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    How Far Is It For Chinese Enterprises To Build Brand Names?

    2010/11/13 14:01:00 69

    The Road Of Chinese Enterprises Famous Brand

    Enterprising entrepreneurs have created their own days in the mainland. However, with China's accession to the WTO, foreign commodities are pouring in continuously, and the domestic market is no longer calm.

    And who will be the biggest winner in this smoky shopping mall?


    Create a brand of your own


    Now in China, if we want to become rich, we must first create a brand of our own.

    So is Wong Kwong Yu, 35 years old.

    He first started from the small appliance retail stalls, now has created China's leading electrical appliance retail companies Gome, has more than 100 outlets in the mainland, sales reached 2 billion U.S. dollars, its popularity in China is just like Circuit City and Best Buy in the United States.


    The development of Gome is only a representative of the history of many brands in China.

    Entrepreneurs all over the world want to see China's rapid development and the creation of domestic brands, both big and small.

    "They will definitely go to the world," said Green Moffet, executive director of ACNielsen in Shanghai, China. "With their vast resources and production base, they have the ability to attack the world brand."


    Besides Gome, there are many famous brands in China, such as Haier, Hangzhou Wahaha, TCL, Lenovo and Lining.

    Faced with the prosperity of many brands and a hundred schools of thought contending, domestic brand observers are still worried.

    They found that Chinese manufacturers generally ignored the development of new products and technologies, but blindly won the market by price war.

    People can't help wondering, "can this means that they can export their goods abroad?" Tom, CEO of China advertising planning company in Greater China, said: "according to this situation, they still have a long way to go."


    The Koreans spent 20 years pushing their products to the international stage and holding their feet.


    At first, Koreans spent 20 years pushing their products to the international stage and holding their feet.

    No one has ever predicted that Samsung, LG and Hyundai will have a bright future as they are today.

    Therefore, when Chinese brands want to reach this level, they must suffer many setbacks, but ultimately they must be the big winners in the foreign and mainland markets.

    Unlike Japanese nationalism, some companies in China rely on the strength of foreign companies, while others prefer to sign their foreign partners' brands into overseas markets.

    For example, TCL is dependent on RCA (Radio Corporation America) to enter the US market.


    There is a large market in China, and the profits derived from it are used to raise funds and concentrate on the competition in the overseas market.

    "The market share is fluctuating, and some Chinese manufacturers will grow up, but this is also a learning process," said Bauer, director of McKinsey Shanghai branch. "But there is no doubt that the world famous Chinese brands will emerge."

    In the process of learning, not only is it necessary to learn how to produce better products, but also to learn more effective marketing methods.

    President of Ogilvy&Mather and Cherie Lazero CEO held a business conference in China.

    At this meeting, she felt that Chinese manufacturers lack the necessary business knowledge: "most Chinese manufacturers have not yet understood what we mean by" making the brand take root ".

    But they are trying to understand, but they can not digest the concept at the moment, but soon they will understand.


    The oversupply of market makes the competition between manufacturers more fierce.


    Because of the overcapacity of many manufacturers, the market supply exceeds demand, which makes the competition between manufacturers become more and more fierce.

    In addition, the phenomenon of plagiarism is becoming more and more serious. From Tsingtao Brewery to Lining, there is no escape.

    The only way to force forgery out of the market is to cut prices.

    This embarrassing and contradictory situation makes the well-known enterprises both at home and abroad laugh and cry.


    Under the competitive environment and difficult environment, it is imperative to innovate the quality of Chinese products.

    Today, there are few companies that are willing to spend 5% or more of their profits on R & D technology, which is bound to become a stumbling block in the domestic brand extension market.

    Take mobile phone market as an example, from 2000 to 2003, domestic mobile phones, such as waveguide, TCL, Xia Xin, panda and so on, were praised by domestic consumers for their small and beautiful appearance, and their market share rose from 0 to 50%.

    "We must be careful of these competitors from China," said Maus rice, NOKIA's China market development manager. "They are as aggressive as wolves."

    However, after six months, these "wolves" were defeated.

    Motorola, NOKIA and Sony Ericsson mobile phones have added new functions and made some adjustments in price, resulting in a sharp decline in sales of domestic mobile phones.

    Patrick, director general of Motorola mobile sales, said: "in the past three years, China's domestic mobile phones have been selling well, but their golden age will come to a conclusion early this year."


    Wise avoidance of the competitive market


    The increasingly fierce competition has also affected the retail market, at least in the short run.

    Domestic manufacturers have advantages in linking small shopping malls and retail stalls. However, with China's accession to the WTO, its vast market will be opened to the world, so local enterprises will be subjected to great impact.

    To take advantage of this offensive and defensive battle, manufacturers began to sit down and think about their strategies.


    Most manufacturers have begun to introduce technology.

    Development

    Over the next few years, TCL will increase the amount of money spent on developing new technology from 3% of its original profit to 5%.

    Chen Hong, vice president of SVA overseas market, said: "we can not be stingy in investing in new products.

    If we only know how to write articles on the price, sooner or later we will be eliminated.

    SVA co production with NEC company

    liquid crystal

    Display.

    TCL has introduced the television lines produced by Thorpe Sen and the advanced technology abroad to increase its sales abroad.


    In addition, some companies first study and understand the needs of overseas markets, and then develop effective marketing strategies according to the findings.

    Haier, for example, is favored by Japanese people in Japan for its pocket sized models of water saving, super quiet and suitable for narrow Japanese style houses.


    And companies are wise to avoid.

    compete

    In the busy market, the main selling areas are located in areas where competition is slow.

    Wahaha company is avoiding the frontal collision with Pepsi and Coca Cola Co, and focuses on the sub developed areas such as Kunming and Yunnan.


    The rest of the company's products are tailored to the masses in economically underdeveloped areas.

    Guangdong Kelong electrical appliances is designed for families with low incomes to introduce their refrigerators and air conditioners.


    It can be seen that Chinese manufacturers are beginning to learn how to meet challenges.

    Lining hired Wu Xian Yong, the former Procter&Gamble manager, to help run the business and market plan.

    Wu let Lining's products become the designated products of Chinese athletes. This product positioning made Lining's achievements in the Olympic Games prevail, which accounted for 12.36% of the market share.

    Nanyang, vice president of Chery overseas promotion and former Shanghai Volkswagen Co.Ltd general manager, has successfully promoted Chery to Arabia market.

    Wahaha company also produces Chinese cola.


    At the same time, domestic manufacturers also began to focus on the use of large-scale advertising to create their own momentum.

    Last year, the total advertising expenditure in China reached US $2 billion 400 million, becoming the third largest advertising market in the world.

    With the 2008 Olympic Games approaching, advertising spending will continue to grow.

    Now Lenovo has competed with the first sponsor of the Olympic Games, along with Coca-Cola and Panasonic Corp.

    Even without the Olympics, the sports industry is the best market for publicity.

    SVA in order to maintain his position in China's leading brands, he bought the Shanghai team in 2001, and at the same time, he had his own foothold in the United States.

    Chery learned from Korea's early market strategy and successfully moved to other developing countries in the Middle East, thus making it the first step in its overseas expansion.

    In October 10th, Haier announced that its research and development centers and factories in India have been built.

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