“Made-in-China” Brand Development by Joanna Zhuan Yu
INTRODUCTION
Nowadays, we can see merchandises of mark the “Made in China” in abroad everywhere.
This time, the first we will think of manufacturing industry is development rapidly in China, moreover it has went out of the country and enter the world, but how many people thought in the merchandises of mark “made in China” that how many China’s own brand!
According to the State Statistical Bureau’s economic census data No.2 notice that the main proclamation，manufacturing industry occupy 91.6% of the number of China’s industrial enterprises, 86.8% of main operating income, 73.1% of profit, manufacturing industry occupies our industry leading position. （source:http://tech.qq.com/a/20060320/000262.htm ）This data show China “madding great nation” of status go step further strengthens.
In the face of such a situation, we should be gladness or sorrow. Chinese manufacturing industry growth rate so fast, because interior labor forces are cheap, this is a beneficial resource for every enterprise. Foreign enterprises are taken fancy to this point, only their own brands into China production. But when we create brands for others, we do not use own resources to create their own brands. Have some people will our processing trade of manufacturing industry compare is “somebody else eat meat, we nibble bone; others eat rice, we swallow husk.” So have to have the doubt, why from the beginning is own meat let others eat, myself just nibble bone.
When Haier, Konka led a large number of Chinese the first class enterprise produce goods that make “made in China” entered the market in many countries and numerous households of developed country, with excellent quality and reasonable price gained the favor of overseas consumers, these shows that the Chinese have created a new image of cheap goods was broken even inferior products in the international. But after our products have “a bargain buy” reputation, the deficiencies have not yet been resolved brand value; own independent intellectual property rights in the international reputation of Chinese products are very rare.
Now the Chinese people need to create own brands genuinely, let the “made in China” on own brand.
The main objective of the paper is to create awareness of the importance of branding strategy of China-made products. The Chinese companies need to recognize the need to establish an autonomous brand awareness, create own brand, and more support local brands. While raise the industry, let the “made in China” on own brands more.
REVIEW OF LITERATURE
First of all we talk about brand awareness before, we talk about what’s brand.
When the sixteenth part political report of national economy people’s livelihood, （source: http://www.southcn.com/news/china/important/200211120723.htm）the first posed “brand”, be agitated, because in our ongoing practice of liberate thought using innovative action to establish a preliminary brand awareness. Can see many enterprises and urban construction, does not have the brand awareness, if not also to bring awareness to the division is famous awareness.
No wonder Ogilvy & Mather Global CEO Shelly Lazarus said that the Lenovo is famous brand is not brand name.
(source: http://www.techweb.com.cn/people/2005-02-06/1936.html)
Can you say what is Lenovo; another example most cities are greening and beautification, clean up, highlighted the “Old Four Modernizations” of the project, plus the promotion of the image, this will be brand building? Operation of modern city, as Wang Zhigang said “new Four Modernizations”: the cultural, planning, planning and detailed is the brand-building and urban management practices.
So what is brand? Explain brands before must be in the notes to the meaning of the concept, because there isn’t a uniform consensus, I chose several more representative reference:
1: The > Marketing associations believe that the concept of brand as a market, is intended to identify means of a vendor or a group of goods or services names, terminology, symbols, symbol or design, or their combination, and intended to distinguish one or a group of vendors and their competitors.
(Source: http://www.shougang.com.cn/shougangdaily/4263/2005-07-04_8302. html)
2: Brand founder — advertising master David Aogewei said: brand is a complex symbol, which is brand identity, name, packaging, price, history, reputation, advertising methods invisible combined. Brand but also because of its consumer users impression, and have defined they own experience.
3: Sovereign of modern sales management — Philip Milton stresses: brand is a name, term, marking, symbols or designs, or a combination of them, the purpose of which is to identify a particular person or a particular group sales of the product or service vendors, and the competitor with the distinction between goods and services.
4: Brand competitiveness founder — convinced Li Giangdou convinced: brand are products’ the inherent quality and external features of the integrated reflected. Through its marketing and advertising in the eyes of the consumer market and create products with the image of the character.
