Reference News Network, June 30 report: The UK's The Economist website published an article titled "Chinese Brands Are Sweeping the Globe, and It's a Good Thing" on June 26. The article said that if Westerners were asked to list successful Chinese consumer brands, most people would have found it difficult to answer until recently. Although China is the world's top manufacturing power, for a long time, China has been lagging in creative local retail brands and products - even though its factories produced a large number of such goods for foreign companies. However, this situation is changing. Innovative Chinese brands are emerging all over the world. Global consumers and investors will benefit from this.
From Stockholm to Sydney, electric vehicles that quietly pass by you are increasingly likely to be Chinese brands. According to the number of stores, ice cream and beverage supplier Midea Ice City has replaced McDonald's as the largest fast food chain brand in the world. It is expanding in South America. Meituan, a delivery application platform based in Beijing, is also doing so. Bawang Cha Ji is a tea drink chain brand. It is reported that it is expected to open at least 1,300 stores overseas by the end of 2027, mainly in Southeast Asia. A few years ago, it had hardly any stores abroad. Chinese toy manufacturer Pop Mart created a sensation comparable to Disney with a grinning nine-toothed doll named "Lubu", and fans include pop star Rihanna and retired football star Beckham.
The article mentioned that for decades, Western consumers have been buying products made in China. But these products were mostly manufactured and designed by foreign companies. Recently, Internet retailers such as Shein and Temu (Pinduoduo cross-border platform) have won consumer favor with low-priced, stylish clothing and consumer goods. For a long time, it was believed that Chinese brands were of poor quality and lacked creativity.
Today, new companies are challenging these old perceptions. Many companies are willing to publicize their origins: the logo of Bawang Cha Ji is a Peking Opera actor wearing a headpiece (the brand name comes from the traditional Chinese Peking Opera "Bawang Bieji"). One of the most successful video games of all time, "Black Myth: Wu Kong," features the Monkey King from the 16th-century Chinese novel "Journey to the West." Now, many brands not only compete on price but also on quality. The drinks of Bawang Cha Ji may cost as much as Starbucks. Chinese electric vehicles are not only cheap but also equipped with amazing entertainment systems. The toys of Pop Mart can cost up to $835.
In the past, Chinese companies often succeeded by copying Western products at a low cost. Now, they are accumulating their own valuable intellectual property. Although the official media have praised "Lubu," the government has provided almost no subsidies to these emerging consumer goods enterprises.
The article believes that the rise of Chinese consumer brands is good for consumers around the world. They now have more innovative products to choose from. Investors should also welcome these peculiar and fascinating dolls and the taste of red bean ice cream. Handbags and hot drinks are harmless. Even during the trade war that broke out in April this year, Bawang Cha Ji still listed in New York, raising over $400 million in funds to promote its global expansion. More brands have listed in Hong Kong or plan to list.
The report said that Chinese brands entering the global market is still in its early stages. However, Chinese automobile manufacturers are already forcing Western competitors to reconsider their strategies. Competition from China may ultimately push Western big brands like Disney and Mattel to new creative heights. The "westward journey" of Chinese brands, like the pilgrimage of the Monkey King, may bring substantial returns. (Translated by Zhu Jie)
Original: https://www.toutiao.com/article/7521633814373777920/
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