Today’s savvy, web-enabled companies are fighting similar turf wars, only now, it’s for a share of the consumer’s memory. With customers being exposed to literally thousands of icons, logos, product names, and promotions per day, having a memorable brand is key to your businesses success.
One of the challenges of establishing a strong brand identity is that it can take a lot of time and money. If you’re a start-up or small business, it might seem like an unnecessary added expense. But remember, if your brand isn’t memorable it will have a negative impact on all your future advertising and marketing efforts. People might love the new bus stop ad you put up, but they still might forget your company name or customer might buy a great sweater from you once, but not remember your URL when describing it to a friend who’s just paid a compliment.
When we were first getting started at SuccessCo eCommerce, we didn’t have tens of thousands of dollars to hire a branding agency. But what we lacked in dollars, we committed in time and energy. If you follow the steps outlined below, you can make sure your company is memorable too.
1. Know the Brand Basics
First off, it’s important to know what a brand is. A brand is “the promise, the big idea, and the expectations that reside in each customer’s mind about a product, service, or company.” Your company’s mission, vision, ethos, unique selling points, customer satisfaction policy along with every interaction a customer ever has with you help define your brand. Everything you or your employees do can have an impact on that brand awareness.
Brand identity is the application of a brand that allows a customer to interact in some way. Your company name, logo, signage, packaging, marketing efforts, slogans, et cetera all inform your brand identity.
2. Research, Research, Research
Before you begin your branding exercise, you should conduct plenty of research – both about the competitive landscape and the goals and values of your own organization.
When conducting a marketing audit of your own business, compile or construct information that includes:
• Mission, vision, and values statements
• Value proposition (what is the unique offering of products/services that you are making available to consumers?)
• Organizational structure/chart
• Any business plans or strategic plans
• Existing marketing collateral and assets
• Any press releases or company-related media
• Organizational history
If you have this information in one place, you can easily review it during the branding process to ensure you’re establishing a brand that’s in line with what your company is all about.
Be sure to compile information on the competition so that you can a) be non-duplicative by establishing a unique brand, and b) avoid spending time and money on work that’s already been done. It’s important to know the following about the competition:
• Who are they? Compile a list of companies that offer similar goods and services to your proposed business. Be sure to identify indirect competitors too (e.g., if you sell ceiling fans, potential customers might be drawn away by discounts on air conditioning units).
• How are they branded? Create a list of all the company/product names and logos. Identify any similarities in words, colors, shapes, symbols, typography, etc.
• What are their key messages? Just as you’ve compiled your mission/vision, be sure you understand what’s driving the competition and how they’re presenting that to the rest of the world.
• What are they sending out? Gather as much competitive intelligence as you can by collecting marketing material including ads, brochures, flyers, coupons, website URLs, etc.
• What’s the consumer experience like? Whenever possible, play the role of a customer and see how the competition interacts with consumers. You don’t have to actually buy anything!
3. Design Your Identity
When you start to design your identity, a company and/or product name is the first step, followed shortly by a logo or graphic representation of organization or product. They say a picture is worth a thousand words, and your logo is no different. It’s likely going to be the most memorable part of your brand that the customer will interact with prior to making a purchase.
When it comes to having your brand designed, you may want to consider this a major investment and spend money on a reputable designer with specific experience creating brands. You’ll save on costs if you’ve done your homework by researching the market and have a good idea how you want to represent yourself. The more details you can provide, the more targeted the first round of designs you get back will be. Focus your thoughts on shapes, color, and then content/text that you want your brand to convey. That’s the order in which most people recognize logos.
4. Put Your Brand to Work and Manage Assets
Once your brand has been designed, it’s time to make it work for you. In addition to the obvious applications in signage, letterhead, envelopes, business cards, and your website, you should think of creative ways to incorporate your identity into your business. If you have a physical location, this could mean using the colors in the logo when painting or decorating the space. If you exist online, incorporate design elements of your brand into email communications, customer receipts, and promotions. When you have the budget, custom packaging (boxes, shopping bags, etc.) can also be a great way to promote your brand.
There are also countless promotional items ranging from pens and mugs to calculators and other gadgets you can add your brand to. The key here is to select items that are going to be used over and over again (spend the money on a oversized coffee mug for a client gift rather than disposable water bottles) and that ties in to your business in some way (if you sell eco-friendly cleaning products, skip the branded sticky notes in favour of a reusable shopping tote).

