Markets Are Fragmented
Developing markets are highly fragmented, with few national brands that have a commanding presence. For example, beer companies initially saw China as a huge monolithic market waiting to be tapped with their global megabrands. After the first push failed, however, it became clear that this market would be won one local market at a time. Local beers were thriving, and large companies began to acquire them. In the words of Wai Kee Tan, vice president for corporate affairs in Asia for Belgian-based Interbrew SA, "China is a nation, but not a national market."6 MTV and HSBC have succeeded by making their global brands local, market by market around the world. Branding strategies and portfolios need to be tailored to the reality of fragmented, market-stall economies.