Chinese sports apparel brands to become more prominent
13/09/2007
A Washington DC-based think tank, Social Technologies, has predicted that mergers and acquisitions with and of overseas firms will become a common tactic for Chinese companies as they seek to become global players.
The organisation says that China’s central government will encourage and steer companies through this process in an attempt to turn Chinese company names into genuine global brands.
Another tactic they will employ will be to test the water in developing economies before making a play for a share of more developed markets. One of the examples it gives is sports apparel brand Li Ning, which recently opened sporting goods stores in Bulgaria and Russia.
A Shanghai-based expert on the future of market, John Cashman, has reported for Social Technologies that, while Chinese brands will not “overwhelm the global market” in the next five years, a few will successfully shed their low-value reputation and become more closely associated with quality, distinctive design, and “emotional meaning”.
Mr Cashman believes the 2008 Summer Olympics in Beijing will be a turning point for Chinese brands. “The event will propel some of China’s most aggressive brands to the global stage through partnerships and sponsorships,” he says. “Watch for future leaders and competitors.”
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