From Country of Origin Effect to Brand Origin: Challenges in International Direct Marketing Channels

Direct investments are an entry mode that increases business risk but allows a high level of control of the international marketing channel. Control means to be able to exploit and defend one’s own competitive advantages and to operate personally in the production and commercial activities. This chapter is aimed at investigating the ways in which greenfield direct investments can facilitate manufacturers’ value creation process for the market through the COO and value appropriation process. In the COO perspective, a representative office can oversee the foreign market by controlling implementation of the company’s branding strategy, suggesting possible adaptations, and maintaining close relationships with distribution partners. This chapter analyses what, from companies’ perspective, the role of the concept of manufactured-in has in the associations drawn between the country and the specific brand. The relationship between the country of manufacturing and the country of brand is also explored, giving voice to some companies that have entered directly through greenfield investment types in China and the USA operating in the food, furniture, and fashion sectors. Knowing how to adapt product attributes by rereading the made-in and its relationship with the brand to match local market needs is one of the main challenges to compete effectively in foreign markets.