Fifteen Chinese brands on world’s top 500 list

Saturday, November 08, 2008


By Jawwad Rizvi
LAHORE: The Chinese products have flooded the world market in last few years outclassing products from other economies due to cheaper rates and variety.China is now the second-largest economy in the world with GDP of over $6.9 trillion (2007), measured on purchasing power parity (PPP) basis.Chinese goods are in demand throughout the world, popular in developed as well as developing economies, because of their low cost and good quality.From roadside vendors to uptown shopping malls Chinese products fill the shelves.Success of Chinese products is due to range of prices offered for particular product to different buyers. A Chinese company selling a particular product in the USA for $10 would be supplying similar product of lower quality to Pakistan and Bangladesh for $2 to $3, these products may look alike but there quality would be different. Better quality, good material and durability would definitely mean higher price.Traders in developing economies mostly import low quality Chinese products keeping in view the low purchasing power of consumers. In developed economies Chinese products have to comply with strict health, quality and safety standards.The World Brand Lab, Chaired by Robert Mundell, 1999 Nobel Prize laureate in Economics, ranked the top 500 brands and announced in July of these fifteen Chinese brands were listed among the world’s top 500 brands in 2008, based on their market shares, brand loyalty and global leadership.The three newcomers on the list were China National Petroleum Corporation, China Merchants Bank and Tsinghua Tongfang, while 12 Chinese brands retained their position from the previous year. The 12 brands include Haier, Lenovo, Industrial and Commercial Bank of China, State Grid, Bank of China, China Life, Changhong, China Railway Group, Air China and Sinopec. Also, in the 2008 list, China ranked the seventh in terms of the number of listed brands. This shows that the Chinese products popularity across the globe.Bilateral trade between China and Pakistan was more than $7 billion in year 2007 and the two sides have set a target of $15 billion annually by 2011. An increasing number of Chinese manufacturers are operating in Pakistan such as white goods maker Haier, telecommunications firm ZTE, electronic giant SVA and a number of motorcycle companies. The demand for Haier’s quality electrical appliances exists all over the world.The IMF predicts that China would grow by more than 11 percent and India at around 9 percent this year, with almost equal rates in 2008. To get advantage of Chinese growth the Pakistan needs closer ties with China. During the recent visit of the president Asif Zardari Chinese leaders vowed to enhance bilateral economic cooperation between industrial and business communities. China will launch a telecommunication satellite, PakSat-1R for Pakistan in year 2011. China Mobile has invested $800 million in its first international venture Zong and plans to expand Zong network in Pakistan.Huawei Technology a telecom solution provider is the only vendor serving all the mainstream telecom operators of Pakistan including PTCL, Ufone, Mobilink, Telenor, Warid and Zong etc. Also, San Ya Fang has donated equipment valued at one million dollars for establishing e-Government project initiative taken by the government of Pakistan.

Article was published in The News in Business Pages on Saturday.