The conferences on the Spanish Ambassador Brands in China, held in Beijing and Shanghai, on the 22nd and 24th January, were a resounding success. Several media companies and Chinese business leaders attended the conferences to gain first-hand knowledge of the experiences of the main Spanish brands in China. The conferences were held in the Instituto Cervantes in Beijing and in the Spanish Embassy Office for Economic Commercial Affairs in Shanghai. Both events were held with the support of the Spanish Institute for Foreign Trade and were attended by María Teresa Gómez Condado, Spanish Under Secretary for Industry, Tourism and Trade and Vice-Chairwoman of the Forum. José Luis Bonet, Chairman of Freixenet and of the Leading Brands of Spain Forum (FMRE) was in charge of presenting the Leading Brands of Spain's venture into China.
China is a top-priority market for Spanish brands, but brand awareness and penetration is still limited in comparison to brands from other European countries. For this reason the Leading Brands of Spain Forum has decided to create a China Plan to improve and strengthen the image of Spanish brands in China. The plan aims to position the image of Spain among Chinese consumers, therefore assisting the entry of Spanish products and services into the Asian giant. The conferences, held in Beijing and Shanghai at the end of January, were the first promotional activity of Spanish brands in China. They were a starting point of a more ambitious plan that will be carried out during the next few years and will culminate at the Shanghai Universal Expo 2010. Because, as Mr Bonet declared “Spanish brands must not and cannot afford to miss the opportunity to have a growing presence in the Chinese market”.
Mr Bonet explained the Leading Brands of Spain project and its objectives for the Chinese market to the media and Chinese business leaders. He placed special emphasis on how the leading Spanish companies and the government have joined forces, a point that was also underlined by Ms Gómez Condado. In the Beijing conference, Carlos Blasco, Spanish Ambassador to China, and Fernando Salazar, Chief Advisor to the Spanish Embassy Office for Economic and Commercial Affairs, gave the official welcome to attendees. In Shanghai this was carried out by Jorge Dajani, Chief Advisor to the Office for Economic and Commercial Affairs. Pablo Bravo, Special Mission Ambassador for the Year of Spain in China, then presented a summary of all the activities and events that have been carried out in the last year and have considerably increased awareness and knowledge of Spain in China.
However, the Spanish brands played the leading role in the conferences, explaining their successful experiences in the Chinese market. Previously, Gonzalo Brujó, General Manager of Iberbrand for Continental Europe presented the results of a study on the image of Spanish brands in China, highlighting their association with European passions, lifestyles and quality. In turn, Miguel Otero, General Manager of the Leading Brands of Spain Forum, explained the gap that exists between the perception of Spain in China and the reality of the country. He highlighted how important it is for companies to be supported by the Spanish Ambassador Brand image and by the Spain Brand’s Honorary Ambassadors as the driving forces of the “Made in Spain” concept. Mr Otero presented the Leading Brands of Spain book, published especially for the occasion in three languages (Spanish, English and Mandarin), which was presented to all attendees at the end of the event. In both Beijing and Shanghai, this was followed by a spectacular multimedia presentation on the Spanish brands in China, a perfect way to present the strength of the Spanish brands and their international leadership in a number of sectors.
The brands, the key players
In Beijing, six leading Spanish brands participated in a round table that was brilliantly chaired by Albert Collado, Chairman of the International Committee at Garrigues. The strong Spanish finance and insurance sector was represented in Beijing by the brands BBVA and Mapfre. Ramón Gascón, Managing Director of BBVA China, explained the strategy of the brand in the largest market in Asia, mentioning the important strategic agreement reached with Citic Bank, one of the leading banks in China. Javier Warletta, on the other hand, presented the experience of the Mapfre brand in China. Técnicas Reunidas and Indra represented the Spanish technology and infrastructure brands superbly. Pablo Rovetta, Manager of Técnicas Reunidas in China, explained the brand’s venture into the Chinese market, a market which it first entered 25 years ago where it has since gained Chinese clients of the magnitude of Sinopec or Petrochina, and multinationals such as Basf or Shell. “Operating in the Chinese market is not only important in its own right; it also strengthens our brand internationally, where success in China is very highly valued". José Luis Gascó presented the Indra brand, one of the world's leading brands in the IT sector with operations in China both in the control of infrastructure, metros and air traffic as well as in simulation projects. Santiago Alfonso, Marketing Manager at Cosentino, surprised the attendees with a remarkable presentation of the company's much-admired Silestone – a product that is gaining popularity in China. The culmination of the Beijing conference was the presentation given by Lluis Ballell, General Manager of Cola Cao in China – without doubt one of the most renowned Spanish brands in China. Gao Le Gao (Tall Happy Tall) is the name given to Cola Cao in China. The company first entered China in 1989 and today forms a part of the daily life of millions of Chinese.
On 24th January, it was the turn of Shanghai – the commercial capital of China – to host the conference where another five Spanish brands participated in a round table chaired by Pedro Nueno, Chief Executive Officer of the China Europe International Business School and one of the most well-informed Spaniards on the Chinese market. Miguel Torres is the most popular Spanish brand of wine in the Chinese market, where consumers are showing a growing interest for quality Spanish wines. Alberto Fernández, General Manager of Torres China, presented the experience of the Catalan brand in the Chinese market, which the company broke into in 1997. Today Torres wines are sold in the leading stores across China and it is the only Spanish brand in Business and First Class in China Eastern Airways. It is also the only Spanish wine sold by the glass in the Shangri-La chain. Another Spanish brand with an important presence in China is the Valencian brand Lladró that was represented in Shanghai by Olivier Arzel, the Senior Manager of the brand in Asia. Mr Arzel explained the main characteristics of the Lladró brand and the exclusivity of its products, which have experienced considerable success in China. Garrigues, with more than ten years experience of working in China, was in charge of representing the Spanish legal services sector. Begoña Suso, from the Shanghai office of Garrigues, explained the Spanish company's strategy in the Chinese market. Two very well-known Spanish brands in China – Zara (Inditex) and FC Barcelona – were in charge of closing the Shanghai conference. Victor Herrero, Managing Director for Zara China, explained the Galician textile group's expansion strategy in China, making special reference to the innovative business model and the strength of the brand as fundamental assets for its success in the Chinese market. Casper Stylsvig, Regional Marketing Manager for FCB Marketing explained the importance of the Chinese market for the blue-maroon brand, where Spanish football has an ever-increasing number of supporters. FC Barcelona is, without doubt, a brand that is hugely well-known and valued in China.
The dramatic growth of China in recent years and its enormous future potential makes it a strategic market and a real top-priority for Spanish brands. The time is now. China is at the start of its so-called second historical boom in the last thirty years. An explosion in domestic consumption is transforming it into the largest market in the world. China has more than 1.3 billion inhabitants; however, as the majority is poor, the real consumer market is around 100 million people. It is forecast that in the next fifteen to twenty years this consumer population will increase to 600 million. The Spanish brands must be prepared; they must redouble their efforts and make a firm commitment to the Chinese market. Support from the Spanish government is fundamental, and the Leading Brands of Spain Forum will become the perfect platform to lead these efforts.
