Breaking into international markets with emerging brands

June 18, 2013 - PRLog -- Professors Kumar and Steenkamp highlights in their new book- How emerging market brands will go global – innovative ways for emerging markets to lead change and launch international brands.

Professor of Marketing at London Business School, Nirmalya Kumar, explains: “Many Chinese firms have started the same transformation that Japan and Korea went through. Soon we will be buying Chinese-branded products just as we are buying “Made in China” Western-branded products today.”

Professor Nirmalya states that, “In 1990, emerging markets accounted for 20 per cent of global output. By 2010, the share of emerging markets had doubled to 40 per cent and this number is likely to surpass developed markets by the end of this decade.”

China is leading change and fast becoming “the world’s factory”, as it produces some of the world’s most favoured brand products such as Apple to Disney and has overtaken its neighbour Japan to become the second largest economy, worldwide, behind the United States. China poses to overtake United States before the end of this decade.

However, western, globally established brands are harder for an emerging market like China to follow. Although emerging markets, China, Brazil, India, and Malaysia are key drivers of global trade, their brand names are yet to be imprinted in the minds of many.

Eight routes to leading change and breaking the barrier to international markets are laid out below;

According to the authors of the book ‘How emerging market brands will go global’, “brand breakout”, is achievable. “There is no reason”, says Professor Kumar, “Why Chinese brands cannot have the same impact in the US, as US brands have had in China.” And here are the eight ways they can do it.

1. Moving to higher quality and brand premium (Pearl River Piano).

2. Business to Consumer path: Transferring expertise of B2B into B2C markets (Galanz, Huawei).

3. Following emigrant’s foot path Corona, Mandarin Oriental).

4 Acquisition Channel: acquiring global brands from Western multinationals (Lenovo, Tata Motors).

5. Positive Campaign: improving negative association with country of origin (Chang Beer, Ospop).

6.  Cultural Resources: Focusing on positive cultural myths (Havaianas, Shanghai Tang).

7. Natural Resources Path: Branding commodities in four steps (Natura, Café de Colombia)

8. National Champion Path: Transferring strong support from the state (Emirates Airlines, China Mobile)

According to Professor Kumar, “The book is not about best practice”, he concludes with, “It’s about next practice. Emerging markets have to move forward from simply being the manufacturing capitals of the world. And they might do this quicker than the West may think.”

For information on leading change programme at London Business school, visit http://www.london.edu/programmes/executiveeducation/leadi...