Why did HTC delay launching as a global brand in China?
Taiwanese smartphone maker HTC has moved into the Chinese market this week, with the introduction of a series of models under its own brand name and partnerships with two key Chinese firms.
In a bid to develop market share in the world’s largest mobile phone market, the company is joining forces with China’s largest mobile operator China Mobile and Gome Electrical Appliances Holding, China’s largest electronics retailer, to market HTC phones.
An article in the Financial Times yesterday, highlights the fact that despite Taiwan’s proximity to China and a shared language and culture, HTC chose to launch first as a brand in Europe, followed by the US, before introducing itself to Chinese consumers.
According to the FT, there are a number of reasons why the company has thought global first and local second. The challenge for Taiwanese tech players has been to find global brand solutions, in order to turn themselves from contract manufacturers, operating on slim margins, into global brands. Some Taiwanese companies have tried to operate all retail outlets themselves, or relied on national-level operators. In a country the size of China, provincial networks and outsourcing are more effective.
Speaking to the FT, Peter Chou, HTC chief executive said, “To build a global brand is difficult, and we had no experience. We needed to build localised marketing operations.” “Now, as our global brand recognition has risen steeply, the time is right,” he added.
Since 2003, HTC has been working with Shanghai-based strategic partner Dopod Communications Corp to deliver models carrying the “Dopod” brand, although HTC branded phones were unavailable in China. If the company’s global brand marketing efforts in China go to plan over the next six months, according to the chief executive, HTC is likely to merge with Dopod.
Tags: Global Brand
