China’s Labels Have Upped Their Game


As could probably be expected, the growing number of wealthy Chinese individuals, in addition to the arrival of a burgeoning middle class, has significantly fueled the desire among top government officials for increased domestic consumption. Although Western goods, including fashion items, vehicles and wine, will forever remain the subject of near obsessive attention in China, a significant number of industry leaders believe the time is right for the emergence of a thriving domestic marketplace.

In order to ensure that Chinese-made products are able to compete with foreign counterparts, many businesses are investing significant amounts of financial resources into the development of recognizable brands and labels. Although it would seem likely that Chinese companies would turn to their own domestic agencies in order to produce the labels for their products, this isn’t necessarily the case.

Recently, European manufacturer Rako has announced that they are planning on developing and implementing a vast new development infrastructure in China in order to ensure that they can fully take advantage of the newly formed retail scene here.

Another strong indicator that the Chinese markets are developing at a healthy pace is a recent report that major Europeans and American retail chains have begun to invest in second and third-tier Chinese cities, far removed from the urban epicentres of Beijing and Shanghai. Up until recently, these areas have received scant attention from international retailers, due in large part to the fact that the population has not had the inherent wealth to support the expenses associated with setting up a new retail base.

Regardless of the level of foreign attention, many view it as a strongly positive sign that Chinese manufacturers and marketing agencies are stepping up to the plate to ensure that their own domestic enterprises stay well on the path towards providing some level of competition for foreign entities. Although it remains to be seen how effective these moves are, any level of development is bound to produce positive overall results for all parties involved, including foreign investment companies who are eager to tap into the vast pool of riches that has been nurtured and developed in China over the last several years.