Brand building

"We had a group of Chinese CEOs at IMD recently and they take it very seriously. They understand they can't just keep killing each other on price," he says.

"It really is as simple about understanding the difference between a product and a brand. A product is functional and a brand is emotional. You buy shampoo because you have to wash your hair. You buy L'Oreal because you are worth it."

New technology, particularly digital media could play a role in China brands developing a greater global presence over the next few years. It provides a much faster and cheaper means of building and sustaining brands in global markets.

Zhang Tianbing, partner in international management consultants AT Kearney in Shanghai, says it should assist China brands to go global.

"What you are seeing is something like a sudden change to the eco system. The new technology, however, is bringing about a major change to the economic system, where you are seeing a new species emerge. It is enabling emerging market brands to make a major advance," he says.

Bastin at China Agriculture University says of a lack of a branding culture hasn't undermined the China economy so far since it is very much in its development phase, just a little over 30 years after reform and opening-up.

He believes brands could drive the next phase of the economic development of the country.

"I do think there is a major opportunity which Chinese companies haven't fully exploited. They have allowed Chinese brands to be associated with negative associations such as poor quality," he says.

"There are many positive attributes that Westerners consumers associate with the Chinese such as wisdom, innovation, advanced and intelligent, and I think Chinese companies can harness these."

Xiao Xiangyi contributed to this story.