China Promotes Independent Brand Construction and Cracks Down on Brand Defects

During the World Cup this year, the sales of the “Whav Zula” horn produced by the Zhejiang Yingning Xidian Jiying Plastic Products Factory was more than 1 million. The price was about 8 US dollars, and its ex-factory price was only 0.3 US dollars. "I earn a dime for each product, and the workers earn a dime." The general manager Luan Jun reluctantly said, "If we do it for half a year, we will all earn RMB 100,000."

From toys to clothing, from small household appliances to steel products, many Chinese products have produced half of the world’s total output, and can export almost 100 million U.S. dollars worth of “Made in China” to the world every hour. However, behind the "glare" figures, it is difficult to conceal the brand dilemma.

In the “V” shape curve of the profits of the international industry chain, one end is R&D, design, and the other is sales and service. A large number of Chinese products are at the bottom of the curve, namely processing and manufacturing. The two-headed industry's profit margin is between 20% and 25%, while the bottom-processing industry's profit margin is only 5%.

According to the statistics of China Textile Industry Association, from 2001 to 2009, the textile industry created a trade surplus of 1144.377 billion U.S. dollars, accounting for 82.78% of the country’s total trade surplus, but the products exported by independent brands accounted for only 10% of all export products. about. According to the data provided by the Ministry of Industry and Information Technology, among the export products of the country, less than 20% of the export enterprises have their own brands.

"The clothes produced by Chinese companies can be 3-5 times more expensive when they are tagged with foreign brands. This shows the value of the brand," said Wang Tiankai, vice president of the China National Textile and Apparel Council.

Chinese manufacturing companies continue to export branded products in accordance with various international standards, providing cheap production capacity for international giants who have mastered core technologies and sales channels. It is difficult to get rid of the fate created for others. Zhu Hongren, Chief Engineer of the Ministry of Industry and Information Technology, said: "The lack of brand has become a kind of advancement for China from a big manufacturing country to a manufacturing power."

It is understood that the core technology of China’s industrial development remains highly dependent on the outside world, and its independent innovation capability is insufficient. The key technologies of many industrial products rely on the introduction, digestion and absorption are slow to innovate again, and the technical content of industrial products is not high. The corporate brand awareness is indifferent, the brand cultivation is insufficient, the brand added value is low, and the market competitiveness is not strong.

Minister Li Yizhong of the Ministry of Industry and Information Technology believes that a large number of foundry production and low product quality has become a prominent issue that has constrained the steady and rapid development of China's industrial economy, and has become a severe test for Chinese independent brands. "The priority of China's industrial products is to develop varieties, improve quality, create brands, and improve services."

"The lagging development and poor marketing channels are two major bottlenecks faced by China's own brands." Zhu Hong Ren believes that independent innovation and self-owned brands are the core competitiveness of modern manufacturing. From the perspective of China's industrial transformation and upgrade, independent brands have been given more. Multi-quality varieties, services, social responsibility requirements.

Since the international financial crisis, when the world's veteran communications equipment makers fell into profits, losses, layoffs, or even bankruptcy protection, ZTE, the private enterprise led by Chairman Hou Weigui, took advantage of changes in the competitive landscape to successfully seize international communications 3G and 4G. Take the initiative and advance into the world's first phalanx. Currently, ZTE's products have entered 51 of the world's top 100 telecom operators, and overseas revenue accounts for 60% of the company's total revenue.

Hou Weigui said: “Even in the international financial crisis, when our competitors are under pressure to narrow the R&D scale, our R&D investment growth still exceeds the income growth rate. So in the global competition, especially in the In the competition between the European and American high-end markets that value technology and the communications industry is facing an upgrade, we are gradually showing our advantages."

"The cultivation of the brand can not be quick success, can not be achieved overnight. In time, I believe that with the improvement of the country's own strength, there will be a rise of a number of independent brands, which is the inevitable result of China's manufacturing industry accumulated for many years." Zhu Hong Ren said.

Qingdao is one of the earliest cities in China to implement brand strategy. Haier, Hisense, Tsingtao Brewery, Qingdao Port, and a large number of well-known brands and advantageous enterprises with independent intellectual property rights and strong international competitiveness have played an important role in the development of Qingdao's urban economic development level and core competitiveness. At present, there are 17 state-level technology centers in Qingdao. The carriers of these technological innovation centers are all brand-name large enterprises. They not only develop new and high-tech products for the company each year, but also undertake state-level key technological research topics.

Li Yizhong said that in the next step, China will use home textiles, clothing, household appliances, and automobiles as its starting point to promote the construction of independent brands, encourage regional, industry and industrial clusters with conditions to cultivate regional and industry brands, and study and introduce guidance industries. Product brand building policy measures.