Breaking Barriers

By+Yu+Nan

The launch of Kenyas first standard gauge railway （SGR）， linking the port of Mombasa to the countrys capital Nairobi， in June marked a jump forward for the countrys transportation network， according to observers. Passengers travel time along the 480-km railway was cut by more than half， a direct result of the use of latest Chinese technology.

As Kenyas biggest infrastructure project since independence in 1963， the SGR， built by China Road and Bridge Corp.， is expected to speed up the East African countrys industrialization.

The project is a major breakthrough for Chinese companies， Chinese standards and Chinese operation and management personnel overseas， according to Chinese Vice Foreign Minister Zhang Ming， as it demonstrates the quality， speed， solutions and spirit of Chinese companies.

Breaking new ground

As they improve quality and develop innovational technology， a growing number of Chinese companies like China Road and Bridge Corp. are shrugging off stereotypes and gaining global prominence.

Transsion is a Shenzhen-based phone maker almost unheard of in China， but its cellphones have millions of users in Africa. In 2016， Transsion took up about 40 percent of Africas phone market share， way ahead of bigger competitors such as Samsung， according to Counterpoint Technology Market Research， a global industry analysis firm.

“We are dedicated to finding out what exactly local people like，” said Arif Chowdhury， Vice President of Transsion Holdings. “We improved camera function and calibrated the exposure to suit darker skin tones and make it a better fit for African users.”

Transsion designed phones with multiple phone card slots， enabled local languages， and improved music function and battery life to better answer the needs of locals.

Transsions strong market position is the result of its branding localization efforts， said Wang Yanhui， Secretary General of Mobile China Alliance.

With the aim of becoming an innovation powerhouse by 2020， China made innovation the countrys top strategic priorities in its Five-Year Plan for Scientific and Technological Progress （2016-20） issued by the State Council last August.

Besides， Chinas surging outbound direct investment and new cooperation framework of the Belt and Road Initiative create a favorable international economic environ- ment for Chinese brands to speed up their internationalization， according to experts.

“Chinese companies are racing to take full advantage of favorable policies and initiatives in their innovation drive， and some are expanding in the international market，”said Gu Jianguo， Executive Vice President of China Jianyin Investment Ltd.

Chinese auto manufacturers， such as Brilliance Auto Group and Chery Automobile Co. Ltd.， are also part of the internationalization trend.

Brilliance Auto exports its products to more than 68 countries and regions through an extensive network of over 400 overseas sales centers in Africa， Middle East， Central and South Americas and Europe. Chery has grown a sales and service network covering 46 countries involved in the Belt and Road Initiative. In 2016， these countries accounted for 85 percent of the automakers total exports.

Chinese auto companies now make happy customers across the continent. Behind the wheel of his Dongfeng truck， Zambian truck driver Samson Namuba， going from Lusaka to Mongu， described the road feel of his truck as “awesome.”

“The distance between the two cities is over 600 km and road conditions are poor. A big part of the road is gravel that can quite easily damage vehicles. But my Dongfeng truck， with its powerful engine and tough chassis， can adapt to various bad road conditions，” he said.

John Richard， CEO in charge of market development in Southern Africa at Dongfeng Commercial Vehicle Co. Ltd.， said their trucks have been welcomed in countries like Zambia and Namibia， which represent an enormous market for Chinese auto brands on the continent.

It is expected that in the next five to 10 years， a cluster of growing Chinese global brands will gain an enviable reputation. “Made in China” will become an accepted and positive factor， according to Liang Xin， Secretary of the Board at Eternal Asia Supply Chain Management Ltd.， a supply chain service provider in China.

Shrugging off stereotypes

Chinese brands have long suffered from negative brand perceptions in the international market that link them to low-cost and low-quality goods.

Things are getting better now as both established and emerging global brands are striving to shed this reputation.

A report released by London-based WPP， a public relations agency， early this year showed that Chinas brand image is shifting. It predicts that as more Chinese brands go global， consumers will become more receptive toward them， which in turn will facilitate their growth.

Chinas leading global information and communications technology solutions provider Huawei is quoted as an example of a company that succeeded in shrugging off negative stereotypes. Huawei has proven it can compete with even its fiercest rivals in global markets， such as Apple and Samsung， thanks to its strong brand image and good research and development capabilities.

The reports findings are very encouraging for Chinese brands hoping to continue their expansion internationally. It concludes that the circumstances are now favorable for Chinese companies to establish brands based on their high quality and emotional connections with overseas consumers.

Symphorien Ntibagirirwa， Director of Institute of Development and Economic Ethics in Burundi， notes that African customers pursue value and quality rather than low prices when purchasing foreign products.

“They are more familiar with Chinese home appliance brand Haier， for example， thanks to its valid global branding strategy and competitive advantages in technology， design and services. It changed the way African customers perceive Chinese products.”

In need of recognition

Despite the rapid growth of major Chinese companies on the international stage， it will take time for the perception of Chinese brands as high quality to be recognized， according to insiders.

Chinese companies should further invest in their brands by enhancing societal benefits to boost acceptance and reputation of Chinese brands overseas， said Doreen Wang， Global Head of BrandZ， Kantar Millward Brown， a global market research firm.

“In order for a brand to be globally recognized， it is not enough to make efforts in advertising， sponsorships， international package design， and English websites. It is more about making the brand meaningful to its users， spiritually and mentally， so that consumers are willing to buy，” she said.

Marketing and branding efforts will pay off only through real and sustained improvement in product quality， noted Zhang Yusheng， former General Manager of FAW Vehicle Manufacturers SA （Pty） Ltd.， who has witnessed Chinese automakers growth in the African market for more than 20 years.

“When going global， Chinese brands should adjust their business strategies to adapt to and grow in the changing market environment in order to complete their transformation from local to global brands，” he said.