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Moving in on mass premium
HOME > PAST ISSUE > PERSPECTIVE [Premium content]July 2006
After a number of high-profile slip-ups, foreign multinationals are homing in on a Chinese market that can deliver both high margins and large sales volumes
Despite coverage regarding the rise of Chinese brands, few are actively preferred to Western ones. Brand equity - the difference between a mouse and Mickey Mouse - is easily measured. The strength of a trademark is tantamount to the premium it charges relative to competitors and, to date, no Chinese brand is more expensive than its foreign counterparts. American and European logos, from Adidas to iPod, are still not only more trusted but also "cooler" than their mainland brethren.
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