P&Waffle | Brand New Asia

Consumer perception of a brand has a strong association with its country of origin. Although you might buy a TV set made in South Korea, most of us would only do so if it were endorsed with a European or Japanese brand logo. Russia is perceived as crap for cars whilst Germany is good, but in reality Russia as a leading technological force capable of launching manned rockets and building space stations.

Chinese companies are not blind to the fact that the West have for many years used them, effectively for cheap labour, so that Western companies can build brands which “justify” massive profit margins. This can’t last forever.

An interim solution is to snap up Western brands, which already have heritage and credibility. Chinese companies were among the frontrunners in purchasing MG Rover. Even though from a UK consumers perspective the Rover brand has damaged credibility, MG was still extremely popular and it still represents a solid platform to work from, especially if they can get the product right.

The long-term solution is for Asian companies to start building brands that, in the ullness of time, will gain credibility, by poaching expertise from the West.

After the Second World War the US acquired German technicians previously

engaged in designing and building “V2” rockets to accelerate its space program. When Neil and Buzz first stepped on the moon it was the embodiment of the American dream but the route to getting there was dependent on a single-minded determination to succeed, irrespective of whether the expertise was home grown or bought in.

I predict Asian companies will take a similar route to obtaining its goals by buying in western knowledge of how to create and build brands. This is bourn out by the amount of work that British designers and brand developers are now securing in this arena.

Branding is not a mystical art it can be learnt or acquired.

Gaining brand credibility and overcoming preconceptions about the nationality of a brand is a challenge but it is by no means impossible. When I was a boy it was a real rarity to see a Japanese car on the road and most car buffs thought them unworthy of serious consideration. But how times change. Toyota now makes 5.5 million vehicles per year.

In 10 years time I believe we will see huge change with much more aggressive and confident brands emerging from Asia because they can buy in and learn what we in the West have: knowledge.

But we can’t have what they have: a massive and cheap human resource.