• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • SCB YouTube
  • Login
  • Subscribe
  • Logout
  • My Profile
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
    • Webinar Library
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » Blogs » Think Tank » Coming Soon to America: Chinese-Branded Merchandise

Think Tank
Think Tank RSS FeedRSS

Coming Soon to America: Chinese-Branded Merchandise

September 9, 2013
Robert J. Bowman Supply Chain Brain

That, at least, is the view of Nicholas Wells. He's an attorney and owner of the Wells IP Law firm, which specializes in trademark, licensing and intellectual property matters. Wells believes Chinese-branded goods will follow the pattern of those from Japan, Taiwan and South Korea. Only the transition from low price to high quality - and from small sales to large - will be much faster than before.

The reason? Markets today are more dynamic. And China has access to massive amounts of capital, thanks to the infusion of dollars by U.S. companies over the past 20 years. "We paid them to do our manufacturing," says Wells. "Then they turn around and sell to us."

China has yet to make much of a splash in U.S. markets. Some of its highest-profile brands were crafted from acquisitions - Lenovo's purchase of IBM's P.C. division, and Zhejiang Geely Holding Group taking over Volvo from Ford Motor Co., to name just two major deals. (In the case of the latter, the Volvo name was retained.)

Globally, the most valuable Chinese brands today aren't in the consumer-products sector. They're focused in areas such as telecommunications, finance and energy. As such, they aren't likely to spill over into U.S. markets, says Wells.

The real incursion of Chinese-made products will begin in technology and industrial goods, such as heavy machinery. Then it will broaden to include home appliances and automobiles. Expect to see Chinese cars going head to head with established Asian automakers such as Kia, Hyundai and even some Japanese models. Wells says they'll gain a foothold through low prices, but rapidly evolve to an emphasis on quality.

Chinese-branded appliances and computers "are going to be huge," he says. "They will be able to compete with the best in the world on quality eventually." Think of the path forged by successful manufacturers such as Korea's LG Corp. and Samsung Electronics.

What has stopped Chinese brands from making their mark in the U.S. so far? For years, China focused on providing cheap production to western sellers of consumer goods. More recently, with the steady rise of Chinese factory wages, manufacturers have begun shifting production to other parts of Asia, Mexico and even the U.S.

The trend leaves China with a huge, under-utilized manufacturing infrastructure that can be partially repurposed in two ways: to serve China's own burgeoning domestic market, and for the production of Chinese brands for sale abroad.

Wells believes China can make the shift quickly. Korea began its economic push as a "devastated third-world country," he says. China is already a global power, with huge manufacturing and financial resources. Advances in communications and transportation will further accelerate the change, in a manner that previous Asian nations didn't experience.

There is the potential stumbling block of political and cultural opposition within the U.S. to a strong Chinese presence in the consumer market. Tensions could rise over such issues as the yawning U.S. trade deficit and China's alleged manipulation of its currency.

"I certainly see potential problems there," agrees Wells. China's efforts could be further stalled by a "buy American" campaign, aided by the new wave of social media. But previous efforts of that kind haven't had much of a long-term impact on the sale of imported goods. "It's the rare incident that crosses over to where people stop eating "˜French' fries)," he says.

Not everyone believes that China's future success in U.S. consumer markets is a given. Analyst Bill Dodson, author of China Fast Forward: The Technologies, Green Industries and Innovations Driving the Mainland's Future, argues that the nation could be hampered by its rigid, top-down style of rule and economic policy-making. Indigenous companies that become too successful face the prospect of being reined in by an overly controlling government. The billions of dollars spent by China each year to prop up its industries could prove more of a hindrance than help to their long-term growth.

To be sure, innovations in products and technology rarely if ever seem to emanate from authoritarian societies. It's hard to imagine a Steve Jobs or Elon Musk thriving in such a hierarchical atmosphere. But if Wells is right, we shouldn't be too quick to count China out as a future force in branded manufactured goods. For all of its internal problems and limitations, the country is determined to flex its muscles in global markets. Western manufacturers can't afford to be complacent.

Next: Can American brands sell in China?

Comment on This Article


Keywords: supply chain, supply chain management, international trade, China economy, supply chain planning

Global Supply Chain Management Apparel Automotive Consumer Packaged Goods High-Tech/Electronics Industrial Manufacturing

RELATED CONTENT

RELATED VIDEOS

Subscribe to our Daily Newsletter!

Timely, incisive articles delivered directly to your inbox.

Popular Stories

  • DOCUMENTS BEARING THE INSIGNIA OF US CUSTOMS AND BORDER PROTECTION LIE ON A TABLE

    New CBP Regs Call for Greater Diligence by Brokers in Reporting Security Breaches

    Freight Forwarding/Customs Brokerage
  • A WORKER IN A WAREHOUSE, SUPERIMPOSED WITH GRAPHICS SHOWING SUPPLY NETWORK

    Enabling Intelligent Visibility With Supply Chain Analytics

    Data Management (Big Data/IoT/Blockchain)
  • GSCMS-Promo.png

    Watch: Introducing the Global Supply Chain Marketing Summit

    Education & Professional Development
  • A HAND TURNS A LARGE, LIGHTED DIAL WITH THE WORD RISK ON IT iStock-NicoElNino-1364371014.jpg

    Measuring KPIs and KRIs for Comprehensive Supplier Performance Management

    Technology
  • DEEPLY CRACKED EARTH UNDER A BLUE CLOUDY SKY

    Why Maritime Supply Chains Must Adapt to Sustainability Regulations

    Ocean Transportation

Digital Edition

Scb nov 2022 sm

2022 Supply Chain Innovator of the Year

VIEW THE LATEST ISSUE

Case Studies

  • New Revenue for Cloud-Based TMS that Embeds Orderful’s Modern EDI Platform

  • Convenience Store Client Maximizes Profit and Improves Customer Service

  • A Digitally Native Footwear Brand Finds Rapid Fulfillment

  • Expanding Apparel Brand Scales Seamlessly with E-Commerce Technology

  • How a Global LSP Scaled its Security Program and Won More Business

Visit Our Sponsors

Orderful Yang Ming Alithya
Barcoding Blue Yonder BNSF Logistics
CoEnterprise Data Capture Deposco
E2open GAINSystems Generix
Geodis GEP GreyOrange
Here Honeywell Intelligrated IFM
Infor Inmar Keelvar
Kinaxis Korber Lean Solutions Group 2H
Liberty SBF Locus Robotics Logility
LogistiVIEW Lucas Systems MCA Connect
MPO Nvidia Old Dominion
OpenText ORTEC Overhaul
Parsyl PMMI QIMA
Redwood Logistics Ryder E-commerce by Whiplash Saddle Creek Logistics
Schneider Dedicated Setlog Holding AG Ship4WD
Shipwell Tecsys TGW Systems
Thomson Reuters Tive Trailer Bridge
Vecna Robotics Verity
Verusen
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • On-Demand Webinars
    • Upcoming Webinars
  • Digital Offerings
    • Digital Issue
    • Subscribe
    • Manage Your Subscription
    • Newsletters
  • Resources
    • Events Calendar
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
    • 100 Great Partners Form
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us
    • Data Sharing Opt-Out

All content copyright ©2023 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing