Published: 19:57, April 24, 2025
Manufacturing firms urged to strengthen brand-building in global expansion
By Zhou Mo in Shenzhen
Workers assemble parts at a children wheels factory in Pingxiang county, North China's Hebei province, Aug 19, 2024. (PHOTO / XINHUA)

Chinese manufacturing enterprises need to intensify efforts at brand-building to enhance their reputation and competitiveness as they step up global expansion amid uncertainties brought by the United States’ tariff hikes and a changing procurement landscape.

Industry insiders and business representatives in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) made those suggestions in Shenzhen on Thursday.

Against the backdrop of a complex international economic and trade environment, Shenzhen’s manufacturing enterprises have shown resilience by continuously innovating products and exploring emerging markets, said Xue Yuanpeng, deputy director of the trade and investment department of the China Council for the Promotion of International Trade Shenzhen Municipal Committee.

READ MORE: China's high-end manufacturing sector sees robust growth

“In the wave of digital and intellectual transformation, Chinese manufacturing enterprises not only need to enhance their technological innovation capabilities, but also build a globally recognized brand image.”

International trade is facing mounting uncertainties since the US announced a steep increase in “reciprocal tariffs” on imports from China and other countries, prompting Chinese manufacturers to diversify their customer base by exploring emerging markets.

The challenges Chinese manufacturing firms face are compounded by a more complicated overseas procurement process. A report released by LinkedIn on Thursday said that the procurement cycle of overseas manufacturing is getting longer and more complicated.

Seventy-eight percent of global buyers in manufacturing surveyed said the period has become prolonged than a year earlier, with each stage taking around a month. The same proportion of buyers said their procurement teams have scaled up, indicating growing caution over overall costs among businesses, said the report, which based its findings on interviews with over 1,700 buyers globally.

To enhance their reputation and competitiveness in emerging markets and to navigate the changing dynamics in international trade, it is essential for Chinese manufacturers to value brand-building, Vianne Cai, head of marketing solutions at LinkedIn China, said.

“Such changes force manufacturing companies to rethink marketing strategies and create larger space for overseas business growth by enhancing brand-building capabilities overseas,” she said.

As China’s manufacturing powerhouse, the Guangdong-Hong Kong-Macao Greater Bay Area plays an important role in driving the country’s industrial development.

According to official data, the industrial output of Guangdong province was worth 20 trillion yuan ($2.74 trillion) last year. Its manufacturing industry is accelerating the pace of transformation and upgrades, and becoming more advanced.

The value added of the province’s advanced manufacturing and high-tech manufacturing increased 6.6 percent and 10.2 percent year-on-year respectively, in 2024. The two segments’ proportion of the province’s large industrial enterprises rose to 57.1 percent and 32 percent, respectively.

Ryan Yan, head of overseas sales and marketing at Horion, an interactive flat panel and commercial display manufacturer based in Shenzhen, said the company is focused on expanding its footprint in countries involved in the Belt and Road Initiative (BRI).

READ MORE: China's tax data shows steady Q1 growth in manufacturing

“Our business grows well in Southeast Asian markets such as Vietnam, Malaysia, and Middle Eastern markets like United Arab Emirates. We plan to further tap emerging markets, including India and African countries, based on these pivots,” he said.

Yan said the company will strive to strengthen its presence overseas by stepping up brand-building.

“Overseas markets place a high value on one’s brand story. We will combine online and offline marketing channels, for example, by increasing exposure on social media platforms like Linkedin and taking part in industry expos, to enhance our brand reputation and gain more market share.”

 

Contact the writer at sally@chinadailyhk.com