Pain point: Brand and cultural identity
Oct 13, 2024
The "2024-2030 China Insulated Cup Industry Market Panorama Monitoring and Investment Strategy Research Report" released by the Huajing Industry Research Institute shows that the export value of China's insulated cups has shown a steady growth trend in recent years. The export value in 2022 was 27.805 billion yuan, an increase of 4.601 billion yuan year-on-year. This not only reflects the global consumer recognition of China's insulated cups, but also shows the growth space of the insulated cup market. From "Made in China" to "Chinese brand", today's Chinese insulated cups are leading the new trend of China-Chic going to sea with a new look. But on the road to going global, the civilian product manufacturing industry represented by thermos cup enterprises still faces many challenges.
Making a brand abroad is much more difficult than in China because of cultural differences, "Xia Feijian told reporters in an interview." Chinese and foreign consumers have completely different needs and usage scenarios for thermos cups. Differentiated demands and scenarios pose higher design requirements for enterprises. He gave an example that people in Western countries are more willing to use thermos cups for "cooling", and there are also significant differences in cup shape and capacity, which stem from differences in local culture and concepts. Therefore, Chinese enterprises must follow the principle of localization in design and not work in isolation. Only by designing products that appeal to overseas consumers can we enhance the brand's recognition and market share overseas.
In addition to cultural differences, according to the interviewed business leaders, the business environment, legal policies, and even geopolitics encountered during the process of going global are also difficult challenges to overcome. Among them, some countries, especially some European and American countries, have also built trade barriers that are difficult for local Chinese enterprises to overcome in a short period of time. To avoid risks, many companies prioritize choosing Southeast Asia when expanding overseas. On the one hand, the people in this region have a high recognition of Chinese brands; On the other hand, the region has relatively complete industrial and supply chain support.
With the rapid development of the e-commerce industry, the sales channels for products are no longer limited to traditional shopping malls and supermarkets. Overseas online channels such as Amazon have become very smooth. The changes in sales channels have provided a broader sales platform for domestic brands, but also raised higher requirements for Chinese brands to further expand overseas.
When it comes to e-commerce channels, Lv Zhengjian said that in the past, companies needed to establish themselves in overseas markets and dispatch personnel for sales. Now, through online channels, Chinese products can easily reach global consumers, allowing companies to gain a deeper understanding of local consumer needs and putting new pressure on the production efficiency, manufacturing, and research and development systems of Chinese enterprises. But pressure is the driving force, and enterprises will transform and upgrade accordingly, making production lines more flexible and adaptable to meet the needs of small batches, customization, and personalization.
Compared with foreign brands, Chinese brands started relatively late and still have a gap in consumer awareness. Lv Jiechi stated that in the process of going global, the recognition of brand and culture takes time to settle. To this day, many people still have a high level of trust in "foreign brands", even though most of these products are produced domestically. To surpass Western brands in a short period of time, it is difficult to change consumers' inherent perceptions unless there is a significant technological breakthrough and a unique product is created. Currently, Chinese brands still need to deepen their product content while ensuring product quality, gradually accumulating brand awareness and reputation. In fact, regardless of the industry, in order to gain recognition in the international market, it is necessary to patiently cultivate the market, formulate corresponding market strategies, tell one's own brand story well, and gradually enhance brand influence.