Chinese brands learn how to play market

Narrative needed

Despite the fast growth, a report last month by the consultancy Brunswick concluded that Chinese companies still have significant capacity to boost brand values by further communicating their mission and core philosophy more proactively, especially as they engage increasingly in international activities amid trade friction.

The report, compiled through surveying 7,500 members of the public in 18 countries where Chinese companies had significant investments last year, found that although 67 percent of respondents had heard information about Chinese companies over the past year, only 12 percent had heard details directly from them.

The report found that the more information a company shares about itself with the public, the more likely it is to generate a favorable public perception. Of the respondents who said they had heard "a lot" about Chinese companies, 80 percent were favorable toward them and 83 percent trusted them.

Rory Macpherson, a partner at Brunswick Group, said, "There is a clear need to develop a purpose-driven narrative that is supported by communications activities in global markets where Chinese companies are operating or eyeing expansion."

Public perception of Chinese companies also determines the success rate of their overseas acquisitions, which the companies view as a faster route to markets compared to organic investments.

Peter Zysk, a director of Brunswick Group, said: "Public perception of Chinese companies is hugely important, because sometimes this can determine if a deal can happen, and can impact on deal prices. It can also impact on the regulatory approval process and the success of post-merger integration."

James Hebbert, managing director of marketing company Hylink UK, said that fundamentally there has been a shift in mindset as Chinese companies increasingly recognize the importance and consistency of brand strategy, especially as "digital and affordable travel is making the world smaller".

For example, Chinese carmaker BYD has linked its brand image with sustainability and innovation by focusing on supplying electric taxis and buses in 300 cities in more than 50 countries and regions. The endorsement its effort has received from various governments has become "a badge of confidence" for its sustainability image, Hebbert said.

A BYD spokesman said the company has also invested in many factories in overseas markets such as the United States, Brazil, Hungary and France as a part of its efforts to increase global visibility and demonstrate commitment. "We're striving to build an international brand instead of being perceived as a Chinese brand," the spokesman said.

Chinese mobile payment platform Alipay has backed its brand image of "finlife"－a term the company coined to suggest the accessibility of fintech, or financial technology, in everyday life－by actively delivering new solutions to make digital payment more accessible overseas.

Alexander Yin, chief financial officer at TGC, the parent of ePassi, a Finnish electronic payment company collaborating with Alipay, said, "Joint efforts with Alipay opened my eyes to a new world."

When Alipay collaborated with ePassi to roll out its payment terminals in Finland, the two companies created a solution to introduce e-payment technology to Finnish taxis for the first time. Alipay users can scan a QR code sticker in each taxi, manually key in the amount they need to pay, and this sends payment directly to the ePassi accounts of the cab company.

Alipay has worked with ePassi to create solutions to satisfy the needs of Finnish shops, restaurants, hotels and airlines. The increasing popularity of Alipay in the country has become a positive enforcement of its "finlife" brand image.