5: “enterprise management dictionary,” explained: brand is a name or symbol used to identify the seller of their products or services, and differences with your competitors.
Many definitions of the concept of brand, however, the brand essence is a concept, it is an effective competitive tool and the product of the market economy, its appearance with interests have relation, the interests of the middle, is the bridge between business and consumers, represent a certain material and spiritual interests. Some people think that brand is very noble, very trendy, but don’t knows brand personality and content all are endowed people. The purpose is to promote sales, value-added is brands a higher level with the best interests of the selling points, If BMW, the material benefits to consumers is “driving pleasure”, the psychological or spiritual value to the consumer is successful and flaunt.
Return discourse brand awareness,“ the British “Financial Times” has published a signed article said, “Chinese brand awareness is very strong. “This is a very good product, but in the article referred to a British company in China’s successful experience, the company’s statement, made me for our” very strong “and” brand awareness “it is optimistic: a considerable primary products, as long as emphasizing quality, and improve product packaging, leading to slight local brand in China, there is great market.” （source:http://www.zghiso.com/zghnews1.asp?id=548）
“slight lead” the term used very delicate. As I understand it: China’s lack of international competitiveness of local brands, foreign brands as “slight” edge in point, we are not people opponent; Chinese people “very strong” and “brand awareness” seems to be foreign goods brand, rather than its own brand. （source: ibid）
Before that, we Chinese people have their own company’s brand awareness on domestic consumers build a “one brand mentioned surveys”, the results confirmed my feeling. The so-called “one brand mentioned rate,” that is, in a certain number of unsafe consumer groups, when referring to certain products, consumers first think of a brand with the total number of unsafe ratios. Accordingly understandable given the specific brand products, the degree of representation of the industry. And consumer products to specific brands and distribution of the first reference to the rate of concentrated form, often to reflect this situation and specific product brand competition field growth conditions. Analysis of the domestic brands and international brands in the current test performance shows that domestic brands apart from the local community in a few areas (such as milk, beer), the performance of the more prominent (and their influence concentrated in particular regions, not a national brand strengths), other areas are almost all foreign brands to the world. For example, in beverages, communications product areas, domestic brands and foreign brands Coca-Cola representative, Pepsi and Motorola, Nokia gap is particularly evident. （source: ibid）
At the same time the rate of one brand to our presentation to the two closely related issues : First, the overall competitiveness of domestic brands is far inferior foreign brands, and domestic enterprises must be further enhanced brand awareness; Second, the excessive consumer of foreign brands favored Although generally reflects their sense of high quality, which is a good thing on its own. But this sense of brand associations with some non-rational element, or quality of the foreign brands that bias, or the low quality of local brands stereotypes, and even the growth of local enterprises the development of the national economy will have a negative impact. （source: ibid）
Take a road brand, their own efforts alone is far from enough, the vast number of consumers to the national economic development assistance from the position in their own brand awareness, more autonomy or more brands account. People should know that the consumer is a rational consumer choice, and choice of local brands, in a sense, can embody national rational. （source: ibid）
Of course, we advocate a consumer-brand awareness does not mean that consumers boycott foreign goods, or to harm the interests of consumers with the local community to support vulnerable or low cost brands. In this regard, we wish to learn about the Korean brand awareness. To the government of this country, under ordinary consumers have strong brand awareness of autonomy. In the street, rarely seen foreign brand cars, particularly see Japanese cars; Electrical shops, the shelves are mostly covering their own products. Korean students have a street in Beijing, it is difficult to see the traffic flow of vehicles in China’s brand puzzled, he said, this is inconceivable in Korea.”（source: ibid）
EXAMPLES OF ESTABLISHED BRANDS
An enterprise create brand, not just rely on advertising to build a strong name, but should reflect the brand values for products, embody enterprises themselves elements of strength factors and management elements. And, as a new brand must draw other brands’ experiences and lessons in operation. Because excessive focus on the concept of enterprise, the brand concept will be too vague and general, brand expected value cannot embody in the consumption process.
