Strategy Analysis International

China: getting in effortlessly via brand licensing

14-09-2017

If your brand is not protected in China, do it now. It only costs a few hundred dollars and could cost you a lot more if you don’t.

Chinese companies are highly competitive not only in our backyard, but even more so in theirs. They are thus eager for anything they can do to get a leg up on the local competition.

One thing they want for that leg up that you can supply with little effort is your brand. Foreign brands are worth a lot in China. Anything that sounds foreign or has a familiar-sounding foreign name means differentiation from the rest of the local Chinese products — and foreign brands still stand for superior quality.

You don’t have to target only your own product category: foreign brand names can be used for categories you might never consider. Think Black & Decker lingerie or Princess Tam Tam power tools. And you don’t need to set up your own company or distribution system in China to generate royalties. They roll in effortlessly once you find the right local licensee.

We work with Broadbrand, active in Hong Kong and China to identify and monitor reliable licensees. They have been doing this successfully since 2011.
In December, Broadbrand will be in Paris to meet selected companies.



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