Identity and Differentiation
Brand switching is common in China. Consumers are fickle because they now have a lot more choices than they had a decade before. Furthermore, many brands have not done an adequate job of identifying and understanding their core markets in order to target them effectively.

Buick is an example of a brand that faltered despite a strong debut. When Buick was first introduced in China, it was presented as the vehicle of choice for the crème de la crème of society. Pu Yi, the last Emperor of China, was shown in its ads to have possessed a Buick in the 1920s. Similar ads were run of Chinese leaders like Sun Yat-sen and Zhou Enlai. The brand became an instant hit and Buick quickly began to sell more vehicles in China than in the US.

Pu Yi, China's Last Emperor, drove a 1932 Buick Tudor

To take advantage of this growth, Buick started selling lower-end models in China. Although sales boomed initially, it went into a decline soon after. This was because corporate chieftains did not want to drive the same car as middle-class or first-time buyers. The latter group were also dissatisfied, as they thought they were buying into the Buick brand and Buick quality but the watered-down version did not meet their expectations.

At the end of the day, no one knew what Buick stood for. Was it high-end or low-end? One size does not fit all in China and a well-thought about strategy is definitely needed there.

Local Relevance
A brand has to fit into the preferences and lifestyle of the target market before it can be embraced by it. Wall’s found that people in China generally do not eat desserts through its initial research. So when the company launched its Vienetta ice cream in the market, it repositioned the product as a shared experience and special treat for aspiring young professionals who wished to connect with the symbols of international success.

Kentucky Fried Chicken (KFC) went a step further by constantly updating its menu to appeal to the market. The highly localised menu includes congee or Chinese-style porridge for breakfast; Beijing Chicken Roll (à la Beijing Duck) served with scallion and seafood sauce; and Spicy Diced Chicken, which resembles a popular Sichuan-style dish. This has won them a large and loyal following in China. With more than 2,000 outlets in the country, KFC has a 2:1 ratio over MacDonald’s here. Outside of China, it is the other way round in most countries.

Connecting with Consumers
Branding is a highly symbolic form of communication. It often draws upon associations to infer upon the brand a certain quality. In China, a different set of cultural associations has to be adopted.

Clarins for instance struggled with sales of its male grooming products because it did not treat China as a separate market. Leveraging on its international advertising, it presented ethnically diverse, metrosexual models to local consumers. Already nervous that caring about their appearance means they are not manly, Chinese males were put off by Clarins’ advertising campaign. They could not relate to the models and had no desire to look like them.

Other brands also failed with advertising campaigns featuring blonde preppy models lounging on yachts. Unlike the West, yachts and the Hamptons were not in the popular imagination in China.

In contrast, L’Oréal successfully promoted its male cosmetic brand Biotherm by leveraging on Korean movie stars. At a time where Korean movies and pop music is highly popular in China, these stars carried a look, style and personality that Chinese men aspired to and Chinese women wished their boyfriends had.

Like  most other countries, China presents its share of challenges for brands entering its market. More than just language, a strong understanding of the people – their habits, preferences, desires, identities, aspirations – is crucial in making the emotional connection that is part of the branding process.

Furthermore, China is more similar to Europe than the US, where strong regional differences in language and culture exist. Companies hoping to establish substantial presences in china are well advised to invest as much in consumer research as their marketing and promotion efforts.

Covering this would take an entire tome of a book. Perhaps we should “begin at the beginning” with the brand name and logo. Why do some succeed where others have failed spectacularly in their branding? Past forays of Western pioneers provide good insight into the market.

A Rose by Another Name Does Not Always Smell As Sweet
People often form their first impression of a brand from its name. The name also influences how they think about a brand later on and connect with it emotionally. Thus, a proper translation of the name can lead to a successful penetration of a market.

But first, how are brand names translated in China? Basically there are three ways. The first is a literal translation. For instance, Microsoft was rebranded as “微软” , with “微” denoting micro and “软”, soft.

The second is phonetic. A Chinese name that sounds like the English one is chosen. Ikea is known as “宜家” (Yi Jia) and Samsung, “三星” (San Xing) in China.

The last way is to express a similar image or concept in Chinese. Shell Oil is recognized as “贝壳” (shell) while Wrigley’s is “箭牌” (arrow brand). Sometimes, a combination of these devices is used. Coca Cola’s Chinese name, “可口可乐” , is phonetic. At the same time, it is also a conceptual translation because the name means “allowing the mouth to rejoice”.

The brand names that strike a chord with Chinese consumers are those that call attention to the brand value. An example is Mercedes Benz, which was rebranded as “奔驰” (speed ahead). Its competitor BMW, known as “宝马” (precious horse), has managed to endear itself to this market as well.

