On January 30, 2009, Columbia Business School hosted a conference exploring branding in China and India. With a population of 1.3 billion, China presents an attractive market opportunity for many multinational companies, as well as some unique challenges in building and expanding a brand. The first panel discussion focused on branding trends in China and was moderated by Mauro Guillen, the Dr. Felix Zandman Professor in International Management and director of the Joseph H. Lauder Institute for Management & International Studies at the Wharton School of the University of Pennsylvania. Mark Aoki-Fordham, director and corporate counsel for Starbucks Coffee Company, spoke about the challenges of selling coffee in a tea-drinking nation and protecting the valuable company trademark in Chinese courts. Roger McDonald, outgoing executive director for global accounts for Xerox Corporation, explained Chinese attitudes toward brands in light of the country's historical experience and modernization. Jessica Zoob, senior vice president of global strategy and business development for American Express Company, outlined how partnerships in China can be effective and addressed the issue of Chinese consumer brand loyalty.
A common theme from the panelists was that Chinese consumers have little brand loyalty and are "fickle." According to a study by McKinsey & Company, 65 percent of surveyed Chinese consumers said they often leave a store with a different brand than the one they intended to purchase.
April 15, 2009
Branding in China: The Challenge of Selling Starbucks Coffee in a Tea-Drinking Nation and Other Lessons
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