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RemakingMade in China                     August 2012                  Image credit: Jessica Vaughn
WHAT WELL COVERMethodologyRemaking “Made in China”      • IntroductionExternal Roadblocks to Expansion      • “Made in Chi...
METHODOLOGYSONAR™All our trend reports are the result of quantitative, qualitative and desk researchconducted by JWTIntell...
METHODOLOGY              (contd.)INFLUENCERS AND EXPERTSIn addition, we interviewed four relevant experts and influencers.
REMAKINGMADE IN CHINADuring much of the 20th century, China served as a manufacturing center forinternational brands, deve...
REMAKING MADE IN CHINA                           (contd.)INTRODUCTIONIts a tall order, given that Chinese businesses have ...
REMAKING MADE IN CHINA                               (contd.)INTRODUCTION (contd.)China’s brands have seen an “explosion o...
REMAKING MADE IN CHINA                              (contd.)INTRODUCTION (contd.)As China finds its footing as a superpowe...
EXTERNAL ROADBLOCKSTO EXPANSION                      Image credit: Jessica Vaughn
EXTERNAL ROADBLOCKS“MADE IN CHINA” = LOW QUALITYThough China is no longer the top spot for cheap manufacturing—its rising ...
EXTERNAL ROADBLOCKS                       (contd.)“MADE IN CHINA” = LOW QUALITY (contd.)
EXTERNAL ROADBLOCKS                                 (contd.)SAFETY IS A KEY CONCERNWhile perceptions of Chinese-made goods...
EXTERNAL ROADBLOCKS                   (contd.)SAFETY IS A KEY CONCERN (contd.)Around 4 in 10 consumers (and morethan half ...
EXTERNAL ROADBLOCKS                     (contd.)FAKE PRODUCTS FUEL COPYCAT IMAGEDistrust is also driven by news aboutan ab...
EXTERNAL ROADBLOCKS                   (contd.)FAKE PRODUCTS FUEL COPYCAT IMAGE   (contd.)
EXTERNAL ROADBLOCKS                (contd.)SUSTAINABILITY, LABOR ALSO KEY CONCERNS
EXTERNAL ROADBLOCKS                   (contd.)LITTLE DIFFERENTIATION BETWEEN POORLY MANUFACTUREDIN CHINA AND BRANDED IN CH...
EXTERNAL ROADBLOCKS                    (contd.)LITTLE DIFFERENTIATION BETWEEN POORLY MANUFACTUREDIN CHINA AND BRANDED IN C...
EXTERNAL ROADBLOCKS                         (contd.)LOW AWARENESS OF CHINESE BRANDSOur research found relatively low aware...
EXTERNAL ROADBLOCKS                  (contd.)ADVERSARIAL POLITICAL AND ECONOMIC RELATIONSHIP                              ...
INTERNAL ROADBLOCKSTO EXPANSION                      Image credit: Jessica Vaughn
INTERNAL ROADBLOCKS                            (contd.)CORPORATE STRUCTURE AND MANAGEMENT STYLEChief among the internal ro...
INTERNAL ROADBLOCKS                            (contd.)CORPORATE STRUCTURE AND MANAGEMENT STYLE (contd.)This leads to a st...
INTERNAL ROADBLOCKS                    (contd.)CORPORATE STRUCTURE AND MANAGEMENT STYLE (contd.)A rigid corporate structur...
INTERNAL ROADBLOCKS                         (contd.)LACK OF BRAND-BUILDING INNOVATIONThough China has seen a sharp increas...
INTERNAL ROADBLOCKS                      (contd.)LACK OF BRAND-BUILDING INNOVATION       (contd.)Marketers put their innov...
INTERNAL ROADBLOCKS                         (contd.)LACK OF BRAND-BUILDING INNOVATION          (contd.)As with big firms, ...
INTERNAL ROADBLOCKS                             (contd.)LACK OF BRAND-BUILDING INNOVATION              (contd.)Privately f...
