Globalisation and Advertising in Emerging Economies: Brazil, Russia, India and China by Lynne Ciochetto

Author:Lynne Ciochetto [Ciochetto, Lynne]
Language: eng
Format: epub
Tags: Ethnic Studies, Social Science, Political Science, Regional Studies, General
ISBN: 9781136504464
Google: NStUAQAAQBAJ
Publisher: Routledge
Published: 2013-10-11T09:38:48+00:00

Matsushita (Panasonic) Procter &Gamble

Colgate Palmolive

555 State Express (cigarettes)

Rejoice Shampoo (P&G)

Source: Advertising Age (1994) cited in Ha, L. ‘Concerns about advertising practices in a developing country: an examination of China’s new advertising regulations’ (1996). International Journal of Advertising, Vol. 15.

advertising expenditure but by the end of the decade Chinese advertisers were the largest spenders.

The FMCG sector grew in importance. Some foreign companies faced the problem of product cloning. At one point Procter & Gamble estimated that 15–20 per cent of its products on shelves were clones (Saywell, 2000, cited in Sinclair, 2009). For multinational companies the costs of expanding into the Chinese market have been high. Based on experience in China since 1984, a spokesperson for the American company Kraft (Maxwell House coffee, Oreo cookies and Tang) said that, to grow in China, companies needed to spend more than 10 per cent of their total revenue (‘China holds promise for Kraft’, Financial Times, 2009).

Many new products, both local and foreign, have been launched onto the Chinese market in the last two decades. There is still a strong loyalty to local products. The largest foreign FMCG companies, especially Procter & Gamble, have massively increased their advertising expenditure since the early 1990s. In that decade large Chinese companies started to develop brand profiles, including computer manufacturer Lenovo (Legend), Haier whiteware, Wahaha soft-drinks and Olive shampoo. More private Chinese companies started to advertise their products. By the late 1990s some of these Chinese brands were challenging western brands for market share (Ewing et al., 2001). The top brands in China in 1999 included China Telecom, Mudan Credit Card, Industrial and Commercial Bank, Sohu. com and Legend computers. Leading foreign brands such as Coca-Cola, KFC and McDonald’s came lower down the list (Kilburn, 2001). By the end of the decade China was one of the few countries that managed to reverse the pattern of foreign dominance and in 2000 for the first time the ten most advertised brands were local and accounted for 7 per cent of total advertising expenditure (Madden, April 2001). The dominance of local companies in terms of advertising expenditure declined in the 2000s and by the end of the next decade there were equal numbers of foreign and local companies in the list of top advertisers.

In the early 1990s, when the Chinese Government loosened the regulations on advertising, the number of firms offering advertising services increased dramatically from 13,000 in 1991 to 86,000 in 1997 (Prendergast and Shi, 2001). The number of local advertising agencies was very high. In the mid-1990s there were 25,443 official advertising agencies employing more than half a million people (Jones, 1997). The number of foreign agencies in China was relatively small, increasing to around 550 from 1990 to 1994 (Prendergast and Shi, 2001). The billings of these agencies also grew dramatically. The revenues of the top ten agencies tripled between 1993 and 1995.

In 1992 Dentsu, Young and Rubicam, the top agency in the world that year, was the only foreign agency in the top ten agencies in China rated by business volume (de Mooij, 1994).

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.