A fine judge of quality, distinction and prestige

Consumer brand veteran Arnaud Debane has been in China for the past decade and says he is in a special place at a very special time

Even after living in China for nearly a decade, Arnaud Debane still says he is surprised by the country on a daily basis.

As the general manager of Superbrands China, the 45-year old is responsible, he says, for giving Chinese customers the best possible insight into the consumer brands most influencing their lives.

Established in Britain in 1994, Superbrands claims to be the world's largest independent "brand researcher and arbitrer".

That means the company highlights the brands preferred by local consumers in different markets and offers them a dedicated brand "status", as independently selected by experts and consumers.

"I feel I am seated in the first row of a theater , with a complex plot unfolding in front of me involving many overlapping stories," he says.

"New characters appear from time to time, and the story is so absorbing."

Debane has a master's in corporate strategy and marketing from the Haas School of Business at the University of California. He has 20 years experience, mostly in Asia, and is a regular speaker and lecturer on branding and brand development in China.

He couldn't be clearer about how he views the current Chinese consumer boom.

"China's current changes are the most significant economic and geopolitical event of the early 21st century," he says.

"This impressive progress comes with challenges and uncertainties, but I feel I am in a special place at a very special time."

Superbrands first started in 1994 as a BBC radio program in London to inform British consumers about branding and leading brands.

Today, it has become one of the world's largest independent brand researchers and offers what it calls global brand promotion platforms in 90 countries.

It came to China in 2011 to focus on the growing consumer market and the emergence of Chinese brands on the global stage.

"We aim to develop an undisputed award platform to serve Chinese consumers and inform them about the history and values of some of their preferred brands," Debane says.

"Superbrands should represent quality, reliability, distinction, reputation and prestige.

"The definition of a 'superbrand' is that it should have established the finest reputation in its field and offer consumers an emotional and tangible benefit over competitors, which consumers want, recognize and are confident about investing in."

While Debane is aware that there are already numerous brand awards in China, he firmly believes Superbrands has the competitive edge in terms of independence and trust.

"Our results are based on consumer research and we are fully transparent in the brand selection process."

To ensure that impartiality, every year it selects its "super" brands through a research program carried out by IPSOS China, interviewing thousands of respondents in over 200 cities across the country.

A council of marketing and branding experts oversees the brand selection process under 130 product categories, and awards them their Superbrand status.

Less than 1 percent of brands mentioned by consumers eventually end up being becoming "super brands".

"We generate revenues from participating brands to sponsor our research and marketing activities. Participating brands do not pay to be rated but pay to be part of the Superbrands promotion program so brands cannot interfere in the selection process.

"Our consumer research shows that market leadership and peer recognition carry more weight with Chinese consumers than anywhere else around the world, and that they translate into more purchases and recommendations."

Over the past four years, the French brand expert says he has been in an ideal position to experience firsthand the massive expansion in China's consumer market.

He says some foreign brands have failed dramatically to successfully penetrate the Chinese market simply through a fundamental lack of understanding of what makes it tick.

"The most common mistake made by foreign businesses is not researching the market, and to consider China as a single consumer market," he says.

"The second is to think they can sell one product to every Chinese person and become rich by doing so.

"But failing to appreciate the sheer scale of China, its huge cultural diversity and complexity, is the quickest and safest way to lose a lot of money."

Debane says overseas brands especially need more time and market research than local rivals to understand the different Chinese regions.

"In many regards, China is a set of several regional markets, each with its own culture, consumer preferences and distribution systems.

This is relevant to all products, but critical to food and beverage markets, fashion and other fast-moving consumer goods, or those products sold quickly and at relatively low cost, he says.

"Then within each regional market, they must consider the leading cities, normally tier 1 or 2 cities, that will influence consumer preferences and set standards and preferences for their region.

"So the challenge for foreign brands is knowing which regional markets to focus on, how they can become influential in large cities, and also how they can grow a presence in the smaller ones.

"It's enormously difficult to get right," Debane says.

"For smaller foreign players or those who are looking to enter the market, the conditions are complex and more competitive than one or two decades ago, especially for those that can't create a significant niche.

"Smaller foreign companies must view China as an opportunity, but also realize the barriers to entry.

"Obviously Chinese business people are more familiar and sensitive to those differences and quicker to identify and grasp local opportunities - so about two-thirds of the brands eligible to join the Superbrands program here are local."

But equally, with the Chinese government's great push for globalization, the goal now for local brands is gaining recognition overseas, too, and much like their international competitors in China, they are finding that a challenge.

"Some Chinese brands have succeeded in building awareness in the fast-growing local market, but building a global brand requires a different approach and a different set of management and marketing skills," Debane adds.

"Chinese brands need to develop a targeted brand image, with a set of consistent values, as well as higher quality and service levels.

"This will be even harder in developed and mature markets where incumbent brands have been present for generations," he says.

"This may be an explanation why, in the past, Chinese companies have been more comfortable buying and nurturing foreign brands than building their own in foreign markets."

Debane adds that as the Chinese economy continues to strengthen, it is only a matter of time before more of its home-grown consumer names become established on the world stage, and he believes Superbrands will become even more important in introducing well-known foreign brands to China and promoting Chinese brands in the other direction.

"We are still in the process of building our awareness here. Several leading brands such as Philips, Nippon, Lay's or Tsingtao beer, have already recognized our value and are now regular partners."

He adds that he feels there is a huge desire in China for its brands to become globally recognized.

"I always enjoy building new professional relationships, and from that point of view, China has met all my expectations.

"I admire the Chinese people for their energy and business sense.

"But it will still take more time and effort on our part, working closely with leading brands, to be recognized as the undisputed consumer brand awards platform in China."

liulu@chinadaily.com.cn

(China Daily European Weekly 07/11/2014 page29)