From made in China to invented in China

The emergence of brand

Until very recently, China's reputation as a place for low-cost production and efficient distribution overshadowed any progress made by Chinese companies and their brands. Ironically, however, it is this intensity of manufacturing other company's brands that has enabled Chinese producers to learn quickly about brand building, hence the rapid emergence of "brand China", a place where innovation and creativity are now spreading exponentially.

Such a move from "made in China" to "invented in China" should come as no surprise given China's unique and marvelous 5,000-year history. Ancient China led the world many times and is replete with groundbreaking invention and innovation, such as the "five great inventions". Modern day examples of China "leading the world" include BYD's pioneering work with electric cars and the completion of more and more high-speed trains (the fastest in the world).

That this emergence will continue is beyond doubt, the issue is how and how quickly? Chinese history can also contribute here. China's huge number of festivals, for example the recent Dragon Boat Festival, as well as famous landmarks and rivers and mountains offer an excellent brand association opportunity. An opportunity that other countries do not have.

Other factor that should further accelerate the growth of branding are:

The emergence of second- and third-tier cities and brand opportunities. More Chinese consumers are becoming brand conscious in second and third-tier cities. Not only it is purchasing power spreading across these cities, but it is clear that consumers in these areas are even more brand conscious than those in first-tier cities. Second- and third-tier city consumers also appear to be more loyal to Chinese brands.

The perception of the Chinese brand is changing. All aspects of brand building have improved immensely among many Chinese companies, from product quality to more creative, emotional advertising and packaging, such as Li-Ning.

The Chinese economy remains robust. Despite uncertainty remaining in the US with high unemployment and Europe with debt crisis among many member states, China stands out as a strong and stable economy with continued growth prospects.

The emergence of the Chinese entrepreneur. Primarily among younger generations there is a discernible shift in social and cultural values from conservative, shy and task-oriented to outgoing, innovative and ambitious. This cultural change, perhaps more than any other factor, will propel "brand China" higher and higher.

The author is visiting professor of brand management at China Agricultural University and teaches marketing and management at Tsinghua University.