CEIBS President (European) Dominique Turpin Speaks at 10th China Brand Economy (Shanghai) Forum
May 10, 2024. Shanghai - Chinese companies are well on their way to transitioning from competing internationally on price to competing on superior technology and quality, but must still build powerful brands if they hope to make an impact on the global stage, CEIBS President (European) Professor Dominique Turpin said at a forum in Shanghai today.
The 10th China Brand Economy (Shanghai) Forum was held at the Jinjiang Auditorium in Shanghai as part of "China Brand Day", hosted by the China Federation of Industrial Economics, the Shanghai Municipal Commission of Economy and Information Technology, the Shanghai Municipal Intellectual Property Office, and the Shanghai Corporate Culture and Brand Research Institute. Professor Turpin attended the forum to deliver a keynote speech outlining how and why Chinese enterprises going abroad should strive to build internationally competitive brands.
In the speech, entitled “Why does China need to develop and nurture global brands? And how to do it?”, Professor Turpin noted that, as Chinese brands go global, they are in the process of a necessary transition from competing on price to competing on innovation and quality, with “Made in China” slowly ceasing to be synonymous with functional, low cost products.
“What is a challenge, I would say, for Chinese brands going overseas is that in the past, ‘Made in China’ meant cheap”, Profess Turpin said. “It's an emotional barrier. But today, Chinese companies have to break it, and we are doing that thanks to technology, because Chinese brands are increasingly taking advantage of technology to establish differentiation.” Differentiation, Professor Turpin argued, is key to a successful brand, which in turn is vital for Chinese companies looking to find success both domestically and internationally.
Professor Turpin went on to outline the five key elements of a successful brand strategy: establishing a clear identity, proactive innovation, creating an emotional link with customers, maintaining consistent messaging, and connecting regularly with customers in order to avoid complacency.
Following a detailed expansion on these points, Professor Turpin illustrated their importance by telling the story of Brazilian footwear company Havaianas, and the lessons that it holds for Chinese brands looking to go global. The brand, Professor Turpin said, went from a cheap and purely functional maker of a simple product to a premium brand with a presence in 65 countries, all at little cost, by utilising product innovation, emotional connection, and creative branding and marketing initiatives, setting an example for Chinese brands looking to make an impact abroad.
In concluding the story, Professor Turpin said, “So, if you don't know what Chinese companies can learn from this particular example, remember: commodity is not a fatality. You can differentiate anything. Sugar, electricity, anything. The only limit is imagination.”
During the forum, Professor Turpin also spoke with local media outlets, offering further insights into key strategies that Chinese companies should adopt as they enter a competitive global landscape. He pointed out that achieving global brand recognition requires not only international cooperation, but also a deep understanding of the local market. Establishing local value and distribution networks is essential to effectively meet the specific needs of customers.
Professor Turpin also emphasized the key role of partnerships in coping with market complexity and enriching product portfolios. He believes that this strategy not only helps to maintain competitive advantage, but also ensures that companies can adapt to changing customer needs and market trends, especially in an increasingly interconnected world. Referring to CEIBS' history of helping global brands develop, Professor Turpin shared that the school, jointly established by the Chinese government and the European Union, has always adhered to the positioning of "Chinese depth, global breadth", providing enterprises with education that integrates practical knowledge with the Chinese domestic market and global business perspectives.