{"id":31039,"date":"2025-06-17T04:04:28","date_gmt":"2025-06-17T04:04:28","guid":{"rendered":"https:\/\/financialrush.com\/?p=31039"},"modified":"2025-06-17T04:04:28","modified_gmt":"2025-06-17T04:04:28","slug":"chinese-brands-extend-global-reach","status":"publish","type":"post","link":"https:\/\/financialrush.com\/?p=31039","title":{"rendered":"Chinese brands extend global reach"},"content":{"rendered":"

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Chinese brands are reshaping the global marketplace and extending their influence among international consumers \u2014 even as US tariffs cast uncertainty over the year ahead. <\/p>\n

BYD\u2019s electric vehicle sales have overtaken Tesla\u2019s in Europe, and in Brazil seven out of 10 fully electric cars sold are made by BYD. Xiaomi, the world\u2019s third-largest phonemaker, which has put its logo on everything from suitcases to smart washing machines, just added EVs to its list of planned exports. And this year\u2019s must-have handbag accessory, the Labubu doll<\/a>, is a Chinese export by Pop Mart, which generates almost 40 per cent of its sales outside China. <\/p>\n

According to agencies focused on Asia-Pacific brands, the number of Chinese companies pursuing international sales and entering new markets has grown significantly over the past 18 months. \u201cThere\u2019s been a pretty massive acceleration led by companies seeking growth outside of China \u2014 a highly competitive market where growth has slowed,\u201d says Chris Reitermann, chief executive of Ogilvy Asia-Pacific and China president at WPP.<\/p>\n

He adds that the shift towards ecommerce outside China has made it easier for Chinese brands to expand abroad without having to spend large sums on distribution. Equally, Chinese companies tend to be much more digital-focused and quick to incorporate artificial intelligence, which is reflected in their spending on digital marketing. \u201cPlatforms like TikTok and Facebook have been key to Chinese brands expanding abroad,\u201d he adds. <\/p>\n

Ami Qian, chief transformation officer and head of client business at Japanese agency Dentsu, says Chinese companies\u2019 overseas expansion has led to the \u201cChinese way\u201d of digitally focused brand-building becoming more defined.<\/p>\n

Last summer, the Paris Olympics and the Euro 2024 football tournament provided valuable opportunities for Chinese companies to boost their global profile. While Mengniu, the dairy company, and ecommerce group Alibaba have long-term sponsorship deals in place, newer sponsors included smartphone maker Vivo and BYD. <\/p>\n

Smaller brands, such as drinks companies Heytea and Chagee, set up tea rooms to entice Olympic spectators. At Euro 2024, five of the 13 official global sponsors were Chinese: BYD; Ant Group, the parent of Alipay; Vivo; television manufacturer Hisense; and AliExpress, Alibaba\u2019s ecommerce arm, which also appointed former England footballer David Beckham as a brand ambassador for the competition.<\/p>\n

Reitermann, who has worked with Chinese companies for more than 20 years, says brands such as BYD, which are gaining significant global recognition and awareness, are just starting their branding journey. BYD\u2019s marketing is based around \u201ctelling consumers about specific features\u201d of the product rather than building the brand, he says. While the cars are relatively new and \u201csuper competitive\u201d now, when the product is more established and perhaps less competitive, branding will help by having built loyalty among consumers.<\/p>\n

China\u2019s global relations are a factor driving which markets brands are targeting. \u201cThey tend to go where there is less friction, where China has friendly relations,\u201d says Scott Spirit, chief growth officer and executive director at marketing agency S4 Capital.<\/p>\n

That is the reason for the shift to the Middle East, Brazil, Indonesia and south-east Asia \u2014 where a few years ago Germany, the UK and Italy would have been the main focus. \u201cThe market sellers in Yiwu are all learning Arabic and Spanish now,\u201d Spirit adds, referring to the vast wholesale market in China\u2019s Zhejiang province.<\/p>\n

Last year, Alibaba\u2019s fastest-growing division was international ecommerce, which includes platforms such as AliExpress, Lazada (south-east Asia), Daraz (south Asia) and Trendyol (Turkey). This year the group is pivoting towards AI and cloud services, but Alibaba remains the second-highest ranked global Chinese brand, at 29th out of 100 global brands, according to Kantar.<\/p>\n

Tencent holds the highest ranking, at 11th. The tech giant scored a brand win earlier this year when its WeChat platform was removed from the US Trade Representative\u2019s list of counterfeit sellers, which it had been on since 2022. Danny Marti, head of public affairs and global policy at Tencent and intellectual property (IP) tsar under the Obama administration, says the removal recognised WeChat\u2019s progress in IP protection. <\/p>\n