Starting out at the top

Lex Keijser, H&M’s general manager for China and Singapore, is well aware of such a trend and has more than capitalized on the concept to boost sales.

"We release all our collections worldwide. Most of the products in the outlets, be it in Hangzhou, Shanghai, London, New York, or Paris, will be the same everywhere in the world."

To cater to customers’ needs, H&M offers various style design concepts. "We have eight to 10 campaigns every season worldwide. Basically there are always new products coming into H&M stores every day," Keijser said.

'Early education’

For some product categories that previously barely existed in China, the knowledge gap between the Chinese customers and their foreign manufacturers are so huge that brands often have to play the role of "early educators".

Although several Chinese wineries claim to have a history of almost a century, the concept of wine is actually one that is imported from Europe. Compared with the traditional liquor baijiu, the market for European wines is still in its infancy in China.

Frederique de Lamothe, director of Alliance des Crus Bourgeois du Medoc in France, an association of 250 French chateaux, said that he feels more of an educator than an entrepreneur.

Unlike the high-profile French wine Lafite, which is considered a symbol of wealth, many of the chateaux "present high-quality wines that are affordable and good to share", De Lamothe said.

"We are not in the same position as that of the factory-produced Chinese wine brands like Great Wall and Changyu," De Lamothe said. "Wines from these manufacturers are mass produced. Our wines come from over 250 family-owned chateaux with a rich legacy in wine-making and a wider selection of products.

"The Chinese market has grown from virtually nothing six years ago. It has developed much faster than we thought," she said.

Though most of the wines from the chateaux are sold to high-end Chinese consumers, there are still some wines in the 10 to 25 euros ($12-30) range that are affordable for working people and ideally suited for special occasions like weddings and birthday parties, De Lamothe said.

Affordable price does not necessarily mean lower profits for the chateaux. Last year De Lamothe held a wine tasting event in Beijing, and sold nearly 500,000 bottles of wine in less than a week, and more than 1 million bottles in a month.

As an early educator, De Lamothe often has to convey the basic knowledge of wines to Chinese consumers.

"Branding in China involves more explanation," she said. "In traditional markets like the US, they already know about wines; but in China we need to tell our history and basic things like how to match wines with different dishes."

Localization mantra

Although being European or US is often welcomed and respected by most Chinese consumers, it does not necessarily mean that the brand is in a safe harbor. Whether intentionally or forced to upgrade in China, these brands face a common task: to localize, so that they can keep in line with Chinese culture that won’t easily change.