Brand Strategies of Firms from Emerging Economies

During the first half of 2009, the FTSE International Emerging Markets Index was up 41.1 per cent, whereas the FTSE All World Developed Markets Index was up by only 7.2 per cent (Oakley, 2009). Still, most of the brands originating from emerging economies are practically unknown by the majority of Western consumers. In order to increase their profitability by ‘climbing up the value chain’, many headquarters of emerging-economy firms in Bangalore, Beijing, Moscow, Mumbai, São Paulo, Shanghai, Rio de Janeiro, St Petersburg, Shenzhen or Tianjin have realized that one of the critical success factors for their international reputation is related to their brand image. A number of new brand strategies have been developed and implemented by these firms in order to achieve a better status up the value chain. It is a understatement to state that the development of China in the last 20 years as a major economic power, mostly due to its enormous manufacturing capabilities, has been largely facilitated by the reputation of Chinese brands. It is a well known fact that the image of emerging economies in the West is not one of innovators and brand developers. Consequently this reality contributes to a deficiency in the country of origin (COO) effect in the internationalization of the firms from this part of the world. For this reason the definition of an international brand strategy is of core concern of many firms from emerging economies.