ABSTRACT
As China's international business grows, export performance indicators (such as export volume and profitability) of Chinese firms are attracting the attention of both academic researchers and business practitioners. Particularly after China joined the World Trade Organization (WTO), foreign trade has become increasingly important for China's economy. Meanwhile, competition and pressure facing exporting and importing Chinese firms has also increased. Firms involved with exports are more significantly affected. Therefore, it's imperative to investigate the future of Chinese firms’ export development. Chinese firms’ export products differ greatly from those of developed countries because a substantial part of Chinese firms export mainly through the OEM (original equipment manufacturing) strategy. This export approach has played and is still playing a dominant role in China. An increasing number of Chinese entrepreneurs and economic management experts realize there are numerous drawbacks to the OEM strategy. Hence, they suggest Chinese firms vigorously promote the OBM (original brand manufacturing) strategy. Therefore, there are two major research topics regarding Chinese exporters, which constitute two central issues in this chapter: (1) How do different export strategies of private and non-private brands affect export performance? (2) What are the influential factors for international marketing strategy choice? Branding strategy in firms’ internationalization process has attracted wide attention from both practice and academic perspectives. First, on the practical front, the importance of foreign trade to China's economy is self-apparent. Chinese firms’ export business concerns the overall improvement and development of the Chinese economy and is of critical importance in balancing and stabilizing the national economy and improving the overall capabilities and international competitiveness of Chinese firms. The export business of Chinese firms has made huge progress both in scope and in depth over the decades since the implementation of the reform and open policy. It can't be denied that the OEM strategy has played an important role during this process. Even now, the OEM strategy remains Chinese exporters’ major approach. Nevertheless, as China's international business grows, an increasing number of entrepreneurs and scholars start to attach importance to exporters’ long-term development. Moreover, many public opinions and studies suggest that Chinese exporters should blaze a new trail to cultivate their own brands.
