The Hindu : Karnataka / Bangalore News : Inadequate branding blamed for poor response to Chinese products

Online edition of India's National Newspaper
Monday, Nov 27, 2006
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Karnataka

Karnataka - Bangalore

Inadequate branding blamed for poor response to Chinese products

Rasheed Kappan

`India can make up 25 per cent of our overseas sales by 2010'

Perry Hon, Executive Director, TCL Corporation. — Photo: V. Sreenivasa Murthy

BANGALORE: "India can make up 25 per cent of our overseas sales by 2010," this telling remark by Pery Hon, Executive Director of TCL Corporation, reflected the leading Chinese television-maker's appetite for a market characterised by a hungry, increasingly rich middle class. By implication, Mr. Hon's statements echoed the general Chinese sentiment that it could flex its manufacturing muscle to make a mark here. The only block was inadequate "brand building."

TCL had big plans for India, and that included a research and development centre here. "Bangalore is a nice place for such a centre. This city could be considered, since Huawei Technologies has set up its R&D centre here," Mr. Hon told The Hindu.

He was part of a 100-member delegation visiting India as part of the India China Friendship Year.

Also on the TCL agenda for India were two independent factories.

"India is a big market, important for our overseas initiatives. Having established branches all over India, we are now looking for a good sales network," explained the company official.

Incidentally, TCL led the worldwide TV market by the sheer size of the volumes. The company was into manufacture of home appliances such as washing machines and microwave ovens, with R&D centres in the United States and Singapore.

Yet, besides TCL and Huawei, the average Indian had heard little about big Chinese brands.

"The ordinary Indian always thinks `made in China' products as cheap and of low quality," admitted Mr. Hon. But he hastened to add that Chinese products were not bad. "We have almost the same quality as the Korean products. The problem is branding."

Popularising the brands was not easy. "We need time to warm up. Let more people know about our products," said Mr. Hon.

That, he had figured, would be easier asthe Indian market was similar as China's. "India is a developing country, with many having low incomes. We are familiar with that kind of market. Our sales people can go anywhere, unlike the Koreans and Japanese," he said.

Mr. Hon believed if the U.S. and European markets got good quality Chinese products, the Indian market deserved the same. But he wanted Chinese brands to be "encouraged" here. "We can offer more jobs, better sales service, do our R&D here, and even customise our products for the local people. China is a free market country now," he said.

For him, the mutual visits of the Indian and Chinese delegations to the two countries were an exercise that had potential to boost business.

"Indians don't know China enough. We should offer more opportunities for the two to communicate," his was a plea for an enduring partnership, one that went beyond the India China Friendship Year.

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