Chinese tech brands and the challenge of earning consumer love

Chinese brands – particularly technology brands – are growing in scale and prominence around the world. From consumer electronics and ecommerce to electric vehicles (EV) and IT systems, their growing impact has been nothing short of impressive. Yet the rise and influence of these firms haven’t always been welcomed.

What are the challenges faced by Chinese technology companies as they expand beyond their domestic shores? Can China’s Silicon Valley connect with global audiences and touch more hearts internationally?

China is coming

It was only a few years ago when China was still labeled as the so-called “copycat” and “factory of the world.” Fast forward to today, however, and look how things have changed.

Huawei, Oppo, and Xiaomi are the second-, fourth-, and fifth-biggest smartphone companies globally, with Samsung and Apple in first and third place. In China, around 80% of handsets are now from homegrown brands. Compare this to only five years ago when Apple and Samsung were overwhelmingly preferred.

The EV market in the country, fueled by Beijing’s Electric Vehicle Subsidy Scheme, also gave rise to players like BYD (the world’s second-largest manufacturer of such vehicles after Tesla) and automaker Nio. Today, China is the world’s largest EV market, buying more than half of the world’s volume of “new energy” cars.

And in ecommerce, it’s not all about Alibaba. British companies Asos and Net-A-Porter compete with SheIn and Zaful – younger Chinese brands with 7.5 million and 4.8 million followers, respectively.

On the other hand, the country’s fintech sector has seen Tencent-backed WeChat grow from a messaging app to encompass many other services – including a digital wallet – demonstrating China’s capacity for innovation.

The tables have turned; Chinese brands are here, and they compete on great design and quality, not just price.

Chinese brands are still new to the world

Brands are much like people: Their customers want to know who they’re getting into a relationship with. But despite the rise of Chinese tech firms, they’re still quite new and unfamiliar to the world. A quick search online for Alibaba, SheIn, or Zaful shows links to “Is it legit” “Is it reliable” and “Is it safe.”

Google autofill entries about Alibaba

This unfamiliarity creates a vacuum that’s waiting to be filled in customers’ minds. Just as people around the world can tell you that Apple “Thinks differently” or that for Intel, what counts is what’s on the “Inside,” customers want to understand their Chinese counterparts. How are they different? What is their vision? And because the country’s firms are still rather mysterious, customers are left to fill in the blanks themselves with their own perceptions around “Brand China.”

As the country adapts to a global environment, its actions are scrutinized more than ever. The US-China trade war and Huawei’s perceived security threats are just some events that have created a sense of suspicion and uncertainty around China.

Defining their vision and purpose isn’t just a great opportunity that local companies miss, but it’s also an important part of owning the understanding and reputation that they actually want.

The struggle for ‘soft power’

Defined as the ability to shape preferences through appeal and attraction, soft power requires a brand to tap into deeper human feelings and cultural truths. While Chinese firms do advertise around the world, their narratives tend to center around specs and practicalities, with stories of how they’re faster, bigger, better, and cheaper.

From company-centric to customer-centric

Going international