INTERNAL ROADBLOCKS                                 (contd.)LACK OF INTERNATIONAL EXPERIENCEAs with most novices, another ...
INTERNAL ROADBLOCKS                          (contd.)FAILURE TO CONQUER HOME TURFMiddle-class Chinese consumers distrust m...
INTERNAL ROADBLOCKS                                        (contd.) FAILURE TO CONQUER HOME TURF                   (contd....
INTERNAL ROADBLOCKS                        (contd.)FAILURE TO CONQUER HOME TURF   (contd.)                                ...
OVERCOMINGTHE ROADBLOCKS                 Image credit: Jessica Vaughn
OVERCOMING THE ROADBLOCKS                                 (contd.)TAKE BACK “MADE IN CHINA”Rather than be constrained by “...
OVERCOMING THE ROADBLOCKS             (contd.)TAKE BACK “MADE IN CHINA” (contd.)                                          ...
OVERCOMING THE ROADBLOCKS                                          (contd.)TAKE BACK “MADE IN CHINA” (contd.)             ...
OVERCOMING THE ROADBLOCKS                                                          (contd.)TAKE BACK “MADE IN CHINA” (cont...
OVERCOMING THE ROADBLOCKS                                      (contd.)TAKE BACK “MADE IN CHINA” (contd.)                I...
OVERCOMING THE ROADBLOCKS                                 (contd.)COMPETE AT A WORLD-CLASS LEVELUntil the “Made in China” ...
OVERCOMING THE ROADBLOCKS                                           (contd.)   COMPETE AT A WORLD-CLASS LEVEL (contd.)    ...
OVERCOMING THE ROADBLOCKS                                                         (contd.) COMPETE AT A WORLD CLASS LEVEL ...
OVERCOMING THE ROADBLOCKS                                  (contd.)LEAN INTO NATIONAL IDENTITYWhile “Made in China” is a n...
OVERCOMING THE ROADBLOCKS               (contd.)LEAN INTO NATIONAL IDENTITY (contd.)
OVERCOMING THE ROADBLOCKS               (contd.)LEAN INTO NATIONAL IDENTITY (contd.)When asked about Chinese historyand he...
OVERCOMING THE ROADBLOCKS                                 (contd.)LEAN INTO NATIONAL IDENTITY (contd.)These spheres of pos...
OVERCOMING THE ROADBLOCKS                                   (contd.)LEAN INTO NATIONAL IDENTITY (contd.)At the same time, ...
OVERCOMING THE ROADBLOCKS                                      (contd.)LEAN INTO NATIONAL IDENTITY (contd.)The mission of ...
OVERCOMING THE ROADBLOCKS                                                            (contd.) LEAN INTO NATIONAL IDENTITY ...
OVERCOMING THE ROADBLOCKS                                                 (contd.)LEAN INTO NATIONAL IDENTITY (contd.)Blen...
OVERCOMING THE ROADBLOCKS                                (contd.)LEAN INTO NATIONAL IDENTITY (contd.)Just as nations such ...
OVERCOMING THE ROADBLOCKS           (contd.)TAP INTO THE MILLENNIAL WORLDVIEWChinese brands will likely findMillennials to...
OVERCOMING THE ROADBLOCKS                          (contd.)TAP INTO THE MILLENNIAL WORLDVIEW      (contd.)Millennials are ...
OVERCOMING THE ROADBLOCKS                       (contd.)TAP INTO THE MILLENNIAL WORLDVIEW   (contd.)
OVERCOMING THE ROADBLOCKS                                                                  (contd.)TAP INTO THE MILLENNIAL...
OVERCOMING THE ROADBLOCKS                                                         (contd.)TAP INTO THE MILLENNIAL WORLDVIE...
OVERCOMING THE ROADBLOCKS                                (contd.)DRIVE INNOVATION AND LEAD CATEGORIESDeveloping a culture ...
