The BeanCast | The Best Marketing Podcast Anywhere

We strayed into some very interesting territory on this week's episode of The BeanCast Marketing Podcast. While discussing whether Chinese premium brands (like Li Ning, Haier and the already present Lenovo) had a real chance to capture the hearts and dollars of American consumers, Bill Green made an impressive point:

"There are two strong brands that everybody knows from China. And that's Chinese restaurants for Chinese food and Bruce Lee."

Yes, the remark was intentionally inflammatory. But looking past the surface of the comment, the point is well taken. Because as he went on to explain, the best brands enter into the pop culture of a society. They can be worn on T-Shirts with pride or be displayed proudly on a shelf or driven knowing you are displaying a certain status or taste that you want the world to see. Chinese brands, though, are burdened with a cultural identity that many consumers and businesses still find offensive to American sensibilities.

The Japanese Comparison

Again and again, the comparison (or contrast, if you will) to Japan came up in our discussion on the show. Japan was known for cheap quality products for years, much as the Chinese are now burdened by stories of tainted food, lead paint and workers falling mysteriously out of windows. But Japan also had the "advantage," if you will, of an American interest that was vested in their success. We dropped two bombs on them! We invested in their reconstruction. They were and are and continue to be a so-called success story of exporting democracy and capitalism. While none of these facts necessarily negate the chance for Chinese success, they do show that the two situations are not identical and that comparison is unfair. The path to success for each lies along a different road.

Different Roads, Same Goal

And yet the goal for each has to still be the same in the end. Japan, for all its technological know-how, didn't win on the world stage because of it's gadgets or cars alone, but by the strength of the culture that backed it up. Japanese automobile brands are now synonymous with a work ethic and quality that sets them apart from manufacturing operations worldwide. Their TQM (total quality management) is just as much an export as the products they bring out. The gadgets they produce are backed by a worldwide perception that the Japanese people are already living in a technological future. Pictures and news stories give a sense that we are receiving goods from a land of science fiction. And this whole image is reinforced by a pop-culture of movie, books, mangas, animes and music that is streaming out to an eagerly receptive audience. Even if you are directly touched by only one of these areas, all of them are working on your perceptions in some capacity.

The Power of Culture

This is the truth behind the strength of exporting American brands as well. There are intangibles of culture that are invariably underpinning their message and exporting ideals in equal part to product benefits. Pepsi's "generation" approach is as much about seven decades of American music, TV and movies as it is about establishing a product history. Apple is just as much about the California lifestyle of clean lines and relaxed living as it is about better technology. The best brands always do this. They always encapsulate a little bit of the culture they come from and that's what makes them desirable. We feel part of something bigger when we walk into a Target. We feel a little more American when we drive a Chevy.

Finding Your Deeper Message

Which gets me to my point. What are your brands really saying? Look beyond the features and benefits. Look beyond the well-designed ad campaign and carefully crafted headlines and look at the heart. Is it tapped into something culturally bigger? And don't throw the old, "We're a business brand, not a consumer brand." Saying that just shows supreme ignorance for how people buy. Shopping may be a rational act of comparison. Buying is emotional. This is true whether someone is spending $10 or $10,000. And business has it's own pop culture that's as motivating as any top-40 hit.

How is your brand appealing to the emotional side of your customers? Is it tapped into the culture that motivates your target? If not, it may be worth exploring at some depth. Because even if you are the dominant brand in your category, tapping into a cultural significance is the difference between Boeing and Airbus. It defines you at a level beyond avionics and imbues your brand with national pride.

Can China Succeed?

So getting back to where I started, can Chinese brands do all this? Certainly. But I think they also showcase the difficulties inherent in exporting a brand that is associated with cultural negatives. Chinese brands are burdened by cultural perceptions that show them to be a repressive society that squashes dissent and controls the flow of information. These are not insignificant barriers. And until they either export their culture to us or adapt their culture to our way of thinking, they probably won't achieve the level of success that they hope to reach.

In any case, either of the above options are years away from happening. Still, it's my fervent hope that they take the latter approach. ;)

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bg Comment by bg on August 4, 2009 at 1:11pm
The problems with a cultural identity and China has more to do with their government’s control of everything in their society, from political dissension to how many kids you can have. Here, have eight kids and you get a reality show. In China, you get fined.

The Japan model works because they’ve embraced a free market model like our own, without the fear of an uprising from “the people.” A free market will do well when the government supports and facilitates it, not when it’s afraid of it. China’s free-market experiment is only about 40 years old and looks to be growing, but it’s only going to get so far unless the government backs off. And that means in all areas.

Look at Google here and what it’s done for American business, enabling people to find anything they could want to buy. How are you going to do that in China when Google is told what it can and can’t display?

Or a government that shuts blogs down for saying something remotely critical that would go unnoticed in the U.S. now. Like I said, a free-market votes with its wallets. Write a book critical of the government? Go ahead. The only consideration is that it sells because here, controversy and dissent fuel book and movie sales. A controlling government like China hasn’t figured out how to profit off it yet.

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