Manufacturers gain credibility in EU market (4)

Long way to go

Despite the progress that China has made in the past 20 years to lift its reputation as a global manufacturer, many executives and industrial insiders still believe China has a long way to go before it could be at the forefront of high-technology innovation.

"Made-in-China goods will eventually become the gold standard worldwide. It's a matter of time," said Chen Yongwu, general manager of Zoje Europe GmbH.

But "for the time being, there is time for Chinese manufacturers to catch up with their peers in Europe, and Germany in particular, in high-end and value-added goods", he said.

For example, Zhejiang-based Zoje Sewing Machine Co Ltd, the world's leading industrial sewing-machine maker, made two acquisitions in Germany in a bid to improve its technology.

Echoing Chen Yongyu, Tan Zuozhou, president of LiuGong Poland, said: "There is room for us to improve in terms of technology compared with the top industrial brands in Europe. We also have a lot to do in branding."

Guangxi LiuGong Machinery, a Nanning-based Chinese building equipment maker, set up its European headquarters in Poland by acquiring a local counterpart in the eastern European country in early 2012.

For Sander Gesink, marketing manager of LiuGong Machinery Europe BV, "it's not about products only, but more about brand".

Gesink, who has been in the European industry for more than 10 years, added: "LiuGong is a new brand in the EU, and there are challenges to build the brand here. The biggest is the perception of the Chinese brand ... People don't think the Chinese brand is good and worth buying."

For many Chinese brands like LiuGong, another big obstacle is the stigma attached to the "made-in-China" label, which is traditionally associated with sweatshop labor and cheap products.

According to Li Minyan, managing director and chairman of China Certification & Inspection Group Europe BV: "Many Chinese manufacturers are not inferior to their Western rivals in technology and design, but unfortunately, a majority of them lack global recognition.

"They need to accelerate their efforts in branding and marketing to raise their awareness. It is time-consuming," she said.