How do Chinese brands navigate "headwinds" in their overseas expansion?
After experiencing the sprouting, exploration, and growth stages, Chinese brands going global are now in the innovative development phase. In this new stage of development, how can Chinese brands effectively address new challenges and seize new opportunities for growth? The "Report on the Development of Chinese Brands Going Global," released by the Institute of E-commerce at the Ministry of Commerce Research Institute during the 134th Canton Fair, provides relevant observations.
Director of the Institute of E-commerce at the Ministry of Commerce Research Institute, Du Guochen, stated that during the innovation period of brand globalization (since the year), Chinese enterprises have placed greater emphasis on brand building, marketing, and sustainable development. In terms of brand building and marketing, Chinese enterprises have enhanced product quality, crafted brand stories, and strengthened marketing efforts, integrating better into local markets through diverse marketing methods, striving to increase brand awareness and reputation in overseas markets. Against the backdrop of sustainable development becoming a global consensus, Chinese enterprises going global actively promote green production, energy conservation, emissions reduction, and social responsibility initiatives, achieving a win-win situation for economic and social benefits.
The report on new challenges and opportunities highlights the following issues faced by Chinese brands in their overseas expansion: cultural and customs differences in overseas markets increase the difficulty of brand building. Different countries and regions have their unique cultural backgrounds and consumption habits, and there are significant differences between domestic and overseas markets. Chinese brands, deeply influenced by habitual thinking, focus more on leveraging mainstream international social media platforms for promotion, often overlooking the impact of outdoor advertising and local media. However, unlike the European and American markets, local media and outdoor advertising in markets like the Middle East and Russia are often more effective. Continuous adjustments in external demand increase the pressure of going global. The current global economic environment is volatile, with intensified international trade risks and uncertainties, leading to continuous adjustments in external demand and increasing the "headwinds" for Chinese brands going global. Insufficient brand marketing capabilities hinder the dissemination of the overseas image. The annual (20th) "World's 500 Most Influential Brands" compiled by the World Brand Lab ( shows that in 2022, the number of Chinese brands selected (45) surpassed Japan (44) for the first time, ranking third globally. Although the overall performance of Chinese brands has been improving in terms of the number of selected brands and growth trends, there is a relative lack of world-class brands in China based on the ranking distribution. In terms of industry distribution, there is still significant room for development in advanced manufacturing brands. As international marketing trends continue to evolve, more and more Chinese companies going global need to match marketing strategies that are more insightful, creative, and effective, aiming to enhance global brand awareness while pursuing the goal of brand effectiveness integration.
In terms of new opportunities for going global, the report indicates: Enterprises are diversifying their marketing methods and accelerating innovation in their global expansion strategies. Chinese companies venturing overseas are gradually building a diversified sales network that integrates online and offline channels, leveraging overseas media matrices to accumulate user traffic within private domains, thereby enhancing business stability and sales flexibility. Statistics show that China currently ranks second globally in digital advertising expenditure, with a higher proportion of mobile digital advertising. Chinese brands have accumulated rich practices and experiences in e-commerce marketing, social media marketing, and mobile marketing, providing new ideas and tools for brand competition and development both domestically and internationally. The growing online demand in overseas markets offers a vast arena for Chinese enterprises to expand globally. The global e-commerce transaction scale is continuously expanding, expected to grow from . trillion dollars in a certain year to . trillion dollars in another year, with a compound annual growth rate potentially reaching .%. The improvement in domestic product quality has solidified the momentum for brand expansion overseas. The significant growth in exports of high-value-added products such as electric passenger vehicles, lithium batteries, and solar cells has effectively enhanced the image of Chinese manufacturing abroad.
New Practices Pave the Way for New Futures: As companies venture abroad, they are also seeking globalization strategies that align with their unique characteristics. Against the backdrop of intensifying global market competition, digital transformation has become a crucial driving force for traditional foreign trade brands to go global. These brands are integrating emerging technologies and concepts into their operational strategies, enhancing their market competitiveness and brand influence through digital transformation, globalized supply chains, sustainability, and cross-industry collaboration. Accurate market positioning is one of the key factors for the success of cross-border e-commerce brands. These brands leverage precise market positioning, multi-channel sales, and optimized user experiences to actively expand international markets using internet technology and e-commerce platforms. Traditional brand manufacturers enhance their international market competitiveness by conducting in-depth market research, adopting flexible brand localization strategies, undergoing comprehensive digital transformation, and implementing effective supply chain management to meet the needs of different markets.
To accelerate the promotion of Chinese brands going global, Du Guochen suggests that enterprises and the government work together. On the government side, support the development of new marketing models, enhance the brand awareness of outbound enterprises, increase fiscal and financial support, and improve the training of talent for brand export. On the enterprise side, focus on studying the marketing habits of target markets, implement localized marketing strategies and media layouts, actively integrate into local brand building, and treat brand and value construction as a long-term strategic investment to be executed systematically. Use brand power to expand price margins, enrich the brand asset library, and invest in high-quality content production.