Like in other markets, brand names that arouse positive emotions perform very well in China. Carrefour, one of the most popular foreign supermarket chains here, is known as “家乐福” (Family Fortune and Happiness). Its success can no doubt be partly attributed to its name, which refers to a happy and fortunate family. In a country where life is centered around kin and kith, the name reaches out effectively to the market the brand is targeting.

Brand names can further confer positive values to a brand. The Chinese name of Full Mark, a hotel, is “福 满客”, which implies it is always fully-booked and guests have high praise or full marks for the place. Similarly, Hyundai is seen as a technologically advanced company through its name, “现代”, which means modern in Chinese.

The Other Side of the Looking Glass

Logotypes present another challenge for foreign brands in China. The meaning represented in the image may not always carry over due to differences in cultural associations. Quaker Oats was affectionately adopted by the Chinese market as “老人牌” (old man brand), but Polo Ralph Lauren’s polo player was nicknamed “三脚马” (three-legged horse), which carried none of the classic affluence and prestige the brand conveyed in the West.

Imagine this happens to your company, except in Chinese. The ridicule and derision heaped on your brand may be something it might never recover from in China.

Nestle was one brand that successfully tapped into the China market by aligning its branding to the cultural values of the country. The image of a female sparrow breeding its young in its logo evokes warm feelings of parental love in the market. This was well-received in a society where the concept of filial society is held in high regard.

To look at this issue from the opposite perspective, hilarious brand names in badly translated English can be found all over the world.

China may be a land of opportunities, but make sure you have the right localization team behind you before you venture into it!

In his recent speech at the International education Summit in Toronto, Education Minister Dr Ng Eng Hen said “We believe that students will need 21st century skills – knowledge, skills and a value system. Students need new skills today, such as the ability to handle information. They also need the requisite language skills and a more expansive world-view, coupled with the ability to work in diverse teams. And finally, knowledge and skills must be anchored by values and strong character development – the aptitude for lifelong learning, resilience, integrity and compassion.”

Dr.Ng Eng Hen also reiterated that Singapore’s education system is well in its next phase, having progressed from a well-oiled and extremely efficient machine from the early 1990s, one key pillar of the next phase in Singapore’s education system would be having a global outlook.

The advantages of an overseas experience will help students achieve an expansive world-view and by getting them out of their comfort zone and experiencing other cultures, this will not only enrich their life experiences but also go a long way in terms of their personal development.

an out of the classroom experience

For this article, we interviewed Joel Fong, a final year student from the National University of Singapore (NUS). He will be sharing with us some of his invaluable experiences during his one year stay in Shanghai. This trip was part of NUS Business School’s Entrepreneurship programme.

Verztec: What is one thing you found that you appreciate about Singapore when you were there in Shanghai?
Joel: I can say that Singapore is a really safe place and my things are safe, one simple example is that I can leave my belongings at the table while I leave to order my food at a coffee shop and still expect my things to be there. However in places such as Shanghai or any other parts of the world, we definitely can’t take such things for granted, I experienced it first hand when my money was stolen while I was not paying attention.

Verztec: Did you experience culture shock when you there initially?
Joel: Yes definitely, language was a huge barrier for me, and when I was first there, I felt that there was a huge lack of information as I had too many options and limited ways of finding things out. An example would be issues such as buying stationery, in Singapore we would usually just go over to Popular or any neighborhood stationary store and prices for such stuff are usually around the same. But over there in Shanghai, there are simply too many places that sell the same things and the problem is, the prices vary so much, you wouldn’t know where is the best place and when you make a purchase you will start to ponder if the shop owner has actually ripped you off.

Verztec: After spending about a year in Shanghai, what do you think has changed in you?
Joel: I learned to be a lot more independent. Initially I did feel lost without my family around. A lot of things which I had depended on them previously, I had to learn to do it myself.  For example, things like planning my own finances. I had also understood the importance of networking, being alone in a foreign land, I had to learn how to to leverage on my network of contacts.

Verztec: What are some things you loved about being in a place like Shanghai?
Joel: Not only is Shanghai a very beautiful place, it presents plenty of opportunities for entrepreneurship, as there is so much more you can do. Another thing I love about Shanghai is the night life, it’s much more vibrant as compared to Singapore, i.e. there are much more options there, and not to mention, beer is cheap over there!

Verztec:  To conclude this interview, tell us some of the important events that have defined this overseas experience as a whole.
Joel : It would have to be the chance to work with the company which I was attached to during the course of the trip, from which I really learnt a lot from my colleagues there, their corporate culture and the way business is done there. The fact that I’m so far away from home and having to live away from my family would also be another thing that defined my overseas experience. All in all, this overseas experience has certainly pushed me beyond my comfort zone and I believe this sort of experiences can never be replicated in a classroom or campus.