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Can Chinese Brands Make It Abroad?
China dominates global manufacturing because its labor is cheap. For the moment, most Chinese companies are content being original-equipment manufacturers that build products for Western brands. But some are feeling pressure from the government and competitors to leave behind the anonymous OEM role and become branded players in developed markets.
The take-away: While many Chinese manufacturers deliver quality that matches that of competitors from other countries, most lack a comparable marketing expertise. For the ambitious companies, we suggest two models that can deliver market entry in ways that keep costs under control and offer controlled opportunities to learn about developed markets.
Articles provided by The McKinsey Quarterly
© 1992-2003 McKinsey & Company, Inc
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