Most Americans are comfortable buying US-brand products made in China, but buying Chinese brands is a different game. Despite the ubiquity of Chinese-made goods in Americans' everyday lives, research and anecdotal evidence suggests that association with China hurts rather than helps Chinese brands. This is hardly surprising, given that American images of and attitudes toward China have historically been divided and conflicting.

Look no further than the high-profile purchase by Lenovo of IBM's PC business and its flagship brand ThinkPad in early 2005 for evidence of how these perceptions can affect public acceptance of Chinese firms.

Put simply, in the minds of the American public, the acquisition of a piece of IBM is tantamount to buying a piece of American heritage. The symbolic weight of the nation-state was ever more potent in this commercial transaction.

Emotional chord

Branding is not merely about product differentiation. More importantly, it's about identity, attachment and trust.

It must strike an emotional chord with customers and inspire loyalty through communicative devices ranging from brand names and logos to strategic deployment of marketing tactics.

Unlike original equipment manufacturer products, brands command a highly visible presence in the market and their power can be deeply personal. But brand appeal is also fragile. It can be easily diluted and even destroyed if not well cared for.

The vast majority of the world's most valued brands, as rated by Business Week and Interbrand, originate from the United States and Western Europe, with a few from Japan and South Korea.

One key difference between what Chinese companies face and what Japanese and Korean firms once encountered in their brand expansion into the US market is the broader political environment of the marketplace. So far, none of the strongest brands have come from countries with political systems that are starkly different from that of the United States.

1

2

(For more biz stories, please visit Industry Updates)