Why Do Far Eastern Companies Use a Single Brand Name?

While Western companies prefer a different brand name for each area in which they operate, Far Eastern companies in many fields with one name is operating.

About the brand management strategies of companies from two opposite corners of the world different approaches What could be the reason for its adoption? Especially if these companies are global giants?

This situation is actually based mainly on cultural differences.

The concept we call culture is quite broad and in all fields has the power to exert its effect. This being the case, it is possible to see that cultural differences are reflected in the way companies do business.

The subject of this content branding strategies It clearly reveals the impact of culture on the way of doing business.

For example, let’s look at the South Korean brand Samsung. In many sectors that we cannot count, from consumer electronics to white goods, from insurance to asset management. with the same name is operating.

But the situation is a little different in Western brands. A Turkish company From Zorlu Holding Let’s give an example. This giant company uses Vestel and Regal brands in white goods and consumer electronics. In textiles, Taç, Linens and Pierre Cardin.

So why might Far Eastern companies prefer to operate under a single umbrella brand?

From electronics to automotive, from finance to construction, brands such as Samsung, Mitsubishi and Hyundai in a wide range We see that you offer products and services.

The main reason why these companies use a single umbrella brand is that consumers in the Far Eastern markets Great trust in familiar brands.

Consumers who are satisfied with a brand Prefer other products of the same brand shows the trend. This allows companies to build a strong reputation and large customer base in the market. For this reason, these companies follow such a strategy in order not to shake brand trust and recognition.

Companies that gain the trust of consumers to capital They also translate. Because Far East companies that use the positive image of a brand in different products and services become recognized and trusted in new markets. using the reputation of the brand They can enter more easily and at lower cost.

In fact, the underlying reason for this situation is the influence of Far Eastern culture.

In Far Eastern culture, long-term thinking and family-based business approach It is common.

For this reason, Far Eastern brands ensure that the brand maintains a general family image and reflects this image in various business lines. a single umbrella brand It moves with .

Moreover, in Far Eastern economies, companies often for investment and risk management purposes prefers to diversify its business.

The reason for this is that the company operates in different business lines. common strategies to develop and use resources more efficiently

What about Western companies? Why do they choose to use different names?

When we look at the functioning of companies in Western countries, including our country, quite the opposite situation We see. These companies often specialize in specific areas and provide services for each industry or product category. developing different brands prefers.

The main reason for this is that the understanding of family-based business in Western culture is not as prevalent as in Far Eastern culture. not common.

For this reason, in the West, companies specialize in a certain field and make a brand stand out in the eyes of the customer. gain authority cares. In this way, each brand is in its own market. gain competitive advantage purposes.

The fact that Western culture is more individualistic is one of the most important factors!

Customers in Western countries expect to see the same name in every sector as in Far Eastern countries. They do not describe it as an example of “trust”.

Consumers in the West are interested in brands operating in different sectors. Even though it is known that it belongs to the same company Thinking that these brands were created specifically for the sectors in which they operate, they tend to trust those brands.

For example, if the Coca-Cola brand produces both beverages and Coca-Cola branded textile products, The perception that the brand has previously created therefore “What does textile have to do with the Coke brand? “It’s definitely bad.” In order to prevent the emergence of a thought like this, it is used under a different name even if it is produced by the same parent company. We attach importance to this sector and our investment. The perception is tried to be created.

by Far East to a more individual culture Of course, another reason is that these brands want to protect their other brands against possible negativities by using different brands.

As a result, differences in umbrella brand usage between Far Eastern and Western companies are both market structure as well as cultural values stands out as a reflection.

Our other content that may interest you: