China’s markets may be raw, but there is already a widespread awareness of the importance of branding. “Chinese companies know about branding,” says Alan Yip, chairman of the Hong Kong Designers Association and owner of product design company Yip Design Ltd.

“It’s a big money game,” he continues. “Already about 90 per cent of advertisements in Hong Kong seem to be for goods from China.” In the mainland itself, domestic brands are ubiquitous – especially the ones which dominate their sectors, such as Changhong and Konka televisions, Haier refrigerators and washing machines, and Kelon air conditioners.

All the same, various techniques have emerged which have been proven to help foreign companies looking to establish a foothold in China. Among those recommended by companies already in the market are:

* First establish the brand in Hong Kong. Establishing a brand in Hong Kong is one of the best ways of introducing it to the mainland market, says Paul Yin, vice-president of the Chinese Manufacturers’ Association of Hong Kong. “Once you are famous in Hong Kong, then you will be at an advantage when entering the mainland market,” he says, attributing this to the huge number of mainland business people and other visitors who come to Hong Kong and gain exposure to international goods and products.

Being established in Hong Kong also has other benefits, Yin adds. Advertising, for example, often seeps into the mainland – especially television advertising, as Hong Kong broadcasts can be picked up across much of Guangdong province, directly adjacent to Hong Kong.

* Protect your brand. A first step for all companies should be to register their goods and brands with China’s patent and trademark authorities in Beijing. This will not stop companies pirating them, but it will mean you a have foot to stand on if you try to sue in a Chinese court. Says Alan Yip: “Registration is not difficult. There are a lot of agents in every province who can handle this.”

* Stay ahead of the local competition. Domestic brands often preserve market share by price cutting rather than using brand-building techniques. “Following local companies into this battle is usually a mistake,” says Chris Torrens, Shanghai Operations manager for Access Asia Ltd, a UK-based business and market research consultancy. “It’s far better to emphasise the strong points of your brand and why it remains value for money than going head-to-head with a company which may be able to bleed money for years because of China’s lax banking system.”

* Draw on Hong Kong's east-meets-west experience. When it comes to developing branding strategies which can promote international goods in a Chinese context, “cultural issues can be a problem,” according to Alan Yip. Exploring these in Hong Kong first can save wasting time and money in the mainland – where it can be far harder to find people with the knowledge of brand issues necessary to give good advice.

* Turn piracy to advantage. Even though the Chinese government has passed legislation outlawing counterfeiting and piracy, both practices are rampant in the mainland for everything from computer software to designer handbags. Perhaps the one positive side of this is it can introduce consumers to a brand name at no cost to its owner. Paul Yin suggests that while stopping piracy might be impossible, companies should bear in mind that combating it can help bring a brand extra coverage, for example through publicity at legal proceedings.

* Build a strategic alliance. Fashion retailer Esprit has firmly established its brand in the mainland – but not by itself. It established a joint venture with the mainland-controlled but Hong Kong-based China Resources group. Management of the venture was handed to an independent management team, with Esprit’s main input – apart from its goods - being promotional and brand-building material. Other examples of companies forming partnerships to promote their products range from the huge – AOL of the US with China’s biggest computer maker, Legend – to simple agreements to license brands and trademarks in the mainland.