CD(CompactDisc),NBA(National Basketball Association),CCTV(China Central Television), the increasing use of acronyms in China has inspired a trend of brand naming. The main advantage of an acronym is to shorten words and phrases for easier use. This is especially important for a wordy brand name. For example, IBM is surely easier to say and remember than International Business Machine; for native English speakers the three letters can be naturally associated to the brand name. How, then, to make these letters more meaningful for Chinese people? Should the acronyms themselves have a Chinese version as well? In our opinion, the brands’ phonetics, positioning and philosophy actually make the decision. 

A comparison between IBM and HP illustrates this idea. Both enterprises originate from the U.S, and exist in the electronics industry, which commonly use acronymic abbreviations for products and brands names. However, their branding strategy in China are totally different: IBM keeps its three-lettered name in China while HP has adopted a Chinese name—惠(huì)普(pǔ). 

From a phonetic aspect, though “I”, “B” and “M” are three English letters, we can find similar Chinese characters in sounds such as I—爱(ài,love); B—比(bǐ,compete); M—目(mù，eye). Thus, even non-English speaking Chinese can pronounce the name easily and accurately. However, the situation is totally different for HP. “H” is pronounced quite differently in mandarin pinyin, and “P” actually evocates an awkward association to 屁(pì, ass) which can lead to a brand naming disaster. 

IBM’s products are positioned as business oriented. This means that most of its consumers have a good background of foreign languages, which will make them easy to understand its brand concept through the capital letters. HP, on the other hand, is more aligned with the personal computer markets. This positioning requires a common understanding from the general public. Thus, HP needed to find a more indigenous name in China. 

IBM believes in personal respect, good service, and top-ranking. To reflect this premium oriented philosophy, the blue giant’s abbreviated brand appears globally in the identical form. In contrast, HP follows a strategy of high tech, low cost and best customer experience. Since it is more concerned with creating an emotional connection to its consumers, HP needed a name to resonate with the Chinese public. 

Given all the reasons above, HP developed the Chinese name—惠(huì)普(pǔ). 惠(huì) means beneficial and普(pǔ) means public. The whole name can be understood as “benefiting the public” which perfectly expresses its brand philosophy. Additionally, the abbreviation of this Chinese name in pinyin form is also HP. 
Not all acronymic brand names require a Chinese version; the brand values and the phonetic considerations name itself will decide the necessity.