Dow Corning Success in China

In 2008, Dow Corning was one of the largest providers of silicon products in the world, and was the market leader in China. With its dual branding strategy, it managed to escape commoditization and provide multiple-channel access for its diverse customer groups. Due to consistent internal and external brand management, its low-end brand, Xiameter, was established, which was able to compete with low-cost providers and thus avoid price wars. Growth in the silicon market slowed down, however, and Dow Corning was now trying to decide whether to extend its market segmentation to other areas, particularly in China. The question was whether this kind of move would put the dual branding strategy at risk and result in diluting brand equity.