An introductory note from the author:  Firstly, ladies and gentlemen, it should be made clear that everything in this post is discussed within the scope of the Chinese marketplace, and that the opinions expressed herein are mine personally.

Brand is an interesting thing. Brand is many things, including the personification of a product or service.  Brand is like the name or nickname of a person for the product or service.

Branding gives others something to remember and address this very person by, especially when he has done something great and expect others to be grateful.  Thus the fundamental purpose of brand marketing is to make consumers remember it, consume it, and continue to consume it.  This should be very easy in theory.  Just expend your effort build something really fantastic, and go around shouting “hey guys, please be aware that this piece of work is proudly brought to you by [insert your brand here], and we will do even better in the future!”  But in the China marketplace, things always have some tendency to go wrong, especially in a market where everyone speaks a language very much different from most other languages available.

One such occasion is when one company has too many brands. In a recent market research project for an Allegravita client, I was surprised to learn that most consumers we interacted with did not know that Gatorade is a Pepsi brand. This isn’t necessarily bad, but in China, attaching a small brand to a globally respected name could have even better effect.

Or on other occasions when there are so many brands involved, it’s rather hard to maintain one single brand from the hellish brand warfare.  An example would be the computer industry in China.  In early 1990s, when Great Wall was the dominant PC brand, everyone was referring to computers as “386” and “486” (as in 80X86).  Manufacturers such as Great Wall and Compaq were so easily overshadowed by the processor maker. Things didn’t go better until, according to my observation, the coming of Lenovo (then named Legend: they changed their name years later when sued). Even “Intel” and “Pentium” went lost in the initial communication where the new processor brand was simply called “586” for habit’s sake. The problem was later solved by Intel’s carpet-bombing campaign of “Intel Inside” advertisements. And that’s good.

Things get even more confusing as time goes by and global collaboration becomes commonplace. Still taking our power-eating buddies for example, smart phones are the big thing right now. Currently there are brands for RAM, processors, OS providers, OSes themselves, phone manufacturers, cellular carriers. Putting them together, the a given handset’s brand profile could get really chaotic.

Take Android phones. The OS is called Android, and the maker goes by the name of Google. The ground-breaking phone manufacturer is HTC, and HTC’s phones are sold under a wide range of carrier brands such as T-Mobile (America), TIM (Italy), MTN (South Africa), and HTC itself. Product model names could also vary such as the first generation is called “T-Mobile G1” and “HTC Dream”, the second “T-Mobile MyTouch” and “HTC Magic”, while the latest two generations are simply “HTC Hero” and “HTC Tatoo”.  The chaos redoubles when it officially gets into China under HTC’s sub-brand Dopod. Consumers can now buy a Dopod A6188 (in other sense “HTC Dream”) and Dopod A6288 (in other words “HTC Hero”).  Arguably, the problems are: A) Too many brand names blind people. The brand-blind could be very serious when there are multiple mega-names among them. B) Language barrier. Chinese consumers are not so sensitive to English words or letters.

In many countries this shouldn’t be much of a problem since most people only care about their local version. But this is China, where local release, especially for phones, tends to be an expensive undertaking with newness equating to premium pricing, while consumers simultaneously have wide access to a black market. The brand war turns out to have an interesting effect. Here people always address all phones that works upon Android platform as “Google Phones”, and HTC’s great works are named in an unintended fashion as G1 (HTC Dream), G2 (HTC Magic), G3 (HTC Hero), G4 (HTC Tatoo). With HTC announcing or leaking new plans, I’m already expecting the wide usage of G5, G6, and probably G7. Gadget collectors are talking about the difference between “T-Mobile G1”, “TIM G1”, “MTN G1”, oh, and “HTC G1” only when they don’t know how this particular phone should be categorized. Poor HTC becomes the invisible man, and everyone is feverishly thanking Google for the hardware as well as software. This isn’t so great, by my standard, when HTC is selling phones under its own name and the Dopod alterna-brand.

The point here is, it’s necessary to have a brand identity, but it’s also important to make sure the brand is put into proper usage. You’ve got to pay attention to how people are talking about your stuff. Not only comments, but also how they recognize it. Advertising and other above-the-line marketing is one way to sort that out, however effective management of media exposure and other below-the-line techniques are of high importance. A failure media management program could result in something like this:

iPhone. This is the name that completely changed the smartphone business. Even before it’s much belated release in China, there were already around one million smuggled units running on the GSM networks of various carriers here. For traditional lack of creativity and marketing-oriented thinking, both China Mobile and China Unicom now are busy developing their home-grown (although technically on Android) smart phone OSes called “OPhone” and “UPhone” respectively in order to catch up with the trend begun by Apple. Intended unimaginative branding caused a brand avalanche. Since there are “iPhone”, “OPhone” and “UPhone” already, Chinese journalists begin to automatically re-brand every other player in the field on their own accord. In this fashion, Microsoft, who so proudly announced its “Windows Phone” campaign not so long ago, is now called “WPhones”. And Android is now commonly addressed as “GPhone”. Multiple tech portal websites (Chinese) have worked out thrilling big headlines going like “FIVE [X]Phones fight to be king of the hill in China!”

Although every bit true in OPhone’s and UPhone’s cases, this isn’t so good for Microsoft or Google (well, and HTC, Motorola, Sony Ericsson, Samsung, LG, etc passively represented by these two giants) because such unofficial branding renders them instantly, in the minds of millions of consumers as little more than iPhone copycats. You will see this concern stands when you see so frequently Chinese netizens commenting like “to hell with WPhones and GPhones. Our iPhone is the first and best!” A fundamental rule to market competition is, if you want to do better than iPhone, you first declare very clearly “we are definitely not an iPhone, and we don’t want to be”. Things will look much better if vendors are more serious about their media work, and spend 5 more minutes talking to the journalists which can simultaneously influence public opinion and help clarify these muddy waters.

Another solution to achieving brand integrity in China includes defining a real Chinese brand name that makes some vague sense rather than being plain transliteration. Then, and the most important, ensure that brand name is correctly used. Contributing all your good reputation to a partner is bad, but making yourself look like a no-brainer is worse.

So, behold, BlackBerry and Palm. You guys are talking with China Telecom for China entry right the moment. Do not make yourself into “BPhone” (or “BBPhone”) and “PPhone” by doing nothing! This is China, where many things could go wrong at the least unlikely point. Know what you are dealing with. Keep yourself known in a preferable way. And make sure the message is delivered correctly through the whole process.

Article by Allegravita’s Head of Research, Kane Gao