Linguistic, Cultural, and Economic Concerns of Brand-Locality Inconsistencies
The allure of the Greater China market has been on the radar of foreign firms for decades. The sheer size, and in many instances, the wealth of the Chinese-speaking world has been a considerable attraction to many Western firms.
To tap the large Chinese markets, several foreign firms have seized opportunities to develop their Chinese presence through local investment in branding. Through rigorous branding, they were able to simultaneously gain footholds across different regions in the Chinese-speaking world.
Yet many of the same firms also came to realize that the Chinese-speaking market is not a singular monolith. Not only are there many political boundaries among the mainland, Hong Kong, Macau, Taiwan, and Singapore, there are numerous cultural differences and various levels of economic development shaped by the diverging heritages of and sometimes the political policies enacted in the different localities.
Such differences forced numerous foreign firms to deliberately distinguish their strategies in the different Chinese-speaking localities. For the duration of this article, the focus will be on the different brands used by foreign firms in the mainland Chinese and Hong Kong markets. A small scale research, conducted by the LABReport team, revealed the pervasiveness of such brand-locality inconsistency. Of the 5 top automobile manufacturers in the world, 4 of them have at least one brand name with different translation in Hong Kong and mainland China. Research showed similarly high percentages among top manufacturers in cosmetic and athletic products.
The reasons for foreign firms to intentionally utilize different Chinese brand names in mainland China and Hong Kong can be classified into three distinct and well-established reasons:
1. The different brand names reflect the difference between a strong affinity toward classical Chinese tradition in Hong Kong and a markedly pro-Western attitude in mainland China.
2. The different brand names consider the pronunciation difference in commonly used Mandarin dialect in mainland China and Cantonese dialect in Hong Kong.
3. The different brand names present a well-considered product differentiation strategy by the firms, maximizing profit in each market by targeting different consumer groups in mainland China and Hong Kong.
1. Cultural identity necessitates product identity
Different localities have different cultural attributes. Understanding of the subtle differences needs to be reflected in separate branding. This is certainly the case between Hong Kong and mainland China, where different political economic backgrounds have led to divergence of what is considered attractive in the local cultures.
The traditional mindset of the Hong Kong resident has been conveyed through branding of many foreign products. Japanese car brand Lexus is marketed as ling zhi. Ling means "surpassing" and zhi means "ambition" in classical Chinese. A poetic phrase "surpassing ambition," sourced from classical literature, gives Lexus an attribute of graceful class deep-rooted in Chinese tradition.
- Yet, in Mainland China, the grand, the powerful, and the big have all become symbols that can raise the perceived social status of their possessors, while tradition is often looked upon as backward. Car brand names must conspicuously cry out the exalted greatness of the product. If this can not be achieved during translation, a literally meaningless but completely foreign-sounding brand name is preferred on the mainland. For Lexus, the mainland brand is lei ke sa si . The Hong Kong brand name cannot immediately bestow grandeur upon the product's user, thus the foreign-sounding name is kept.
Also, ling zhi is used as a registered trademark for several small Chinese companies in the field of office products, lighting, and chemical production. Thus, the legal problems with brand registration may have been a further obstacle for ling zhi to be the official brand name of Lexus on mainland China.
The affinity of the mainland Chinese with foreign names comes from a widely held belief that foreign products are more expensive and higher in quality, indirectly caused by the established association of "Made in China" and anything Chinese-sounding with low price and low quality.
2. Local language determines local suitability
The sometimes vastly different pronunciation of same Chinese characters in Mandarin and Cantonese has strong influences on how foreign brand names are directly transliterated in the mainland and Hong Kong markets. Characters with strong resemblance to the original foreign name in one dialect have the tendency to become quite far fetched in the other dialect.
For example, in the Hong Kong market, Lamborghini, the luxury Italian automobile brand, is transliterated as lin bao jian ni. Roughly pronounced as "lam-bou-gin-nei," the four-character phrase, although having no literal meaning, has a strong phonetic proximity to the original Italian term.
However, the same four characters in Mandarin become "ln b?o ji?n n," losing much of the closeness in sound as the "lam" sound becomes "lin," "bou" (similar to "bor") becomes "bao," and the "gin" sound for "ghin" becomes "jian." The phonetic differences forced Lamborghini to adopt a new term for the mainland Chinese market: lan bo ji ni. Pronounced "ln b j? n," the term in Mandarin has a much stronger phonetic resemblance to the Italian name.
While the firm is sure to incur additional costs to maintain two brand names in two separate markets with extra efforts in production and marketing coordination, enabling the consumers in both markets to have a strong phonetic recognition for the original foreign brand name is a benefit than can easily offset the coordination costs.
The enormous size and combined wealth of the mainland market compared to those of Hong Kong gives way for much greater justification for investing in new brand names on the mainland, as the brand investments have much greater probability of yielding higher returns than the brand maintenance costs on the mainland than in Hong Kong.
3. Brand differentiation marks product differentiation
Often, the firm needs to cater a product to audiences in different markets in order to generate the greatest potential profit for the firm in all markets. Targeting various consumers requires the product to be presented in different ways, giving it distinct characters and attributes to reflect the differing needs and wants of its targeted audiences.
The most direct way for the foreign firm to achieve such differentiation of the same product is by giving the product different brand names in the various markets in which it operates. Through research into market segmentation, the firm can approximate the relative size and wealth of each consumer group with their own preferences as determined by attitudes toward products and priorities in spending. By emphasizing different qualities of the product, the firm can appeal to the largest market segments with the greatest combined wealth while being suited for the purchase of the marketed product.
Marketing under different brand attributes in Hong Kong and mainland China have been used to great effects by many business-to-consumer multinationals through use of almost completely mutually unrecognizable brand names. There are the vast economic disparities between wealthy, urban Hong Kong and mainland China, where majority of population still lives in low-income rural areas despite recent emergence of an urban middle class.
According to a report by Hong Kong Trade and Development Commission (HKTDC), the economic difference is reflected on the differing attitudes of typical consumer in the two markets. The HKTDC report notes that most Hong Kong consumers have strong concerns for product image and design beyond the practicality of the product while the majority of mainland Chinese, save for few urban upper class families, are still mostly concerned about the product being good at its functions.
The automobile industry has been especially keen on such difference in attitude. Japanese car maker Mazda uses the name ma zi da in its mainland Chinese market. 'm?' means horse that has been used as a transportation tool since long ago, 'z' means automatic, '? d' means reach. 'An automatic horse for you to reach everywhere' is a strong demonstration of Mazda vehicles reliability and durability.
Mazda's brand in Hong Kong, however, is wan shi de, literally meaning "ten thousand matters," connotes "all things," while de means to capture or to gain. "Gaining all things" has no obvious associations with automobiles, but to the image-conscious Hong Kong consumers, the auspicious-sounding name does bring a strong feeling of optimism and class to the brand. Practicality vs. image is but one of many ways with which an identical product is differentiated in the two markets.
All in all, the growing trend of foreign firms marketing in both the mainland China and Hong Kong markets has been to create a unique and singular brand image across the Chinese-speaking world. Although the HKTDC voices the continued lack of acceptance for direct Cantonese translations from Mandarin in Hong Kong, such phenomena are bound to decrease over time as the socio-economic and geographic proximities of mainland and Hong Kong makes existence of separate brands both costly and unnecessary. That being said, until the supply chains, culture, and perhaps even the language of Hong Kong and China become more integrated, developing separate brand names for Hong Kong and Mainland Chinese markets is a worthwhile consideration for foreign companies.
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