What do “Canto Motto”, “OChirly” or “Masfor.SU”, and BRJ (short for “The Best Raiment of Jauntiness”) all have in common? I am increasingly seeing these and similarly other odd sounding names on storefronts in second- and third-tier cities in China (I am partial to the “Time Lord” – as an avid Dr Who fan, Tom Baker generation – which sells clocks). Chinese brands masquerade, copy and elaborate on Western brands like Zara and Donna Karan to appeal to Chinese consumers who have broken through the ground floor of the new middle class from China’s socioeconomic basement. China’s interior will present Western brands serious competition in terms of name brand recognition and cachet as Chinese brands tailored to Chinese tastes entrench themselves in consumer orientations. Western brands in clothing and white goods and automobiles will also have difficulty appealing to cost conscious consumers in China’s interior as Chinese do indeed have more disposable income, but not enough to splurge on an LV bag or a Gucci pull-over – especially if the buyers’ friends and family are simply unfamiliar with or unappreciative of styles that reflect little of their tastes. And yet, it’s the x-tier cities in the interior – like Jingzhou , Shouguang , Jinjiang and Shuangliu- that are racking up adolescent double-digit GDP growth rates while the eastern seaboard settles for middle-aged single-digit growth. So, though Western brands do have a future in China’s roughed interior; the battle, though, will be uphill from here.

More reading: China’s hinterland picks up the baton, China turns its gaze inward for growth

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Moving On Up

Drink a Bag of Tea