Poor branding of ‘SA Inc’ holds back Chinese trade growth

CLIVE EMDON
UNLESS MISCONCEPTIONS in China about the diversity and depth of the South African economy are laid to rest, export success will be limited as will investment from China, says Michael Jones, a special consultant writing in the China Analyst for Africa, a publication of the Beijing Axis. “It was evident during the recent Beijing Forum on China - Africa Cooperation (FOCAC) that despite notable South African companies such as SABMiller, Kumba Resources, Anglo American, MIH, and Sasol making great strides into the Chinese market, the perception of South Africa Inc as a whole does not enjoy the same success,” says Jones, a special consultant writing in the China Analyst for Africa, a publication of the Beijing Axis. He believes one of the greatest challenges facing increased economic cooperation between Africa and China is one of simple branding. “Stereotypes on South Africa misinform the Chinese population,” says Jones. “Most Chinese people know that South Africa is rich in diamonds, rich in gold, and that it is a very beautiful country. But of late, due to a barrage of local negative publicity, South Africa is also portrayed as a country in which Chinese people are often targeted for robbery and murder.” Jones says South African Tourism has been flying the flag in China, enticing the upwardly mobile Chinese classes to come and enjoy South Africa with its famed wildlife through promotional road shows under the campaign banner “Nanfei Total” (“Total South Africa”). But due to the complete vacuum of other sector branding activities, even these positive efforts could be damaging to the country’s economic prospects as a whole. South Africa’s corporate image in particular is further hampered by the low-key approach adopted by its most successful companies operating in China, he added. SABMiller’s unparalleled success in China has largely been influenced by the fact that they have bought local breweries, maintained the local brands and improved on technology and management standards at the plants. For this reason, the overwhelming majority of the locals drinking the beer do not even know that the company is foreign owned. MIH (Naspers) has also made impressive inroads into the Chinese media market, but due to the sensitive political nature of the industry, they correctly pursue a strategy of keeping a low profile. “China’s media messengers would be a good place to start with promoting South Africa Inc,” he said.