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Economic boom produces more domestic brands

(China Daily)
Updated: 2008-08-11 16:33

China's success story has helped many major multinational brands thrive in the world's most populous country and the fastest-growing economy.

The economic boom has also produced a number of high-profile domestic brands, though many have yet to make a big splash outside the country because building a brand overseas is costly and takes time.

However, they will gain significant exposure to the foreigners who are in the country this month.

Here is a look at some of the strongest Chinese consumer brands that will be making their mark with foreigners and Chinese alike:

Tsingtao beer: Brewed for the world

Tsingtao beer is not only the pride of its hometown by the sea in Shandong province, but also one of the best, if not the best, known brand names in the nation. At bars and restaurants around the country, many Chinese beer aficionados would rather drink tea if their beloved Tsingtao is not served.

Unsurprisingly, the company, Tsingtao Brewery, in Qingdao, has consistently outsold any other competitor. Last year, the company sold 5.05 billion liters of beer, most of which was consumed in China, the world's largest producer and consumer of the drink. Total beer consumption in China was 39 billion liters in 2007, up nearly 14 percent from a year before.

Founded by a German - British brewing company in 1903 with equipment and raw materials imported from Germany, Tsingtao has evolved into a large enterprise listed on the Shanghai and Hong Kong stock exchanges. The brewery posted an adjusted gross profit of 1 billion yuan on turnover of 13.7 billion yuan. Of the total turnover, 34.59 million yuan was derived from exports.

As a sponsor of the Beijing 2008 Olympic Games, Tsingtao has secured the right to sell beer in designated Olympics facilities. Qingdao, the location of Olympic Sailing Center, is also the location of Tsingtao beer headquarters. In the city center of Qingdao, a unique 1,000-m long beer street built by 100-year-old Tsingtao beer, has more than 40 different styles of beer bars. After watching the sailing competition, the public and foreign tourists can come to the beer street to enjoy the century-old unique cultural flavor of Tsingtao beer.

Quanjude: Peking duck pioneer

There is a Chinese saying: a trip to Beijing is not complete if you miss seeing the Great Wall or dining on a roast duck. To its devotees, Peking roast duck embodies the essence of Chinese cuisine, culture and customs.

The recognized master of the duck is Quanjude, an eatery established in 1864 during the Qing dynasty (1644-1911), the last imperial rulers of China.

In the following 136 years, the Quanjude expanded into a full service eatery with branches in Beijing, Shanghai, Hong Kong, and many other cities. But it is still famous for its roast duck, prepared according to the same original procedure that demands precise temperature and timing.

In 2007, sales revenue of Quanjude is 917 million yuan.

Last November, Quanjude went public on the Shenzhen Stock Exchange. On the first trading day, its shares closed at 42.3 yuan, up 271.4 percent compared with its issuing price of 11.39 yuan. Currently its shares are hovering a about 50 yuan.

Lenovo: Think bigger

From a former computer import agent, Lenovo has grown into China's largest and the world's fourth largest computer manufacturer.

Lenovo completed the acquisition of IBM's PC-making business in 2005, making it an international company holding a world-renowned brand. That acqusition, perhaps one of the most successful deals by Chinese companies in overseas markets, has greatly boosted Lenovo's profile.

The China-based computer giant posted a net profit of $485 million on turnover of $13 billion in the latest financial year.

It has been outpacing its rivals. During the year ending March 31, 2008, Lenovo gained 0.4 percentage points in its market share, accounting for approximately 7.6 percent of the global market.

Lenovo is a Worldwide Olympic Partner and the official computing equipment provider for the Beijing 2008 Olympic Games.

More than 30,000 units of equipment including Lenovo desktop and notebook PCs, monitors and servers are supporting the Olympic Games. That means Lenovo will help manage virtually every facet of the Gaming venues, from gathering and storing participant data to displaying the scores, all the while giving significant exposure to the audience.

Lenovo equipment will support 56 venues across seven cities for the Olympics. It has opened six Internet lounges in the Olympic Village. The lounges, equipped with 260 computers, are available to the athletes and officials free of charge.

Yili: A big cash cow

Yili, in Inner Mongolia, China's top dairy producer and one of the best-known brands in the country, had humble beginnings in a small factory with total assets of only 410,000 yuan in 1993.

Last year, the Shanghai-listed company recorded nearly 20 billion yuan in revenue. It was ranked No 1 in China's dairy industry with a brand value of 16.73 billion yuan in 2007 by World Brand Lab, one of the world's top three brand assessment institutes.

The firm also sells its products in 20 countries and regions including Singapore, Malaysia, the Philippines and Oman.

Yili is the only milk sponsor of the Beijing Olympics.

Bank of China: Financial gold

After Beijing won the bid to host the Olympics in 2001, Bank of China became the sole banking partner of the Beijing 2008 Olympics and Paralympics. From Olympic ticket sales to individual accounts for non-residents, Bank of China provided a range of services to support the Olympic Games.

To address the financial service demand in the core Olympics zone, Bank of China has set up temporary branches in Athletes' Village, Media Village, IBOC, MPC, and IOC Headquarters Hotel and fitted these branches with wheelchair ramps, lower counters and barrier-free signs to allow better access for all customers.

To assist foreign institutions and individuals that need financial services during the Games, the Bank, at the request of BOCOG and with the support of the People's Bank of China (China's central bank) and State Administration of Foreign Exchange, launched an "Olympics Temporary Accounts" service for qualifying non-residents.

The bank's call center at 95566 offers multi-lingual services in English, French, Japanese, Korean and Spanish, all of which strengthens BOC's global brand value.