The conquest of Chinese brands over the global market has started. These emerging brands are growing fast and are destined to be part of our daily life soon – although most of them are unknown to the majority of people. As proved by a recent globeone survey, this is particularly true in Germany, where only 17% of respondents (less than 1 out of 5) were able to recall at least one Chinese brand

One of the most recent examples is Alibaba. Founded only 15 years ago, the tech company is now a synonymous for “e-commerce” in China and has recently become the largest IPO in US history. Although the Alibaba-case seems extraordinary, there are many other Chinese brands emerging quickly. In 2014, 95 Chinese companies were listed in the Fortune Global 500– that equals to almost 20% of the list!

Observing the Chinese brands listed in sources like Fortune Global (FG) 500 or Millward Brown, some common patterns emerge. First, these brands are all very young – 71% of them are younger than 35 years; second, they are all growing really fast – Millward Brown estimated a growth rate of 13% from 2013 to 2014; third, they are becoming huge in terms of value and size – for example, the revenues of the first-listed FG 500 Chinese company, Sinopec, are 1.75 times larger than those of Volkswagen (first German company listed in FG 500).

Every success story has something to teach. Looking at these Chinese brands and their evolution, there are three key lessons that we could learn. Lesson #1: learn about the way Chinese brands go global, starting from easier markets. Lesson #2: learn about these brands’ tendency of targeting customers that are well-disposed towards them. Lesson #3: learn how Chinese brands are mastering the art of responding quickly to customers’ needs. In this article, we will explore lesson #1.

Lesson #1: Gain experience in easy markets – and then conquer the world!

Numerous Chinese brands have already managed the challenge of going international and becoming global brands, and they have done it following a similar pattern. Many of these companies have expanded first in other emerging markets and have then moved to more developed ones. This strategy has allowed them to become successful in easier markets – with more similar consumers and fewer restrictions – and, in a second moment, to leverage the acquired experience to expand to developed markets.

A successful example of a company adopting this strategy is Haier. Today, it is a leading Chinese consumer brand, the world’s largest home appliance company and the 8^th most innovative company in the world. How did it reach all of these? As other Chinese companies, Haier has started its expansion in proximate and easier markets. More precisely, it started in Indonesia, where it opened a production facility in 1996. Philippines and Malaysia came right next. With the acquired strength, Haier has then entered the U.S. and, in 2013, its retail sales have topped the global market for the fifth consecutive year.

Huawei, a major electronics brand, also followed a similar path. Before reaching developed markets, it has tapped into developing ones, such as South Africa or Brazil, becoming a leading electronics brand. Although common people might have never heard about it, Huawei is now present in over 170 countries, has 65% of its revenues coming from overseas and had a sales volume of over $39 billion in 2013.

Still skeptical about Chinese brands? In the next weeks we will explore the remaining two lessons together with other successful examples.

Sources: zdnet.com; cnet.com; Fortune; Millward Brown; Haier; Kumar & Steenkamp; Huawei; Hisense / Icons from The Noun Project (Doxdoxchan Ngamsiriudom, Kelly Hamilton, Chris McDonnell, Joni Trythall, Ruben Meines)