Chinese brands to focus on domestic market

No one is being spared the pains of a global slowdown, but Chinese companies are trying to use the chance to upgrade while focusing on the domestic market. A roundtable was held in Beijing on Thursday to discuss how best to build stronger brand-names, in time for the next wave of growth.

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Not only are multi-national companies focused on emerging markets during these difficult times, Chinese companies have also started to focus on their own domestic market. Well-known home-grown brands such as Haier and Tsingtao Brewery both said at the roundtable that they will continue to concentrate on the huge domestic market. Potential is high especially in rural areas.

Sun Mingbo, President of Tsingtao Brewery Co., Ltd. said "We will focus on the domestic market first and then seek further overseas expansion. In fact, the Chinese market has accounted for a large proportion of the global brewery markets. Competition at home is just as tough as competition abroad."

The government's measures to boost domestic consumption is also boosting homegrown brands' confidence. Participants at the roundtable say the difficulties will not stop them from developing their own brands both at home and abroad.

Sun Mingbo said "We have prepared for the difficulties in the coming year. The brewery industry is relatively stable amid the turmoil. Besides, the central government's measures to boost domestic consumption will help drive the sector's development. Plus, the declining raw material prices will help in our further development."

Zhang Yongjie, Vice President of BJ Huaqi Info. (AIGO) Digital Techno. said "Our strategy of global expansion will not be drastically changed under the current difficult conditions. Although we are encountering some difficulties at the moment, we will not stop steps towards going overseas. Risks always come with chances."

China is expected to experience slower economic growth in 2009. Despite this, enterprises say they will continue with their strategies and do their best to get ready for the next wave of growth.

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