As you meander through the vibrant streets of Shanghai, a dichotomy of brand names unfolds: some elegantly scribed in Chinese characters, while others exude an international flair with languages like English, Japanese, or French. The strategic choice between using Chinese characters or incorporating foreign linguistic elements prompts intriguing questions. Does a brand resonate more with Chinese consumers when its name is articulated in their native language? Can infusing a French identity, for instance, enhance a brand’s allure? Navigating the intricacies of the Chinese market, every brand forging its path in China deploys a unique differentiation strategy, and at the heart of these efforts lies the crucial role of cultural naming.

In order to gain further insights into recent naming practices in China and analyze the positioning strategies behind them, we can further break down the aforementioned two categories into three groups:

1. Brand names that use foreign words
Brands such as Paris Baguette and Croissants de France belong to this group. They are local brands that borrowed foreign verbal elements in their naming strategy. It is a fact that some products are deeply associated with certain cultures. Fashion means Italy while food often evokes France. Furthermore, German culture represents precision and seriousness and Japanese connotes high quality and technology. Being associated with certain cultures is a table stake in some markets. The association gives credibility to the brand and allows it to charge a premium.
Furthermore, brands can choose to borrow elements from other cultures because of their meanings rather than for the association with the culture itself. The brand named “Ubuntu” is an extremely interesting example. Ubuntu is a Linux-based operating system that borrows the name of a well-known African philosophical concept: “I am because we all are.” It is a Bantu name and refers to the realization that all individuals are connected and belong to a greater whole. As ubuntu is a free and open-source software to which all users can contribute, it is perfectly in line with the philosophical concept it chose as a name. In this case there is a fine fit between the product and its name; the name gives extra meaning to the product’s key feature and gives another dimension to the customer benefit.

2. Brands that create new words and meanings
In recent years, it seems that many brands have followed this creative trend, but few brands succeed in creating an original brand image in the minds of consumers. One of the first and very successful examples of this strategy is the ice cream brand Häagen-Dazs. The name Häagen-Dazs means absolutely nothing in any language. However, the effect it has is the immediate association to northern Europe and Scandinavian countries due to the composition of the words and the use of letter “ä”. This association made customers accept a price premium in the first place as well as giving credibility to the claim that the price premium was justified by good European quality. So successful was the branding that even today most people still think that Häagen-Dazs is a Danish brand even though it is 100% American.

Another intriguing example is a brand named Faguo (the Chinese pronunciation for “France” written in alphabetic/PinYin terms). The goal here is to tell something about the brand’s history. Faguo is a brand of shoes created by two young French entrepreneurs in 2008. Although the shoes themselves have little to do with China or Chinese culture, the name is used to emphasize the personal history of the founders who had the idea for their business venture while studying in China.
It can be hypothesized that cultural naming is sometimes used to generate immediate attention and make the brand more memorable. Out of curiosity, people are prone to ask questions in order to know more about this culture-related name, its literal meaning, and the reasons for which it was chosen. In the end, what they can recall is not only the brand name, but also the extra meaning carried. A well-crafted cultural name can constitute an excellent first touchpoint between the brand and its target audience.
3. Brands that use cross cultural naming strategies
Cross-cultural naming refers to the use of verbal elements that give an association of foreign culture or images to the audience. These elements may, to a varying degree, represent cultural symbols that carry a significance that goes beyond literal meaning and act as an evocative byword for a wider set of ideas and images.
In a Chinese context, cross-cultural naming refers to Chinese names that, although written in Chinese characters, are associated with other cultures. One of the well-known examples is the Chinese cosmetic brand 东洋之花 [dōng yáng zhī huā]. Although it is a local brand, the literal meaning of its name is “Japanese flower”. Many people thus tend to believe it is a Japanese brand. In this case, 东洋之花 used cross-cultural naming to differentiate itself in the marketplace and exploit Japanese products’ reputation for quality.

Cross-cultural naming strategies are commonplace in the F&B industry. Examples include Italian restaurant chains 巴贝拉[bā bèi lā], Japanese sushi restaurant chain元禄寿司[yuán lù shòu sī], and Japanese noodle bar chain 味千拉面[wèi qiān lā miàn]. Even though all of these brands are Chinese or Hong Kong owned, the characters used in their names give them credibility and authenticity in consumers’ eyes.
 

The shortcomings of cross cultural naming

Deep association with a certain culture might cause problems
The examples provided above illustrate how companies can successfully use cultural naming. However every coin has two sides. Markets and culture are constantly evolving entities, hence companies must remember that the meaning carried by a certain cultural name may change over time as public opinion of foreign cultures evolves. When the anti Japanese movement agitated China a few years ago, 味千拉面, who prior to the incident enjoyed a strong brand image associated with Japanese authenticity, had to publically announce that it was a Hong Kong based company in order not to have its restaurants bashed by angry protesters.

Some names carry different meanings from country to country: For instance, Mitsubishi used the name “pajero” for its famous line of SUV. While this Spanish sounding name is original and generates curiosity, it is a slang term for “wanker” in Spanish speaking countries. When resorting to cultural naming, brands must make sure that the chosen name is widely usable and that it will be understood in the same way by all markets.

Risk of not being fully understood: The extent to which individuals fully understand other cultures remains a problem. Not all customers have the knowledge and open mindedness to understand names borrowed from foreign cultures. Some may not grasp the full meaning of the name and just end up confused. Low engagement products in particular such as FMCGs can seldom afford complicated names that require significant efforts from the consumer to be fully understood.

Conclusion & general rules

Cultural naming presents both advantages and disadvantages. When targeting the Chinese market, cultural naming can help brands differentiate themselves and make a long lasting impression on the consumer. Yet the risk is that in time, the past advantages can possibly turn into its disadvantages, hampering the brand’s development. Hence, brands that entering China needs to be equipped with a sound naming strategy that aims to not only build a differentiation and originality, but also communicate the brand’s core message consistently and effectively over time. In essence, brands need to be culturally aware and sensitive if it is to succeed and stay relevant in this ever dynamic and multicultural consumer market today.