Sunday, October 13, 2019

When America is Not "Cool" Anymore

For a long time, American companies have viewed China's market as an integral place to build a presence in to become a globally recognized brand. However, it is also acknowledged that China's market is one of the hardest to conquer because of the power of the government, which has led some companies including Uber and Amazon to abandon building a presence in China. It used to be that American and other Western brands were seen as cool in China, but that is rapidly changing. According to a survey in 1998, very few respondents said they thought Chinese brands were cool. However, due to nationalistic sentiment and increased quality in Chinese products, Chinese have begun to abandon Western products in favor of domestically created ones.

This aligns with what we learned about the essence of marketing from the "Marketing" documentary. People view products as more than just what they are meant to do, but as a part of their personal identity. Chinese people used to buy American brands such as Starbucks and Nike to flaunt their wealth and class. Now, due to an increase in nationalism, Chinese people are turning away from Western brands in favor of Chinese ones. “I think it shows my patriotism,” said Xiong Junming, who now buys shoes from Li-Ning, a Chinese shoe store, rather than from Nike. “Now the quality is similar, so why not buy China?” said another man who switched from Nike to Li-Ning. This change in consumer preference has forced Western brands to become more Chinese in how they present their products. For example, Starbucks recently opened a store in Tianjin built in the style of traditional architecture, with a greater selection of teas. 

As Chinese people see their fellow citizens shift to Chinese brands, they are inspired to do the same. For example, after seeing Chinese president Xi Jinping's wife wear clothes from a Chinese brand in 2013, sentiment about Chinese brands began to improve. Seeing people in power wear Chinese brands has inspired Chinese citizens to do the same such that the rush to abandon Western brands is faster than ever. To compete in the competitive market of China, Western brands will have to do more to appeal to Chinese nationalist sentiment.  

4 comments:

  1. This was a pretty interesting read for me; I never knew that the Chinese are experiencing this shift. Would the recent protests in China affect people's nationalism and the demand for Chinese products as a result?

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  2. I agree this is very interesting. I have also noticed that more international companies are becoming more popular. I think that countries around the world are figuring out how to replicate our economy. Also, I noticed that other countries around the world are becoming more competitive with American companies. For example: Apple used to be the main producer of smartphones.
    Now there are many other companies like Samsung and Huwaei who are taking some of Apple's customers. I used to have an Iphone and now I have a Samsung. The United States´ economy can be replicated.

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  3. I wonder if this was a well thought out plan to shift consumers towards the domestic market. I wonder also if the population could be shifted again to a foreign market if famous individuals wore foreign goods.

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  4. Your blog post on this topic makes me think how it will affect the American culture. If the United States relies so heavily on the Chinese consumer that they're willing to alter their marketing model, that gives control to the Chinese people over an American company. It makes me question if consumers realize the amount of power they have over companies they purchase from everyday.

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