Many upcoming global brands in China still suffer from their ‘made in China’ stigma, Shaun Rein tells CNBC.
“The ‘Made in China’ stigma is serious,” flagged Shaun Rein, managing director of Shanghai-based China Market Research Group, adding that Chinese brands need to establish an element of trust with consumers, which will require higher quality control and more attention to the packaging of products.
“One bad case of poor quality products like a TV blowing up or a wall being found to have carcinogens will destroy these brands forever.” China has faced a series of scandals at home and abroad including lead-containing toys, tainted medicines as well as contaminated milk.
But that might change, Rein adds:
“Within a decade, Americans need to be prepared to see Chinese brands and not just the ‘Made in China’ label on store shelves.”
However, for the majority of mainland brands, Rein believes it will be a lengthy and difficult process before they are “accepted by Western consumers,” citing Japan’s Sony and Korea’s Samsung as examples of companies that struggled to attain their status as the world’s leading electronics makers.
Chinese companies, for the most part, are just learning how to brand in their home market, he said.
Shaun Rein is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference, do get in touch.