Various foreign brands have made an appearance in the country for the past decade. Brands from different countries like USA, Korea, Japan, China, Thailand and many others have been emerging in the local market trying to take over various industries such as electronics, services, consumer goods etc. but amongst these countries, one country stands out, and that is China. But has the Chinese brands exhausted their market? Has the Filipino market grown tired of these brands? How do these companies manage to attain dominance over the local market? These essay aims to address China in the context of the global and Philippine market, their strategies, their capabilities and if they are going to last in the global market.
Ever since the colonial period where the country was taken over by various colonist, most countries, like China, has left a lasting impression on the country when it comes to culture, beliefs and maybe even in tastes which might explain the ever growing popularity of Chinese brands or Chinese-made brands in the country. But a new era is fast approaching and if China I not able to cope with it it might struggle in maintaining its competitive edge against other foreign global corporations.
“China faces new challenges as economics growth slows, wages and other factor cost rise, value chains become more complex and consumers grow more sophisticated and demanding” according to an article written by Eloot, Huang and Lehnich. In this fast paced world that we now live in, customers these days demand goods that are innovative which requires engineering and manufacturing capabilities which many companies currently do not possess. Companies are now trying to compete head on with it comes to their R&D technology and their ability to satisfy the ever growing expectations of the market.
Rising value-chain complexity and a highly unpredictable economic environment is also another challenge which companies, not only China, has to face in order to remain competitive in the global market. Urbanization has greatly contributed to these challenges. With the rapid urbanization and greater affluence, “Product makers are required to manage, make and deliver an array of increasingly diverse products to increasingly remote locations” according to Eloot, Huang and Lehnich. This implies that the market is getting bigger and this entails that companies satisfy their needs and has to reach out in order to do so even If it means trying to reach out in the farthest places of the world. In addition, the heightened volatility of the market due to the uncertain global economic environment has greatly posed a challenge to the global market especially China.
These new challenges are what most companies, not only China, have to face in order to survive in the competitive market, not only here in the Philippines, but around the world. China has been the leader for manufacturing in the past decades but these new challenges poses a threat to their existence in the global scene. Addressing these problems and coming up with solutions to adapt or counter it will greatly determine the success or failure in the global market of these brands. Adaptation is the key for these brands in order to survive.
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CJ 