British Brands In China Essay

850 words - 3 pages

1.2 British brands in China
Being one of the most robust emerging markets, China has attracted investments all over the world for decades since the beginning of its open and reform policy (Melewar, T.C., et al., 2004). After China was accepted by WTO (world trade organization) in 2001(Leïla, 2009), more and more foreign brands have been introduced into Chinese market, among which British brands are no exceptions. These brands of different categories are experiencing the fierce competitions in China, some of them are expanding business quite smoothly while many others are struggling grabbing the market share they have achieved, some losers have to quit the game in the end. Here are some typical brands running not bad in China:
Tesco: which entered the Chinese market in 2004 - currently operates 96 supermarkets and 12 express stores across China, with its operations mainly centred in Shanghai. But with the newly opening of a 240,000 square meter logistics centre in the nearby eastern coastal province of Zhejiang, the company hopes to start expanding throughout the country (The Independent. 2011).
Burberry: China is the first market chosen by Burberry to launch the digital retail mode. This luxury fashion house has opened 57 retail stores in Mainland China. The CEO, Angela Ahrendts said that China has now become Burberry's fastest-growing market, and it is poised to become the company's biggest market within the next five years (Laurie Burkitt, 2011).
Costa: Costa is Britain's largest and the world's fifth largest coffee house chain. It revealed its plans to open more than 300 stores in China in 2006. Today the Costa classic icons are ubiquitous in some developed areas of China i.e., Beijing, Shanghai, etc. the brand is still a runner-up after the Starbucks, which has been serving consumers of this booming market since 1999 (Katie Allen, 2006).
Cadbury: In the mid of 1990s Cadbury introduced Toffee into China, the unique taste soon got Chinese people’s preference. The company was sold to Kraft in 2010 and currently the Toffee is the only recognizable product being sold in China as from Cadbury.
British companies are trying exporting their products resenting their services with a genuine British style since the uniqueness right from tradition is a prominent advantage that will not be counterfeited by its competitors including the brands from United States, with whom British are sharing some cultural backgrounds.

1.3 Importance of this study
China has over taken Japan become world’s second largest economy (Jonathan...

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