A
rose by any other name smells just as sweet. The same cannot be said of a
manufactured product, however. To the discerning consumer, a washing
machine, a telephone or a bottle of wine of a brand other than those
considered synonymous with quality simply cannot be trusted.
In the days when the mainland was still under a planned economy, quality
was a mere afterthought for many state-owned enterprises whose primary
concern was to meet production targets. Consumers had no choice but to
accept their sloppy goods because they were virtual monopolies that did not
need to worry about bankruptcy. Which was why the small range of foreign
products available at the Friendship Stores - open only to senior cadres -
were so sought after. And when these products were allowed to be sold on the
mass market, they quickly outshone locally produced competitors.
Attitudes have been changing among local producers in recent years,
however. They have had to, as the economy has been thrown open to the
outside world, with more and more foreign products flooding in due to World
Trade Organisation membership.
The central government has been leading from the front in this endeavour,
making the development of domestic brands one of the country's top
priorities. For the most part it has not, thankfully, tried to achieve this
by picking winners, but by strengthening the enforcement of intellectual
property laws and encouraging a culture of quality.
Such leadership certainly helps. But an increasing number of domestic
brands are growing in prominence primarily because market forces are pushing
manufacturers to invest in improving the quality of their products and
promoting their own reputations domestically and, increasingly,
internationally.
They have a competitive advantage which should not be underestimated.
With its large pool of cheap labour, China has become the world's largest
export processing centre for consumer products. It is only logical that,
having learned to manufacture to international standards, local companies
are now able to exploit the country's large domestic market of 1.3 billion
people to build up their own brands. This is important to future growth: the
number of internationally renowned brands that a country's enterprises
develop using home-grown technologies is as significant as the volume of its
production capacity - if not more so.
Perhaps the best-known of the Chinese brands is the Qingdao-based Haier
group, whose electrical home appliances have not only become a household
name in China, but are making headway in overseas markets. Yet, there is
still a long way to go. China will need many more Haiers before the 'Made in
China' tag becomes an undisputed mark of quality.