What enterprises lack most when going global is brand

1. Chinese brands are not strong
Li Wuwei (Vice Chairman of the National Committee of the Chinese People's Political Consultative Conference): Compared with international famous brands, Chinese enterprise brands have certain gaps in terms of business value, market share, and technology fields. How to establish a high-quality image for Chinese brands and quickly reverse the global consumers' impression that "Chinese-made products are cheap and of poor quality" has become one of the toughest problems Chinese entrepreneurs need to consider. In fact, a major dilemma for Chinese brands in the process of internationalization is the lack of international talents. The talents we cultivate often lack international experience, and if we introduce or parachute talents, enterprises are not very confident, so the talent issue has become a major obstacle for brand expansion overseas.
Zhang Wenkui (Deputy Director of the Enterprise Research Institute, Development Research Center of the State Council): The World Brand Lab compiles the list of the world's top 500 brands every year. Which countries do these brands come from? In the 2010 list of the world's top 500 brands, the United States alone occupied 237 spots, followed by France with 47, Japan with 41, the United Kingdom with 40, then Germany, Switzerland, and China ranked seventh with only 17 brands on the list.
It can be said that brands correspond to a certain extent with national economic strength. The United States has the strongest economic power, with a total economy of 15 trillion USD, accounting for nearly half of the 500 global brands. However, China is already the world's second-largest economy, but has only 17 global brands, among which the first is CCTV, the second is China Mobile, the third is Industrial and Commercial Bank of China, etc. Strictly speaking, these are not enterprise brands; they do not conquer the world by product or service quality but are endowed with brand charm by the state. Therefore, the 17 national brands on the list do not actually have such strong power.
He Weiwen (Vice Chairman of the Global SME Alliance): We often say enterprises should grow bigger and stronger. This is true but not comprehensive; the core is to be strong, not necessarily the biggest. Brands are certainly products, but first and foremost, they are enterprises. If the enterprise is very reputable and reliable, the products can naturally enter the market. We should vigorously encourage private enterprises to build their own brands. Therefore, shaping product brands cannot rely on enterprises under monopoly backgrounds; monopolies cannot produce world brands.
Moreover, Chinese products have a low-end image, poor quality, and bad reputation, with serious counterfeit and inferior product issues. In 2008, Japanese customs seized 26,415 counterfeit and inferior products, among which 21,529 were Chinese products, accounting for 81.5%. Many Western countries regard Chinese products as fake, cheap, and inferior at first glance. After the lead-exceeding incident in Foshan toys, the US House of Representatives called "Made in China" a warning sign. This is not the mainstream of Chinese enterprises, nor does it represent all enterprises and products, but it is enough to destroy the entire Chinese seller market.

2. If enterprises do not go out, brands will hardly go out
Long Yongtu (Chief Negotiator for China's WTO accession, former Secretary-General of the Boao Forum for Asia): In the second half of last year, I had a meeting with the mayor of Chicago. He led a large delegation to China to attract investment, hoping Chinese enterprises would invest in Chicago. It is rare for Americans to come to China for investment promotion, which shows that the US and other Western developed countries are preparing to welcome Chinese enterprises. Enterprises are the carriers of brands; if Chinese enterprises do not go out, Chinese brands will hardly go out.
Facing such a new international environment, we should have confidence to strengthen the great strategy of Chinese enterprises and brands going global. Chinese entrepreneurs should have a premonition and see this direction: whoever gets the market wins the world; whoever gets the brand gets the market. There is an old saying, "A weak country has no diplomacy," which can be extended to "a weak country has no brand." A weak and economically inactive country cannot nurture brands recognized internationally. With the enhancement of China's national strength and influence, Chinese brands already have the most basic conditions for overseas expansion.
Wang Yong (Secretary-General of the Brand China Industry Alliance): We should correctly view the gap between Chinese and foreign brands. Currently, the gap between Chinese and American brands is large, but the US has had a market economy for over 100 years since the Civil War, while we have only experienced about 30 years of market economy. Comparing 30 years with over 100 years, there is a huge gap. Having a gap is normal, but we should also see that our development speed is fast. The achievements in the automotive industry in 5 years are equivalent to those in the past 50 years, which is recognized domestically and internationally. Therefore, first, we must face this gap; second, as Chinese people, especially those living and working overseas, we should support China's independent intellectual property brands. American diplomats buy American products in China, and Koreans do not buy Chinese products. A child does not despise his mother’s flaws; why don’t Chinese people believe in independent brands?
He Weiwen: To create world or international brands, it is not at the enterprise or product level but at the national level; not at the technical level but at the strategic level. To promote brand building, we should implement a nationwide system. First, vigorously improve the grade of our products and upgrade and transform massively; second, comprehensively change the social environment of rampant counterfeit, inferior, and infringing products. We should strongly advocate an honest society so that others feel China is determined and transparent, which can restore trust in Chinese products.
Having a national strategy is not enough; when going global, we must localize and use all international resources, standing on the shoulders of giants, not closing the door to practice hard. At the same time, we should cooperate in design, design good products, and create value through market research. Furthermore, design alone is not enough; we also need cooperative R&D, marketing, strategic alliances, and even mergers and acquisitions. Professional operation and brand operation cannot be done by small-scale efforts, a few fellow townsmen, or acquaintances doing small tricks, or printing some unprofessional promotional materials. We must use professional media and systematic operations to truly build and maintain our international brands.