Errors of Qin Chi and Giant Groups’ brain gold:
Qin Chi group as a county enterprises to create advertising used 3.19999999 billion price, became a hot market economy, that year, it create a good economic returns too. But soon, as a hot image, Qin Chi declined, and the incredible speed.
Similarly, the Giant Groups’ brain gold is scenery in that time too, but it is declined too, because chaotic management and decision-making errors ultimately face closure situation.
Qin Chi and Giant Groups is a good lesson of brand operate undoubtedly, Their brand key element analyze is the main factor in the errors, to such an extent as to excessive focus on the elements’ the nurturing of brand CI, Rely on a strong advertising campaign to build name, as a communication products with consumer unable to embody the value of brands, but there is a huge contrast and brand impact, the brand has become an empty brand.
We can see errors of Qin Chi and Giant Groups is that they did not fail to create a value content; such as Qin Chi input-advertising costs of 3.19999999 billion became a cost. Which customers are willing to when buy your products buy your advertising that tens Yuan. So the failure of Qin Chi was inevitable. Then, Giant Groups is the same.
Lenovo and 999 successful
Lenovo as a brand, it is success undoubtedly. Because when people select and use lenovo, more choose its technology, quality and service, but also to choose Chinese famous brand concepts.
999 group is the case, the image and success of enterprise-specific advertising feature allowing for a unique product concept and rapid occupation of the market as a model of successful brand operation.
Director, Lenovo as a high-tech enterprise, which is still ongoing integration of the operation, it is a business enterprise, also a science enterprises, but also on a certain extent is a concept enterprises. Therefore it is unified on concept of enterprise product concepts and harmony unity.
So, as a new initiate brand, must draw other brands’ experiences and lessons in operation to brand in operation on the above experiences and lessons learned.
In fact, a strong product does not necessarily belong to a strong brand.
RESULT & DISCUSSIONS
Chinese people often complain fight to excel that the national brands, but why nobody think their cause that why is this. And how many people do what for this “disappointing brands”? Merely satire and criticism blindly, They will refer you to look at the Pizza Hut’s door front of a long row or the tale and laugh in Starbucks, but please do not forget those equally long row held the newspaper crowd waiting for called “Chinese style Pisa” Tu Jia sesame seed cakes of that fact.
And the Chinese brand awareness is weak, and very few people consistently maintain permanent loyalty to a commodity. For example, Microsoft, according to U.S. government estimates, about 90% of the software is pirated in China. As one of China’s most visibility of the brand is through piracy with the Chinese people each.
Establish a real brand do not only need someone to create it, also needs the support of national, because along with China’s economic globalization and the strengthening of foreign trade, the brand awareness is undoubtedly important，whoever occupies the market opportunities, He will possess international competitiveness on a long-term. If we do not support own brand, then who will be support it?
At the same time, when an enterprise set up a national brand, it also needs fight to excel for fellow countrymen, and create a real brand. The first brands need have a culture, such as how to eat diet, how to drink wine, services have or haven’t mental feelings; fixed position need accuracy, your serve for who, and then is strategy of brand.
Brands need culture, need get into the people’s spiritual territory, is used to guide the consumer desire of buy. This is the creation and development of brand culture.
Like McDonald’s, which is a brand of “aggression”, it also is brand cultural infiltration, this kind shape of fast-food suit attractive of children and young people. This is the embodiment of brand culture, and change people’s spending habits
Set up brand needs innovation, and the innovation is surprising, have its own content, now when some enterprises fond creation their own brand, Will be taken and have some similar brand name or trademark, the wish to establish their own brand above that will be around but for consumers of their produce adverse psychological, and that it is not a good product, but with goods defective. Does not have its own unique things followers, is not in fact follow the trend of brand innovation, business ideas out. The need to nurture a brand 10 years, 20 years or even generations, like Quanjude, Tongrentang raw from the Qing Dynasty to the store is now on a reputation, on their own real technology, the real core competitiveness to build a brand.
If a company even establish its own brand all do not have confidence, please do not waste resources and feelings for the Chinese nationals to lose confidence in the brand.
