Is China Buying The American Dream?

Chinese consumers just can't get enough of American brands, according to CBS News. But as a resident of China, I disagree.

Certainly many brands, especially luxury brands, are relying on China to bolster sales numbers amidst dismal international earnings. But where is there actual evidence that Chinese consumers are specifically choosing American brands over others?

There are more Benzes on Beijing streets than Buicks, more Gucci sales than Coach, and hip kids are just as likely to be wearing Japanese designer BAPE hoodies as Nike kicks. China has a thirst for brands, period.

Where the brand comes from isn't as relevant as its reputation, and in this sense, the Chinese market is a very international one. There's no denying that certain American brands are doing a very brisk business here. Cosmetics giant Mary Kay is good example of the possibilities of branding hitting the bullseye.

But it is a mistake to think, based on a handful of successes, that the Chinese are hunkering after anything and everything American. Many US brands that succeed in China are international brands that have also enjoyed enormous success elsewhere.

Brands still have to work hard to establish themselves in China, a task that takes an enormous amount of flexibility, time, and perserverance. As China analyst, media consultant and Beijing resident David Wolf told CBS:

If you are ready to operate in an environment that is chaotic, that is brutal but that has real opportunity, that's when you should come over here. But don't come over here with candy corn dreams about some beautiful pot of gold that awaits you here.

Establishing a brand in China is likely to become even more difficult in the future, as Chinese companies get a handle on producing quality products for the domestic market. Not every company is an international conglomerate with cash and time to spend on cracking the magic code of Chinese sales. Nike may be the number one sports brand in China, but it still took them 20 years to get there.