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From Cost to Brand, How Can Chinese Companies Win the Competition in Global Markets

In the context of the gradual changes in the global semiconductor market and the deepening of geopolitical influence, Chinese semiconductor companies have explored overseas markets and gradually accumulated a set of effective overseas brand expansion strategies. On November 8, 2024, the 2024 International Component Industry Chain Global Expansion Forum was successfully held, at which Simon, the founder of Yeehai Global, reviewed the development process of domestic industry, summarized and shared the experience of semiconductor component products in expanding overseas markets over the years, and discussed how Chinese enterprises can gain competitive advantages in the international market from manufacturing to branding.

1. From manufacturing to branding, the advanced road of China's semiconductors

Simon first recalled the changes in the domestic semiconductor industry since the 90s, pointing out that the main raw materials for semiconductor manufacturing in the early days, such as capacitors, resistors, magnetic cores, etc., mainly relied on imports, and with the gradual improvement of the domestic industrial chain, today's semiconductor component manufacturing has almost been able to achieve national production. Due to the policy influence of the United States and other countries, it has promoted the domestic substitution of high-end components. Many enterprises take this opportunity to continuously improve their independent innovation capabilities and gradually promote the localization process to the international market.

Photo: Simon initiated a speech on the theme of

Photo: Simon initiated a speech on the theme of "Brand Expansion Strategy in Global Markets"

2. Building trust: How high-end devices break into the global supply chain

For a long time, world-renowned companies have preferred to use American and European brands in component procurement to avoid potential quality risks, but the epidemic has changed this situation. After some Chinese companies were forced to get application opportunities overseas, they gradually won recognition for their cost-effective and quality advantages. This passive recognition has gradually translated into trust in Chinese brands, making it possible for domestic high-end devices to enter the global supply chain. Citing the success of Chery Automobile as an example, Simon pointed out that even if it is not optimistic at first, as long as there is quality support and long-term market development, the brand image and recognition will continue to rise.

3. Localization strategies to adapt to different markets

Regarding the overseas strategy, Simon mentioned that differentiated plans need to be formulated in different market segments and countries. For example, in the new energy market, with the decline in battery costs, the integrated system of optical storage and charging has gradually become a trend in markets such as Europe. In these markets, providing plug-and-play modular design solutions for specific application scenarios has become the key to the success of component companies entering the supply chain. In addition, in order to accelerate the promotion process, Chinese companies can further enhance the credibility and influence of their brands in the region by partnering with well-known local enterprises to endorse cases.

Photo: Simon pointed out that differentiation needs to be developed in different market segments and countries

Photo: Simon pointed out that differentiation needs to be developed in different market segments and countries

4. Providing high-quality technical services is the magic weapon to win

In addition to cost performance and product quality, high-quality technical services are also important factors for Chinese enterprises to gain a firm foothold in overseas markets. Simon emphasized that component manufacturers need to provide multi-scenario reference designs, modular solutions and complete technical support so that customers can introduce products faster and at a lower cost. By lowering the barrier to entry and simplifying the design process, Chinese companies can further enhance customer trust and loyalty to their products.

5. Digital Marketing and Brand Management in the Internet Age

In the Internet era, brand building no longer relies on traditional advertising and trade shows, and digital marketing has become an important means of brand communication. Simon pointed out that Chinese enterprises can use efficient Internet tools to manage the cognitive path of customers and achieve rapid promotion and deep penetration of brands. Compared with traditional European and American enterprises, China's Internet marketing has the advantages of high efficiency and rapid response, which is also one of the core competitiveness of Chinese enterprises in global promotion.

Finally, Simon concluded that in the process of global market expansion, Chinese enterprises should not only pay attention to product quality and price advantages, but also pay attention to brand building and long-term management of customer relationships. With cost-effective, service, and responsive digital marketing, Chinese companies are expected to gradually occupy the high ground of the global supply chain in the next 5 to 10 years.


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