Academic journal article Manager

Brand Expert Tells Managers "Look to India"

Academic journal article Manager

Brand Expert Tells Managers "Look to India"

Article excerpt

"The managements of the world's biggest and most successful organisations are knocking on the wrong door if they believe China is their long-term golden goose."

That's the view of Allan Biggar, former Global CEO of Burson-Marsteller Corporate and Financial, the worlds biggest PR agency, and now head of All About Brands pic (AAB pic), one of Europe^ leading brand and business development consultancies.

Says Mr Biggar, "China will have absolutely no qualms about quickly buying in everything it needs to build an infrastructure, society, design and manufacturing knowledge and capability base focussed on a handful of its key business sectors and cities. Its plan is to enable it to sell even more to the West - and as soon as it has everything it needs, the door will slam and the current river of money will dry up. "

"China will be a short-term source of cash; India is a long-term investment. Every brand and business with international growth plans should be looking at India, rather than China, for one simple differentiating reason: China looks inwards, but India looks outwards. "

Mr Biggar believes that the view of China as an enormous economic powerhouse is a myth. He says that China simply has a very big shopping trolley at the moment, and it is maxing its credit short-term. There is no tradition or culture of foreign trade, or looking outside its own borders. It is buying at the moment, and it will buy to put itself in a strong position to sell.

He continues, "My contacts in the big banks are beginning to say that beyond Beijing there is nothing, and there is little ambition in the Chinese government to develop infrastructure outside Beijing and a handful of other major cities. …

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