The Long March A Long Way to Go for Chinese Entrepreneurs Prospects of a new direction 'Made in China' lost its novelty long ago. The label has become widespread in much of the world, affixed to shoes, toys, apparel and a host of other items produced for global companies. What is novelty, however, are China-made goods sold under Chinese brand names. Only a handful of Chinese firms so far have the money and the management expertise to establish international brands. Most of the vast remainders are struggling to get even national recognition. But the pioneering companies which have started exploring overseas market might be regarded as on the threshold of something big. Some believe that individually, with the help of enterprising local management or eager multinational partners wanting to add new products to their stable, Chinese brands could become a global phenomenon within a decade, marketed on quality and foreign appeal, as well as competitive pricing. Says Viveca Chan, Hong Kong based managing director at Grey China, an advertising agency: 'If there' s one country in the world that has ample potential for taking brands global, it's China.' Why going abroad? The concept of Chinese brands has been evolving through the 1990s, but is now getting greater attention at home. Although the domestic market is still robust, a handful of state-owned enterprises, or SOEs, including listed Chinese companies, are now looking to establish international brands because they believe the quality of both their products and their management has improved. Chinese joint ventures think their products can compete on quality with foreign brands anywhere, while enjoying the advantage of being perceived as exotic. Besides bringing in additional revenue, a global brand also burnishes a company's image in China, stimulating sales among status-conscious domestic consumers. For example, state-owned soft-drinks maker Jianlibao has developed its overseas market in part to 'establish a good image', which in turn enhances consumption at home, says Chief Executive Han Weixian. Difficulties on the way But building a brand takes time, money and marketing wisdom. Many Chinese brands have nudged into the international market on the back of competitive pricing and only a few have utilized other strategies. Jianlibao has highlighted its Asian appeal, presenting itself as the preferred sports-drink of China's athletes. Others like Haier, one of China's leading home-appliance producers, have pointedly avoided pricing strategy, competing instead on product quality and an efficient distribution and after-sales service. Of course, global sales don't mean global brands, as Grey China's Chan points out. And it's still early days for Chinese companies. For a start, investment funds for brand promotion are hard to obtain, says Chu Liangjin, the Qingdao-based director of the overseas division of China's Tsingtao Brewery. 'No more than 5% of our total export sales can be reinvested in promoting our brand overseas,' explains Chu, adding that Tsingtao is trying to persuade the foreign-currency authorities to change this standard practice for SOEs. With the government's emphasis on preventing the outflow of foreign currency, the chances of the restrictions being lifted are small. Although targeted only at SOEs, the 5% limit is bound to hamper Chinese brands. Jianlibao, for example, has invested about ＄10 million to sell its brand in the U.S. market, but Li Jingwei, the company's general manager, knows that's just a drop in the bucket. He believes that to successfully generate brand recognition among Americans, the company needs to spend at least ＄50 million to ＄100 million on marketing. He has no doubt that consumers will like Jianlibao's range of sports and soft drinks, but explains that