In that way how implement brand management strategy? From two aspects go to do, one is that many brand strategy; the other aspect is the single brand tactics. For example: Haier put into effect the single brand strategy is implemented, Haier computers, Haier refrigerators, Haier washing machines are used in the same brand. Single brand is enterprise’s designation and brand name is the same, which will help the enterprises to improve visibility. Can implement multi-brand strategy too, P&G company has many branches brand, such as Panting, Piaorou, getting saturate, it is a multi-brand operation. Single brand has benefit of single brand, many brand has benefits of many brand, as long as positioning accuracy, targeting different customers, develop different brands and different price and different products function.
set up genuine brand internationalization? Because of the many brands in the Chinese do not have a high international profile, how internationalization also from the brand quality, brand positioning and brand innovation must be increased. Like Haier brand has become world-renowned. Originate world-renowned brands in the commodity name, bilingual; Furthermore, the positioning of a commodity name from the concept of internationalization, which is easier to enter the international market.
CONCLUSION
Somebody says Chinese people don’t lack the consciousness of brand, only lack of independent brands, I believe that when our own brands seek the breakthrough, the citizens of our country did not have much concern them.
Encourage independent brands; brand is not just concerned about their academics matter, the significance lies in the building of more Chinese consumers for their own brand of support. When foreign brands were on here when the Chinese brands abroad is cherished more disappointment for the Chinese consumer, the consumer mentality injury necessarily putting China on brand development and brand achieve autonomy technology, such as upgrading the quality of the greatest obstacles to a virtuous circle.
China too lacks their own brand, brand China is thing of every Chinese people, and Chinese brand has been seriously at this time.
June 11, 2006, “brand known” has officially launched in Zhong Hua Shi Ji Tan of Beijing. Scene of activity ceremony in using the “Great Wall” as the background
Soon ago, President Hu also called for “we need form batch have independent intellectual property rights to develop a number of well-known brands, strong competitive industries international competitiveness”.
Brands represent national image, reflects economic strength; Brand is the result of scientific development too, it is the solemn promise to consumers. As for the Chinese nation, brands, innovation and independent intellectual property rights will be a new Long March.
The “brand known” Brand consciousness will spread throughout the country, encouraging innovation, embodied in the ideal of new era, and pursuing the struggle of China’s enterprises. Hop the Chinese people rapid strengthening brand awareness, vigorous sustain and establish our own brand, and also hope that some Chinese enterprises strive to let own products create to the world famous, such as “Hailer” appliances and “Lenovo” computer.
Hope “Made in China” as “Made in Germany” as loud in the future.
“Made in China” have the day of enjoy fame definitely in the world.
Bibliography
Kevin Lane Kellet (2005). Brand management strategy. Chinese People’s University Publisher
Zhang (2006).Chinese leadership brands Series. Guangming Daily Publisher
Manufacturing End Inventory 2006 Bai Du website
Available from: http://tech.qq.com/a/20060320/000262.htm
[Accessed:13th July,2006]
16th Party Congress report 2002. Bai Du website
Available from: http://www.southcn.com/news/china/important/200211120723.htm
[Accessed:18th July,2006]
Shelly Lazarus speak Lenovo 2002 Techweb website
Available from: http://www.techweb.com.cn/people/2005-02-06/1936.html
[Accessed: 25th July,2006]
Brand awareness of not optimistic 2005
Available from: http://www.zghiso.com/zghnews1.asp?id=548
[Accessed:25th July,2006]
One Response to ““Made-in-China” Brand Development by Joanna Zhuan Yu”
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August 31st, 2006 at 10:49 pm
Without a doubt, in order for China products to be successful, a BRAND IDENTITY has to be created.
China has to see herself beyond just an OEM for other international brands. This is the only way forward.
I am happy to see examples like Lenovo and Haier cited in the paper but I guess there will be more globally-recognised Made-in-China brands in future.
The paper has done what it sets out to do and that is to create the awareness and discuss the importance to have a change in mindset in brand strategy of Chinese companies.
Overall, an interesting paper but there are rooms for improvement by going more indepth in your future articles.