Launching your brand into China

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B2B - Brand Strategy

China’s economy has grown at an unprecedented rate over the last 35 years, going from being one of the poorest countries to one of the richest countries in the world. It is estimated that China could become the largest economic system in the world in another 10 years. 

With a total population of 1.37 billion people, and the support from the government, China will migrate from an investment-driven model to a consumer-driven economic model. Only a few years ago China was looking for investment to develop the country but is now at a state where people’s lives are getting better and they consumer more products to satisfy their needs. Notably, the spending power of the Chinese middle class population is incredible. Most live in big cities, earn over £200,000 a year, and spend £50 billion in luxury goods per year in total (McKinsey & Company 2018). 

The population of the middle class is estimated to expand from 430 million today to 780 million by the mid-2020s, which will be the largest group of middle class consumers in the world (Foreign Policy 2018). This presents a significant commercial opportunity for brands to invest in the Chinese market and reap the benefits of reaching such a large and affluent consumer market.

How important is it for a brand to have a Chinese name? A culturally suitable Chinese name for brands is the foundation to break into the Chinese market. ‘Clothes make the man; saddle makes the horse.’ The Chinese idiom reveals how important it is to have an recognisable Chinese name for an international brand. The right Chinese name gives a positive impression and image for the brand and also helps consumers to familiarise themselves with it. (The Drum 2018)

It is a well-known fact that Chinese is one of the most difficult languages to learn, mainly because the pronunciation is not related to the writing. The same syllable can be pronounced with four different tones and each tone has a completely different meaning. Sometimes, even the same word may have different meanings when used in different phrases or sentences. For instance, ? pronounced as ‘ma’, means horse. ?? pronounced as ‘ma-hwu’, is translated into horse and tiger but the actual meaning is careless.

Moreover, the Chinese culture is shaped by its language, which is totally different from western cultures. This means that most Chinese people may have different values and tastes from western people. Chinese people enjoy the process of finding out the deeper meaning behind words, it is therefore important that international brands take the time to thoroughly research a name that has meaning aligned to their brand values. 

When choosing a Chinese name for your brand, it is not about just using translated Chinese characters, but also picking Chinese characters that represent the brand’s identity to potential customers in a culturally suitable way. Also, it is worth to note that only 10 million out of 1.37 billion Chinese people are able to understand English (Telegraph, 2017).

How would you market your brand in China with a language that most Chinese people don’t understand? 

Every international brand that is successful in China has a tailored Chinese name. Coca Cola is one of the most well-known examples that showcases how important it is to pick the right Chinese name for a brand. When Coca Cola was first launched in China, it was called ‘??? ?’ (Ke-dou-ken-la), which means ‘tadpole eats wax’ (The Drum 2018). Since no one would buy a drink with this name the sales figures were terrible at the start. 

In order to increase sales, Coca Cola invested in a new Chinese name; ‘ ????’ (Ke-kou-ke-le), which means ‘tasty and joyful’. This is a perfect example of transcreation (vs. translation) as it is similar to the English language brand proposition, as well as reminding of Chinese poetry. As a result of the name change, the sales increased significantly for Coca Cola. 

Another successful example is McDonalds. Its Chinese name is ‘???’ (Mai-dang-lao), with a similar pronunciation to the American one. But the meaning of the name matches the traditional Chinese culture which is ‘foods come from hardworking’.

Here are some helpful tips for brands when developing a Chinese name:

1) Choose Chinese characters that have a similar pronunciation as the original name but also ensure that the combination of these Chinese characters have no negative meaning. For example, ‘??’ (ou-di) is the Chinese name of Audi even though there is no meaning behind the combination of these two certain characters.

2) Identify meaningful and culturally suitable Chinese characters that can reflect the brand’s values. This is a good way for Chinese people to understand and remember the brand.

3) In conclusion, the best way for a brand to create a Chinese name is to pick meaningful Chinese characters that has similar pronunciation as the original brand name. However, it is quite challenging to create a Chinese brand name like this. If a brand managed to pick a Chinese name with similar pronunciation and a symbolic meaning, that would be the perfect way to break into the Chinese market.

All in all, a good Chinese name can add positive values to a brand and help companies break into the Chinese market while also building up an impressive brand image.