The choice of brand names for home furniture companies entering the Chinese market and its relation to marketing policy

Abstract

This thesis analyzes the choices of brand names for foreign enterprises that decide to enter the Chinese home furniture market. The main goal of this study is to identify the strategies that companies adopt in their choice of Chinese names and what they aim to convey to their consumers, providing also some case studies of furniture firms and their expansion in China. The study is divided into three main parts. The first chapter analyses the functions and characteristics of brand names. Starting from the main techniques for word formation, it is possible to identify some of the most common methods for foreign brand name creation in Chinese. Together with linguistic components, it is important to focus also on the meaning of characters and elements that play an important role in Chinese culture. In the second chapter, we discuss the value and perception of Chinese brand names and their impact on consumers. Companies have to take into consideration many aspects from brand personality and cultural influence to marketing strategies and brand equity. Moreover, the choice of adopting a Chinese brand name constitutes an extremely precious resource for companies, but it is always important to remind that the success of a business is linked to many different factors. In the last chapter, we connect the different elements of the first two parts to a particular business sector and describe some examples of Chinese brand names adopted by foreign companies in the home furniture market. First of all, we discuss the establishment of the home furniture sector in China and its evolution in recent years, focusing on the purchasing decisions of Chinese consumers, the distributive channels and the main actors in the competitive landscape. Secondly, we offer some examples of Chinese brands adopted by six foreign company, IKEA, Leroy Merlin, B&Q and three cases of Italian companies: Scavolini, Kartell, and FAB. In conclusion, we analyze their history, investments, strategies in the market and their impact on the perception of the furniture sector for Chinese consumers.