Famous Chinese brands have not yet reached many European or American stores, but that is going to change, writes Shaun Rein in BusinessWeek, although not overnight. He disagrees with the US journalist James Fallows who says that unlike US companies, Chinese firms have been unable to create themselves a global market. Fallows’ argument: China is not yet a leading economic power, unlike what many Americans think.
In several hundred interviews my firm (the China Market Research Group) conducted with senior executives of consumer products companies, just over 50% said they expected to enter the U.S. in five years, but only after first targeting their home market, where retail sales are growing 15% a year, and regions like Africa and the Middle East, where local competition is weak. In the next five years, Americans should be prepared to start seeing Chinese brands on the shelves of Wal-Mart (WMT)and not just the Made in China label.