“Brand identity” has become something of a buzzword in business and marketing circles. But that doesn’t mean that the brand you establish for your own business isn’t really important. Years ago, countries and companies battled for land and resources. Today’s savvy, web-enabled companies are fighting similar turf wars, only now, it’s for a share of the consumer’s memory. With customers being exposed to literally thousands of icons, logos, product names, and promotions per day, having a memorable brand is key to your businesses success.

One of the challenges of establishing a strong brand identity is that it can take a lot of time and money. If you’re a start-up or small business, it might seem like an unnecessary added expense. But remember, if your brand isn’t memorable it will have a negative impact on all your future advertising and marketing efforts. People might love the new bus stop ad you put up, but they still might forget your company name or customer might buy a great sweater from you once, but not remember your URL when describing it to a friend who’s just paid a compliment.

Not all of us have tens of thousands of dollars to hire a branding agency. But what we lacked in dollars, we can commitin time and energy. If you follow the steps outlined below, you can make sure your company is memorable too.

1. Know the Brand Basics

First off, it’s important to know what a brand is. A brand is “the promise, the big idea, and the expectations that reside in each customer’s mind about a product, service, or company.” Your company’s mission, vision, ethos, unique selling points, customer satisfaction policy along with every interaction a customer ever has with you help define your brand. Everything you or your employees do can have an impact on that brand awareness.

Brand identity is the application of a brand that allows a customer to interact in some way. Your company name, logo, signage, packaging, marketing efforts, slogans, et cetera all inform your brand identity.

2. Research, Research, Research

Before you begin your branding exercise, you should conduct plenty of research – both about the competitive landscape and the goals and values of your own organization.

When conducting a marketing audit of your own business, compile or construct information that includes:

• Mission, vision, and values statements

• Value proposition (what is the unique offering of products/services that you are making available to consumers?)

• Organizational structure/chart

• Any business plans or strategic plans

• Existing marketing collateral and assets

• Any press releases or company-related media

• Organizational history

If you have this information in one place, you can easily review it during the branding process to ensure you’re establishing a brand that’s in line with what your company is all about.

Be sure to compile information on the competition so that you can a) be non-duplicative by establishing a unique brand, and b) avoid spending time and money on work that’s already been done. It’s important to know the following about the competition:

• Who are they? Compile a list of companies that offer similar goods and services to your proposed business. Be sure to identify indirect competitors too (e.g., if you sell ceiling fans, potential customers might be drawn away by discounts on air conditioning units).

• How are they branded? Create a list of all the company/product names and logos. Identify any similarities in words, colors, shapes, symbols, typography, etc.

• What are their key messages? Just as you’ve compiled your mission/vision, be sure you understand what’s driving the competition and how they’re presenting that to the rest of the world.

• What are they sending out? Gather as much competitive intelligence as you can by collecting marketing material including ads, brochures, flyers, coupons, website URLs, etc.

• What’s the consumer experience like? Whenever possible, play the role of a customer and see how the competition interacts with consumers. You don’t have to actually buy anything!

3. Design Your Identity

When you start to design your identity, a company and/or product name is the first step, followed shortly by a logo or graphic representation of organization or product. They say a picture is worth a thousand words, and your logo is no different. It’s likely going to be the most memorable part of your brand that the customer will interact with prior to making a purchase.

When it comes to having your brand designed, you may want to consider this a major investment and spend money on a reputable designer with specific experience creating brands. You’ll save on costs if you’ve done your homework by researching the market and have a good idea how you want to represent yourself. The more details you can provide, the more targeted the first round of designs you get back will be. Focus your thoughts on shapes, color, and then content/text that you want your brand to convey. That’s the order in which most people recognize logos.

4. Put Your Brand to Work and Manage Assets

Once your brand has been designed, it’s time to make it work for you. In addition to the obvious applications in signage, letterhead, envelopes, business cards, and your website, you should think of creative ways to incorporate your identity into your business. If you have a physical location, this could mean using the colors in the logo when painting or decorating the space. If you exist online, incorporate design elements of your brand into email communications, customer receipts, and promotions. When you have the budget, custom packaging (boxes, shopping bags, etc.) can also be a great way to promote your brand.

There are also countless promotional items ranging from pens and mugs to calculators and other gadgets you can add your brand to. The key here is to select items that are going to be used over and over again (spend the money on a oversized coffee mug for a client gift rather than disposable water bottles) and that ties in to your business in some way (if you sell eco-friendly cleaning products, skip the branded sticky notes in favour of a reusable shopping tote).

For more related articles, why not log on to www.IntroducingSuccess.com. Don’t forget to leave your feedback here!

Also posted in Business News, Personal Insights – 0 Comments
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