3. Going out does not equal internationalization
Liu Ge (Commentator for CCTV's "Today's Observation"): If we look back a few years to think about the internationalization of Chinese enterprises, Haier and Lenovo's path was the future direction for Chinese enterprises. Starting by working for others, gradually forming their own brands, then through acquisitions, and finally opening factories abroad, naturally they would follow a Japanese-style brand path. After so many years, I find this path seems unfeasible. The international development of enterprises like Lenovo and Haier is far slower than imagined. We now need to rethink whether this path of Chinese enterprise brand internationalization is feasible.
So, what is the internationalization of Chinese enterprises? The island nation attribute and its population limitations determine that Japan must take the path of outward export, but does a Chinese enterprise necessarily have to take this path? Therefore, I think a new definition of internationalization for Chinese enterprises is needed. In other words, internationalization and going out are two different concepts. The so-called "going out" and the so-called "branding" are only one part of the internationalization of Chinese enterprises, and not even the largest part. Internationalization also includes talent internationalization, scientific research internationalization, operational internationalization, management internationalization, etc. Internationalization is not for the sake of going out, but for bringing in to improve the overall level of the Chinese economy.

4. World-class brands are based on world-class enterprises
Zhang Wenkui: How can we create world-class brands? There must be world-class enterprises to support world-class brands. In other words, world-class brands are based on world-class enterprises. How can one become a world-class enterprise? It can be simply summarized in four points: first is scale; second is value. Enterprises may be very large in scale, but if they do not create value, just large-scale input and output, that is not acceptable. They must create value for shareholders, customers, employees, and society as a whole; third is brand. A strong brand is necessary to become a world-class enterprise; fourth is heritage. There must be historical accumulation, and the brand must withstand long-term practical tests and be passed down through enterprise inheritance.
Long Yongtu: What is a brand? A brand is "quality plus culture." First, there must be a reputable product, combined with soft power and soft influence. The going out of Chinese enterprises, including Chinese brands, should not be seen merely as economic and trade matters, but as issues related to national image. Image is soft power, and cultural soft power should be strengthened as an important aspect of the entire process of Chinese enterprises and brands going out.
Secondly, it is to follow international rules and norms. The reason China’s accession to the WTO received global attention is because we promised the world to conduct foreign economic and trade activities according to rules. A country that abides by rules, no matter how strong, will not be regarded as a threat by other countries. Therefore, another aspect of shaping image is to make commitments and truly abide by international rules.
Zhou Haijiang (President of Hongdou Group Co., Ltd.): Regarding overseas expansion, the most critical thing is to elevate the independent brand strategy to a national strategy. Many Chinese industries participate in the international industrial chain division of labor, but none are proactive. Brand-based processing is the highest realm. To master the initiative and dominance in international division of labor, we must build a batch of independent brands. Independent brands are effective carriers for achieving independent innovation and actively participating in international division of labor. Therefore, independent brands should be elevated to national brands. Only by taking independent brands as wings can Chinese manufacturing fly higher and farther.
Brands have two major elements: technological content and cultural content. To build cultural content, the country must continuously develop the cultural industry and create cultural brands. To build technological content, enterprises should focus on three main factors: talent, platform, and investment—these core elements of innovation capability—to improve independent technological content.

5. Independent brands must unite for mutual support overseas
He Weiwen: To build world brands, one must win in competition, not rely on special policies from the state, but on solid competition. At the same time, social responsibility is also very important. To create truly world-class brands internationally, we must pay attention to the real development needs of local social economies, solve their problems, and truly establish credibility locally. Sany Heavy Industry’s crane rescued Chilean miners, leaving a good reputation worldwide; COSCO Group was commended for solving many American jobs in the United States.
Secondly, building world brands should not rely on the strength of one company alone, but also on brand alliances. HP computers contain Intel chips; the HP and Intel brands together form a stronger brand. Chevron gas stations are a brand, McDonald's is a brand, and together they form a joint brand.
Wang Yong: We should also pay attention to uniting for mutual support when promoting brands. After Chinese independent brands go out, many enterprises promote their brands individually, one by one. The concepts of points, lines, and surfaces are different. A single chopstick breaks easily, but a bundle of chopsticks does not. When Chinese enterprises go out, having a team and a complete lineup makes it easier for others to perceive Chinese brands as a group.
Secondly, we must help people break their prejudice against independent brands. In 2005, we conducted an activity called "China Independent Brand Automobile Ten Thousand Mile Journey" from Beijing to Hong Kong. People in Hong Kong asked, "Where was this car produced?" We told them it was an independent brand car from the mainland, worth over a hundred thousand yuan, but they did not believe it. It shows that many consumers still have prejudice against independent brands. When we buy high-end clothing in malls, we find that 100% are foreign brands. If we ask to buy an independent brand product, the sales clerk will tell us it is an independent brand—registered abroad but produced in Guangzhou. In fact, 80% of them are fake brands. Is this a sales habit problem or a problem of Chinese enterprises? We need to seriously summarize and think about it.