If print and TV ads are any indication, it’s going to be China’s season.  The New York Times reports that McDonald’s, Nike, and Pepsi, are among the major brands that are already cheering on the People’s Republic.  Pepsi, for example, offered a limited edition “Go Red for China” promotion earlier this year.

Just why are these companies so eager to adopt the Olympic team of the world’s most populous communist nation? 

The Times notes that China is a “dream for consumer product companies.”  According to Jonathan Chajet, strategic director at Interbrand, “For most international brands…China is the growth market for the next 10 years.”

Curiously, rising nationalism in China may make imported goods a tough sell.  The Times article points out that “China’s growing economic clout and increasing nationalism among its youth — as well as the newfound strength of its homegrown brands — pose challenges for foreign companies trying to woo its growing middle class.”

More significantly, China’s consumers have a higher savings rate than their American counterparts, and tend to purchase mostly the major essentials of daily living.

Perhaps the real reason for promoting China is to better market China’s exports to a hungry world.  Chinese computer maker Lenovo is one of the Games’ “global sponsors,” and it can’t hurt for them to further promote their brand.

The bottom line is that more manufacturing investment in China leads to more imports coming back to the U.S.  And so multinationals that have located their factories in China are undoubtedly going to be rooting for their new favorite home team.

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This entry was posted on Wednesday, July 23rd, 2008 at 7:12 pm and is filed under Holding China Accountable. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.