Brand Loyalty and Global Value Chain: An In-depth Study Based on the Integration of Chinese Enterprises and WTO Rules

Abstract

Both brand loyalty and Global Value Chain integration could be important factors in strategies for creating competitive positions in highly saturated international markets. This paper aims to assess the impact of brand loyalty on the Global Value Chain integration of Chinese firms under the WTO system. The main research question is to determine what role the Global Value Chain plays in compliance with international trade standards and brand equity in China. This paper uses the Systematic Literature Review (SLR) method to map the literature on brand loyalty, GVC integration, and WTO compliance on business practices. This paper notes that enhanced GVC governance enhances customer loyalty by ensuring quality products, and buying firms' satisfaction due to expanded markets. This paper also proposes that observing rules enhances brand reputation by promoting the protection of intellectual property and compliance with international regulations. Finally, the research offers a strategic approach for Chinese enterprises to enhance brand loyalty via culture adaptation, innovation, and services. Practical implications propose that firms need to coordinate global strategies with the local market to be competitive and develop customer loyalty.