Risks of a poor brand translation into Mandarin Chinese
Lessons to Learn: Even major players in industries like hospitality and coffee faced significant challenges when entering the Chinese market. While these issues weren't catastrophic, they did lead to avoidable losses. By observing these cases, we understand the importance of learning from others' experiences to avoid similar pitfalls. Many companies, both large and small, underestimate the need to validate a brand name with the local market before launching in China. This step is essential for a smoother entry and a stronger connection with Chinese consumers.
Cultural misunderstandings
In Chinese, the literal meaning of characters is not always enough. Homophones and cultural connotations can lead to unintended interpretations.
​
This has happened to several famous international companies that gave their brand a wrong or controversial meaning, which affected their brand reputation and, consequently, impacted their business profits.
Homophones and superstitions
Mandarin is full of homophones, and a poorly chosen word can be associated with a negative meaning.
​
For example, the number 250 (二百五, "èr bÇŽi wÇ”") is often used to describe someone foolish or stupid.
Moreover, Chinese culture has deeply rooted superstitions, where certain words or numbers are believed to bring bad luck, which can further complicate branding efforts.
Risk and Vulnerability
Every year, thousands of companies discover that their brand has already been registered in China by others, forcing them to spend large sums on negotiations or litigation to reclaim their rights. At LexOrient, we help protect your brand in China by creating and registering a culturally relevant Chinese name, avoiding legal conflicts and financial losses, and ensuring that your marketing investments are more profitable by connecting with local consumers. Read the warnings from: ICEX and GOV.UK
​
Key Figures:
-
Up to $1 million for purchasing brands that should never have been registered.
-
Legal costs ranging from $50,000 to $500,000 for litigation and disputes to reclaim the brand.
-
Thousands of legal disputes annually, affecting many foreign companies.
-
Years of delay in entering the Chinese market, like in the case of Manolo Blahnik, who couldn’t sell under his name for 20 years.
​
Affected Brands: From startups to major brands like Tesla, New Balance, and Manolo Blahnik.
​
Opportunities offered by Chinese characters
It is important to highlight the unique opportunity that Chinese characters offer for expressing your brand's values through effective branding. These characters enable a deeper connection with Chinese consumers, allowing them to resonate with the brand and its core values.