OVERCOMING THE ROADBLOCKS                               (contd.)DRIVE INNOVATION AND LEAD CATEGORIES (contd.) DRIVE INNOVA...
OVERCOMING THE ROADBLOCKS                                                                       (contd.) DRIVE INNOVATION ...
OVERCOMING THE ROADBLOCKS                                                          (contd.)DRIVE INNOVATION AND LEAD CATEG...
OVERCOMING THE ROADBLOCKS                                  (contd.)RIDE ON INTERNATIONAL BRAND COATTAILS9Whether by acquis...
OVERCOMING THE ROADBLOCKS                                                                  (contd.)RIDE ON INTERNATIONAL B...
OVERCOMING THE ROADBLOCKS                                                                      (contd.) RIDE ON INTERNATIO...
OVERCOMING THE ROADBLOCKS                                                         (contd.)RIDE ON INTERNATIONAL BRAND COAT...
OVERCOMING THE ROADBLOCKS                               (contd.)BECOME A LEADER IN CSRWith consumers skeptical about the t...
OVERCOMING THE ROADBLOCKS          (contd.)BECOME A LEADER IN CSR (contd.)Patriarchs by nature, Chinesecompanies will like...
OVERCOMING THE ROADBLOCKS                               (contd.)BECOME A LEADER IN CSR (contd.)Currently the worlds topemi...
OVERCOMING THE ROADBLOCKS              (contd.)BECOME A LEADER IN CSR (contd.)While Western companies havegradually come t...
OVERCOMING THE ROADBLOCKS                                  (contd.)BECOME A LEADER IN CSR (contd.)Due in part to mandates ...
OVERCOMING THE ROADBLOCKS                       (contd.)BECOME A LEADER IN CSR (contd.)Perhaps the next generation of lead...
OVERCOMING THE ROADBLOCKS                    (contd.)BECOME A LEADER IN CSR (contd.)Since a sense of collective responsibi...
OVERCOMING THE ROADBLOCKS                                                         (contd.)BECOME A LEADER IN CSR (contd.) ...
OVERCOMING THE ROADBLOCKS                                                     (contd.)BECOME A LEADER IN CSR (contd.)     ...
CONCLUSIONThe journey to Western shores will undoubtedly be an arduous one for Chinesebrands. Weve seen some notable stumb...
CONCLUSION                (contd.)Weve outlined some key strategies that Chinese brands might use to overcomethe roadblock...
CONCLUSION              (contd.)This list is by no means comprehensive, nor is there a one-size-fits-all equationfor succe...
CONCLUSION              (contd.)If they can pioneer unique nichesfor themselves, Chinesecompanies wont need to gohead-to-h...
CONCLUSION              (contd.)More generally, products will need to compete at or above a world-class level,given that c...
CONCLUSION               (contd.)That will come over time as Chinese companies hone their advertising andmarketing skills—...
CONCLUSION              (contd.)Chinese brands have an opportunity to tell a fresh story about China, emphasizingeverythin...
CONCLUSION              (contd.)The next generation of businessleaders may help acceleratechange in Chinas corporateworld....
CONCLUSION             (contd.)The idea of Chinese brands is new to many consumers, but it wont be for long.From Bosidengs...
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EXTERNAL ROADBLOCKS (contd.)LITTLE DIFFERENTIATION BETWEEN Remaking 'Made in China' (August 2012)

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EXTERNAL ROADBLOCKS (contd.)LITTLE DIFFERENTIATION BETWEEN POORLY MANUFACTUREDIN CHINA AND BRANDED IN CHINA (contd.)When respondents with poorperceptions of Chinese brands wereasked why they had such lowopinions, just over half agreed withthe statement, “I am not impressedwith products that are Made inChina and feel Chinese brandswould be a similar quality.”Only 28% of consumers with lowopinions of Chinese brands hadpersonally had bad experiences witha Chinese label.

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