Branding helps small players to pursue big global dreams

Wang said he also produced many advertising T-shirts and gave out lots of free samples.

He followed similar strategies when his company entered the African market, including Kenya, Tanzania and Nigeria, in 2009 and 2010.

"We were there when people in those countries could barely afford LED bulbs. We also started by giving out free samples," he said.

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Wang said compared with developed markets, such as the European Union and United States, it is easier for SMEs to get established in emerging markets.

Tapping into emerging markets is also a common option for many of the country's vehicle producers.

Xie Feiming, deputy general manager of Higer Bus Co Ltd in Suzhou, Jiangsu province, said the African and Middle East markets are providing a major part of the company's global growth.

It has increased exports by 75 percent thanks to customers in emerging markets, especially Algeria, Russia and Qatar. The company has sold more than 3,000 buses in each of those three countries.

"Our key advantage lies in good performance and low costs," he said.

Another way for SMEs to break out of their OEM role is through foreign acquisitions, especially to enter the developed markets such as the EU and US.

Wang Xianggui, president of Soundking Group Co in Ningbo, Zhejiang province, said he regarded the acquisition of brands in the United Kingdom as a crucial step for gaining entry to the international market. The manufacturer of sound equipment has so far acquired the UK-based brands Cadac, Studiomaster and Carlsbro.

"The branding of products is the key," he said. "Without recognized brands, customers will not acknowledge the products' quality. Without the acquisition of international brands, we could never have established ourselves in the international market."

Song Zhenhuan, chairman and chief executive officer of Goodbaby International Holdings Ltd, one of the world's leading baby stroller producers, said: "We believe that to enter an established market, such as the United States, and build your own team is a very slow process."

Goodbaby has acquired two overseas stroller brands this year, including Germany's Cybex GmbH and Evenflo Company Inc, a US manufacturer of infant and toddler car seats, gates and bathing products.

"We purchased those brands because they have very good consumer relations. They have built up consumer loyalty over the years, which is exactly what we need to localize our business," he said.

Song's company also functioned as an OEM for many years "but that mode is not sustainable", he said.

The acquisitions this year have enabled his company to increase its profitability and learn about the market and needs of consumers, he said.

"The company's innovation must be market-oriented. A majority of OEM enterprises are selling their products cheaply due to the lack of branding. The acquisitions enable us to connect directly with consumers and complete our global network," he said.