UK Launches R&D Service to Help Chinese Brands Enter Global Market

LONDON and BEIJING, September 23, 2011 -

The Institute of Practitioners in Advertising (IPA), the trade association and professional institute for the top 250 advertising and brand communications agencies in the United Kingdom, has today (23^rd September) launched a research and development service for Chinese brand owners seeking to go global. It has been developed in recognition of a new Memorandum of Understanding between the IPA and the China Advertising Association.

Called IPA ‘International Brand Incubator’ (IBi ™), the new consumer research and development service draws on the expertise of UK-based planners and creatives within IPA member agencies to provide Chinese companies with the opportunity to test the consumer appeal of their brands outside Asia.

Once the process has been completed the brand owner will be given an exclusive report with special analysis of the competitive global brand environment, key consumer considerations, and an overall rating of brand potential, as well as guidance on brand differentiation strategy and the role that the IPA can play in this process.

Commenting on this new IPA initiative, Ms Nicola Mendelsohn, IPA President and Executive Chairman and Partner, Karmarama said: “The UK is uniquely placed to help Chinese brands understand their global potential.  We are the most advanced nation in the world for cultural and creative insight, and a world leader in brand understanding and communications strategy.  Being a small island nation is a strength. We reflect in microcosm what the world is thinking and doing.”

Commenting on this new IPA initiative, Ms Janet Hull, IPA Director of Marketing said: “This is the perfect time for Chinese companies to take their brands global via the UK. The relative strength of the Chinese economy makes brand investment highly efficient. All the economic indicators show that those companies that invest in brands in an economic downturn reap extraordinary rewards in terms of market share

gain and profitability.”

Commenting on this new IPA initiative Mr Sebastian Wood CMG, Her Majesty’s Ambassador to the People’s Republic of China said: “This exciting initiative, underpinned by the signing of a Memorandum of Understanding between the IPA and the China Advertising Association, in the advertising and brand communications sector, has grown from the mutual trust and confidence cultivated between the two organisations over the last four years.  The UKTI team in China welcomes this initiative and is available to support the internationalisation plans of Chinese brand owners who are seeking to use the UK as their springboard into new global markets.”

The IPA is undertaking a UKTI-backed trade mission to Beijing and the China International Advertising Festival in Shenyang led by IPA President, Nicola Mendelsohn, designed to promote the UK as a creative and innovation hub to the world.  Participating UK agencies will include Addiction Worldwide, Bray Leino, The Brooklyn Brothers, Karmarama, MBA and RKCR/Y&R.  

The trip will run from 22nd-27th September and will include a series of

workshops, seminars and networking events with Chinese brand owners, Chinese ad

agencies, government and students.

Notes to editors:

1. Why the UK?*

• The most open economy, ranked first in Europe for ease of doing business
• One of the most transparent countries in the world
• The number one gateway to Europe and the USA
• English speaking; but a melting pot of all world nations
• On the Greenwich meridian (can do business with China and USA on the same day)
• Special relationship because of the Olympics
• 400 mainland Chinese companies are already in the UK
• China Business Association (CBA) formed in London in 2011
• From mainland China, the UK attracted 74 Foreign Direct Investment projects in 2009/10, with 1,572 associated jobs, a 25% increase in projects and a 76% increase in jobs.

2. Why the IPA?

• Important - The IPA’s members lead the world in creativity and effectiveness
• Professional - The IPA leads the world in professional qualifications for practitioners
• Accessible - The IPA opens the door to the top 250 advertising and brand communications in the UK
• Over 60 IPA member agencies have offices or affiliates in China
• All consumer-facing FTSE 100 companies use IPA member agencies
• The UK Government uses IPA member agencies
• More US brands use the UK as a springboard to the world than any other nation
• The prestigious IPA Effectiveness Awards showcase and reward campaigns that demonstrate their marketing payback, and provide the richest communications database in the world.

3. Why now?

Reasons for Chinese brands to go global:

• Increased international brand competition in domestic markets brings need to assert international credentials for Chinese brands
• Economic downturn in western economies offers competitive advantage to Chinese brands
• Brand investment in a downturn is highly efficient

4. Global status of Chinese brands

• The number of Chinese brands in the global Top 100 (Millward Brown Optimor: BrandZ) has risen from 8 in 2010 to 12 in 2011. (By comparison the USA has 39 brands in the Top 100).
• However, most of these brands are still B2B and most rely on the growth of the Chinese market for their growth: China Mobile, China Construction Bank, Baidu, China Life, Bank of China, Agricultural Bank of China, Tencent, PetroChina, Pingan, China Telecom, China Merchant’s Bank.
• Some Chinese consumer brands are now becoming known globally, but they still do not have a strong differentiated brand presence: BYD, Haier, Huawei, Lenovo, Pearl River.
• The IPA believes that in the next 3-5 years, at least 20 Chinese consumer brands have the potential to go global.

The Institute of Practitioners in Advertising (IPA) is the trade association and professional institute for the UK’s leading advertising, media and marketing communications agencies. Established in 1917, the IPA exists to protect, promote and anticipate the needs of its member agencies and to negotiate on their behalf with unions, media bodies and government departments.

For more information contact:  Pamela Perl, IPA Marketing Manager:
 pamela@ipa.co.uk

Institute of Practitioners in Advertising
44 Belgrave Square, London SW1X 8QS
fax: +44(0)20-7245-9904
e-mail: sylvia@ipa.co.uk  

website: www.ipa.co.uk

Telephone: +44(0)20-7201-8247