Enlightenment of Globalization of Huawei & Huawei : How to Build China Brand at Overseas
Source: www.yicai.com View: 256 Date: 2015-11-23

"Behind every bright phenomenon, always with silent efforts", in the view of the President of the Marketing Department of HUAWEI TECHNOLOGIES CO., LTD., which is the second telecommunication equipment supplier in the world, Zhang Hongxi, currently Huawei carries out businesses in over 100 countries in the world and takes a place among the top 100 of Best Global Brands, however, it is not an easy thing to build a brand at overseas.

In the ranking list of the Sixteenth Best Global Brands latest released by Interbrand, the third-party consulting institution, Huawei became the first China Brand of being on the list of top 100 of Best Global Brands last year, the brand value is 4.952 billion USD this year, its ranking is up to the eighty-eighteenth; the brand value of Lenovo is 4.114 billion USD this year, and it is the second China Brand being on the ranking list of Best Global Brands of Interbrand after Huawei.

Under the background of China economy gradually moving towards the world, more and more China brands are strongly interested in becoming the global brands, but it is not easy to let overseas consumers accept China brands, there are only two China brands being of the top 100 of Best Global Brands at present, which does not match up with the position of the world's second largest economy.

To struggle overseas, how do Huawei and Lenovo, this kind of outstanding multinational corporations in China, build brand image at overseas, and successfully let the foreigners love China brands?

Three Traps of Overseas Brand Construction

"It is hard to expand at overseas at the beginning, it, for sure, will face problems of popularity, recognition, reputation, for a company, this is the thing that will naturally occur no matter going towards the new market or the new field." Zhang Hongxi said to the reporter in an exclusive interview recently.

Huawei, founded in 1988, has three business sectors which are operator network, enterprise business and consumer business, it begins to go towards the world after being with ten years' accumulation at domestic. Zhang Hongxi says, "These problems which appeared ten years ago are still existing now, because Huawei focused on the field of operators ten years ago, it now involves the fields of enterprise network and mobile phone, certainly with more experience."

"Once we recognize this rule, we will carry on in accordance with the rule." Zhang Hongxi reveals, around the year of 2000, Huawei needed to solve the problem of cognition, taken the measure of "Inviting customers, and going out" at that time, on one hand, to invite customers as far as possible, including the partners visiting China, because what you hear about may be false, what you see is true, if two sides did not meet each other, then they didn't have favorable impression with each other; "Going out" is to take out the products and services, and let others see.

In his view, facing the challenge, it will certainly be able to do a good job when adhering to really putting the customers in mind, "The most important thing is to make internal efforts well, deliver the core values to the customers, partners, employees in order to let the core values be really cognized, accepted, and can be experienced, this is the core of making brands, certainly it also needs time."

The General Manager of Interbrand Yao Chenggang, who has observed the overseas expansion of China enterprises for a long term, also believes that, in the process of overseas development of most Chinese enterprises, there exists some common problems on the aspects of creating the clarity of brand lasting development, and market reaction capacity.

"First of all, the brand is from the internal to the external, but a lot of Chinese enterprises try to solve all the brand problems by using methods of dissemination." Yao Chenggang says, some enterprises will primarily disseminate how to do the brands, but actually it may not be done; the inside of enterprise also has traditional thoughts: to produce one product, find ways to sell it, rather than really focus on the customers to improve the entire own business process and reconstruct own KPI index.

Next, it is no longer the simple competition on the level of products at the present era, enterprises need to lay emphasis on the richness of brand experience. Yao Chenggang finds out that many enterprises distribute the brand experience to different functional departments, each department only focuses on its own field, "It should center on the brand value and start to reconstruct, break the barriers between each department, together think about what core brand experience shall be created for the users".

Then, in addition to make the product performance well, whether the brand could bring a kind of perceptual expectation or not, whether it could let the users have expectations about the brand or not, rather than the products. Expectations for products, for example, the mobile phone products are in a wave maybe in six months to nine months, you have to expect the next hot items, like the gambling-oriented growth; but the expectations for the brand, taking the Apple as an example, consumers will forever buy the next generation of iPhone.

Brand Construction Is a Process from the Internal to the External

One of the biggest problems met by Chinese enterprises which go out to expand overseas market is that some consumers of overseas countries may have a traditional impression of "Low quality, and low price" on Chinese products, how to deliver the brand value to the overseas consumers? And how to land their own brand values to the local places on the aspects of products, services, enterprise culture?

 “The brand construction of Chinese enterprises in overseas market is a process from the internal to the external." Vice President of Lenovo & CMO of China region Wang Chuandong tells the reporter in an exclusive interview. In the past ten years, Lenovo made a Chinese enterprise into a multinational enterprise with its business spreading all over the world through global acquisitions and business innovation, in 2014/2015 fiscal year, Lenovo's overseas market revenue has accounted for 68%.

First of all, the product is eventually to the user's hands, when the quality is accepted, the concept of brand will be popular. Wang Chuandong says, "In the past, China is the world's factory, mainly focuses on the manufacturing industry, many local products are actually of original equipment manufacturer, the brand awareness of consumers and enterprises was not keen at that time, now Chinese consumers' pursuit of the brand has qualitative change, the enterprises need to adapt to the users' change, and to promote the quality of products and the value of brand.

Next, "How to create brand with the good products, this is more important", Wang Chuandong says, the products can be measured by sales, but the value of brand is unlimited for the promotion of products, and for the promotion of integral market value of enterprise. In fact, there are many domestic products no less than foreign design and quality, and there are also many domestic products of original equipment manufacturer sold by other brands at overseas, with strong added value, but the price of the same product at domestic may be far lower than this price. Therefore, on the basis of attentively creating the quality of products, the domestic enterprises should pay more attention on the brand and the carrying of brand value.

At last, what is more important, if enterprises truly achieve a global brand, the enterprises' culture and enterprises' entire organization and structure must be international, it needs to professionally create the structure according with the current international mainstream business culture. The enterprise culture includes the organization structure all over the world, including the composition of the staff, etc. In the management system of the entire firm, the top management committee has nearly half of Lenovo, nearly 12 persons from different countries; the top global 100 executives are also from 28 countries; Lenovo is the first one who sets up the position of "Chief Multicultural Officer" among Chinese enterprises, it is a company responsible for the construction of multi culture of Lenovo in the world.

"Many enterprises believe that dissemination is the most important wok of brand construction, but the real brand construction is from the internal to the external, its core essence is the entire external improvement brought by the adjustment of enterprise culture and organization structure." Yao Chenggang believes that Chinese brands should also think about what on earth they should reserve for the future, whether they have the clarity of creating long-term development of brands or not, whether they have the market reaction ability to create long-term development of brands or not. It is harder to go steady than to go fast in future world, so in the future, the brands relies on current technological reserve and energy reserve for the users' understanding, as well as those abilities able to convert these to the actual value, which are some key points winning in the future for real meaning.

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