How These Chinese Brands Made It Big Internationally

For a consumer, China is the place where most of their everyday products are produced. (Image:  pixabay  /  CC0 1.0)
For a consumer, China is the place where most of their everyday products are produced. (Image: pixabay / CC0 1.0)

For a consumer, China is the place where most of their everyday products are produced. From gadgets to plastic tools, to home electronics and appliances, China makes it all. In the manufacturing industry, Chinese factories are world renowned for the extremely cost effective production of goods for foreign companies.

With such an infrastructure and labor advantage, it’s no surprise that not only Western brands are reaching success through making their products in China, but that many Chinese brands are also amassing foreign success and international revenues.

While there are companies in the country like Xiaomi that became instant overnight successes by making cheaper but almost similar phones like Apple’s iPhone, their progress eventually stops.

Chinese factories are world renowned for the extremely cost effective production of goods for foreign companies. (Image: pixabay / CC0 1.0)

Chinese factories are world renowned for the extremely cost effective production of goods for foreign companies. (Image: pixabay / CC0 1.0)

However, there are other Chinese brands that have cracked the formulae for consistent success in foreign markets with their unique and well-placed strategies and good products that make a difference to those who own them.

Some of those top companies that continue their influence in the international markets are these, and Xiaomi might learn a lot from them.

Lenovo

Lenovo saw much success after its two main international acquisitions, which included taking over IBM’s personal computer business in 2015 and buying Motorola’s handset industry in 2014 from Google. While the company’s smartphone business didn’t soar too high, they are still the world’s largest PC maker with a net worth of $66.7 billion, with 73 percent of this revenue coming in from markets outside China. By their strategy of obtaining other businesses, the brand has managed to keep its success going.

Lenovo saw much success after its two main international acquisitions that included taking over IBM’s personal computer business in 2015 and buying Motorola’s handset industry in 2014 from Google. (Image: pixabay / CC0 1.0)

Lenovo saw much success after its two main international acquisitions, which included taking over IBM’s personal computer business in 2015 and buying Motorola’s handset industry in 2014 from Google. (Image: pixabay / CC0 1.0)

Huawei

With their $62.9 billion revenue, the brand is a household name in Latin America and Europe, thanks to their smartphones, wireless networks, and sponsorship of the Arsenal football club. By expanding their merchandise and services, the company gained a higher branding power and captured a vast market. However, their telecom infrastructure expansion into the U.S. is blocked because of security concerns, although their smartphone sales are permitted and are going strong.

Power China

This company is the state-owned developer of hydropower dams and power plants. They have projects in many countries from Laos to Pakistan, whereas nuclear power and wind energy are also under their portfolio. These services provided by Power China have allowed China’s soft power to seep abroad into many developing countries. The company’s current net worth is $43 billion, with 25 percent of its revenue share from outside the country.

Midea

Being China’s largest manufacturer of household consumer appliances, Midea sells AC’s and refrigerators in Mexico, the U.S., and many other places in the world, and it continues to grow. Its competitor within China is Haier, which is also quite recognized internationally.

'Zeng Zi Butchered a Pig' is a story that describes how Zeng Zi educated his son about honesty by keeping a promise. (Image: pixabay / CC0 1.0)

WH Group is the world’s biggest pork processor, much larger in revenue than U.S. meat packaging giants Dean and Hormel. (Image: pixabay / CC0 1.0)

WH Group

When the state-owned Shuanghui Company bought Smithfield’s Foods in 2013, they also changed their name to WH group, and got registered at the Hong Kong Stock exchange. Today, it’s the world’s biggest pork processor, much larger in revenue than U.S. meat packaging giants Dean and Hormel.

Through their consistent strategic moves, these companies were able to take their reach beyond borders without succumbing to lower quality or copied products.

Written by Henry Kingston.

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