Summary
This article is must reading for anyone in China and anyone planning their next step. The new era which we are entering will have China no longer as the workshop, but Chinese brands are the next logical step in this evolution. Readers learn where they may have erred on strategy, namely moving whole hog into China while sacrificing domestic production. The end result, increasing prices do to environmental breakdown, have been forecasted by the World Watch Institute for the past 20 years. It could finally spell the end for undereducated U.S. centric thinking CEOs, but that is of course doubtful knowing that the board members are most likely cut of the same cloth.
Analysis
The Chinese strategy has always been for the West to stick its neck out far enough and to educate the workers well enough and to show what infrastructure is absolutely necessary before cutting off the heads.
Look for 2009 to 2010 as the post olympic branding orgy ends in 2008 to be the years that Chinese brands start to make major pushes into U.S. retail.
Look for Chinese companies to go on a brand buying spree as stock prices tumble along with U.S. currency devaluation, this could happen as early as October, 2008, after the torch is finally moved on to its next destination.
Yes, the best is yet to come.
This author consults with leading institutions through GLG
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
