Analysis Of The Internationalization Strategy Of Chinese Brands: A Case Of Huawei

The past 20 years have seen a massive redistribution of economic power to the emerging economies, especially China. But so far there has been no comparable redistribution of brand power. Despite China being only second to the US in terms of the number of companies Fortune magazine’s list of the world’s largest 500 companies in terms of sales revenue, only one company, Huawei, has actually made it into Interbrand’s list of the world’s top 100 brands in 2014.This thesis studies various models and strategies and examines in detail the historical reasons and progressions, challenges and obstacles, internal and external factors behind this phenomenon and suggests a way forward and possible future trends and considerations. The research covers mainly academic publications on the topic but also includes interviews of branding and marketing specialists and experts, statistical and empirical analysis of the current and historical situation, comparison of successful and unsuccessful approaches to brand internationalization by various companies, a global survey of emerging and developed market perceptions of Chinese brands, a SWOT analysis and an in-depth case study of Huawei’s rise to global prominence.Given current global conditions, Chinese companies are in a much stronger position than ever before to undertake the difficult and expensive process of creating global brands. However, the process itself is fraught with difficulties and they will need more time, money, investment in R&D and greater management knowledge and cultural understanding and sophistication to reach the heart and minds of consumers with their products.This thesis finds that there are still a number of factors preventing Chinese companies and brands from achieving success in international markets and creating truly global brands including problems dealing with government regulations in overseas markets; limited exposure of Chinese managers to global markets and Western corporate culture; lack of understanding of the needs of overseas consumers; need to adapt to the contractual system of the West rather than the guanxi system of China when doing business overseas; failure to engage in Corporate Social Responsibility in overseas markets; and last but not least, failure to invest enough money in overseas operation and marketing; and short-term thinking, as well as a general bad image problem of China and Chinese products in the eyes of Western consumers.This last point is particularly important. A good national image is crucial to how a brand is received by international consumers. The results of the survey in particular, but also the interviews and case study, all suggest that more efforts must be made to improve how Chinese companies are perceived in the West. Without greater clarity about how Chinese government agencies and businesses are connected in China, foreign governments and societies will remain mistrustful of the underlying motivations of Chinese firms entering their markets. Like other commentators, this study also concludes that it will take a generation of new leaders from both sides and from government, business, and society to tackle longstanding misperceptions and increase mutual understanding.