China needs to build global brands

After the Russia-Ukraine conflict broke out, some transnational corporations have re-evaluated their business operations in Russia. Some have suspended all their operations in the country, and some have decided to withdraw from Russia completely. Most of the corporations provide life necessities, hi-tech equipment and services, and they collectively dominate the global market in their respective fields.

These companies, along with their mother countries' control over the Society for Worldwide Interbank Financial Telecommunication, or SWIFT, and the global financial system, constitute an integral part of the West's hold on power. And it is through these commodities, equipment and services that the West spreads its lifestyle and values to the world.

Chinese enterprises should draw their lessons from that. The companies should not only intensify their development in the hi-tech field, but also seek breakthroughs in traditional industries, achieving a high level of self-reliance with international competitiveness.

For a long time, Made in China has meant original equipment manufacturer for Western brands. In recent years, Chinese companies have started exporting cellphones, drones and electric vehicles, etc. But they still lag behind Western companies in the production of food and beverage, clothing, retail, entertainment, daily chemical and other fields.

China's economy is the second largest in the world, and its trade is the largest in the world. However, it needs more well-known brands to transform scale to soft power. That certain products and services are popular in international markets is because of the fact that they can satisfy consumer needs and preferences.

Some Chinese companies do not want to spend money on branding, market research and product innovation. Instead, they focus on cost saving and low-level marketing, and now there appears a trend of cost saving through automation and livestreaming marketing. The unwillingness of Chinese enterprises to invest in market research, branding and product innovation prevents them from going global.

On the whole, Chinese enterprises still lag behind in their management, standards, global vision and international marketing. As the country is promoting the rule of law and improving its business environment, Chinese enterprises should take advantage of this opportunity to make up their shortcomings.