The Ogilvy & Mather report was based on interviews with senior executives from 50 top companies in China. Respondents were responsible for corporate strategy or corporate marketing.
The survey found that more than 60 per cent of companies were seeking out foreign markets to establish their own brand presence, with 67 per cent already having a strategy in place to do so.
According to John Shaw, regional planning director for Ogilvy, the key motivation for building a global brand was to enhance the company's international reputation. "This suggests that Chinese companies are in it for the long haul and are approaching their brand development strategically -- building reputation then revenue."
Interestingly, more than half of executives polled said they would establish own brands in foreign markets, with only a few choosing global expansion through foreign brand acquisition or partnering with a foreign brand.
However, Shaw added that when it came to tackling global markets, there was little agreement about the biggest challenges in pursuing this strategy. "Thirty-nine per cent said they were most concerned about competition in overseas markets and, perhaps surprisingly, only 20 per cent saw understanding the foreign consumer as a challenge," he said. Companies also felt China's reputation was critical to their success. Shaw added that Chinese products were associated with low-cost and value for money in markets such as the US and the UK, with consumer willingness to consider Chinese bands varying considerably by category. "Quality is the biggest issue when it comes to Chinese brands."
Mainland executives also named Haier (40 per cent) as their most admired brand, ahead of Coca-Cola (33 per cent) and other global names, such as GE (23 per cent), Samsung and Microsoft (12 per cent each).