China
3. Searching for emerging Chinese brands
Without brand power, Chinese companies cannot hope to be competitive at home, and are already at a disadvantage in many consumer segments, with Chinese consumers favouring international products, and their own inferior pricing power and margin structure. They have seen their earnings power transformed as they access a whole new population of consumers. Until Chinese brands emerge, foreign companies will take much of the profit pool available here, regardless of government attempts to intervene, and foreign companies also have little to fear. Companies must identify new computers with powerful brands at an early stage, and understand what makes them a threat, first in China and in due course internationally.
