I just returned from an 18-day trip to China. And one of the things that struck me most was the Chinese love affair with everything Western.
Whether it’s music, electronics, footwear, perfume or even coffee, a large and growing number of companies that produce and sell these popular brands are American.
In today’s video, I’ll share more with you about the country’s increasing U.S. brand obsession, including the names I’m watching right now.
Hi, this is Tony Sagami for Uncommon Wisdom Daily.
I just returned from an 18-day trip to China, and one of the things that struck me most was the Chinese love affair with everything Western.
For example, many young people in China can’t speak a lick of English. But they still love to listen to American pop music. Lady Gaga, Katy Perry and Beyonce are just as popular there as they are in the States.
And you wouldn’t believe the lines at a Beijing movie theater to watch the new “Spiderman” movie. They were as long as any lines I’ve ever seen — anywhere!
A.C. Nielsen just quantified this trend in the new report it created with a monthly trade magazine called Campaign Asia-Pacific. The report named the top 1,000 brands in 14 major product and service groups in 12 key regional markets in Asia.
And immediately, I noticed that none of the 10 most-recognized brand names in China are Chinese companies. In order, they’re Apple, Nestle, Chanel, Sony, Samsung, Uni-President, Panasonic, Nike, Canon and Starbucks.
Other Western brands that made the list include Gucci, Armani, Louis Vuitton, Tiffany, KFC, Ralph Lauren, Abercrombie & Fitch and American Eagle Outfitters, just to name a few.
All of these companies are worth considering for your investment portfolio, because they’re clearly taking advantage of the exponential growth in wealth and disposable income among Chinese citizens.
Meanwhile, you may also want to take a look at the few Chinese companies that were high on the list of most-recognized brands.
Coming in at No. 11 was the leading traditional Chinese medicine pharmacy, Beijing Ton Ren Tang. Instant-noodle maker Master Kong Holdings was ranked 14th, and the nation’s leading home appliance maker, Haier Group, was No. 15.
You could invest in these companies individually, or buy shares in an Exchange-Traded Fund that holds all of China’s most popular brands, such as the Global X China Consumer ETF (CHIQ).
The Chinese consumer market is already huge, and growing larger by the day. So investing in the companies that sell to those consumers is a smart strategy.
You can pursue that strategy with American companies doing big business in China, with Chinese consumer brands, or a combination of both.
I’m Tony Sagami for Uncommon Wisdom Daily. Thanks for watching.