Excavating The Intrinsic Value Of Chinese Brands

Every day, you are in close contact with different brands.

When you get up in the morning, you may brush your teeth with Chinese toothpaste and make a cup of soya bean milk with Joyoung soya bean milk machine.

In the office during the day, you use Apple's "iPhone4" to communicate with your customers and use Lenovo's computer to browse web pages.

When you get home in the evening and cook dinner, you use more than Sacon hood, ASD cooker, and rice cooker.

A large proportion of these brands are Chinese brands.

Today, WPP Millward's Millward Brown will first issue the list of the most valuable Chinese brands in China (the top 50 brands in China). China's China Mobile, industrial and Commercial Bank of China and Bank of China are the top three brands in the list of 50 brands.

It is noteworthy that only one Chinese company in China Mobile entered the list of the 100 most powerful global brands in BrandZ in 2006.

In 2010, 7 companies including Baidu and China Merchants Bank entered the top 100 of BrandZ's most valuable global brands.

Compared with 5 years ago, many of them included the list of brands.

The value of local brands

On the list of China's top 50 BrandZ brands, China Mobile has the highest brand value of $56 billion 74 million.

The ranking is similar to the "2010 China brand value list" released by Forbes before.

In fact, before the list, a number of evaluation institutions had ranked the value of Chinese enterprises, but most of them ranked from the perspective of corporate financial status.

Tan Beiping, director of research and development of the China brand top 50 ranking research group, told the first financial daily, the ranking of the list of the top 50 WPP brands in China is not only to examine the financial indicators of enterprises, but also to understand consumers' perceptions of brands from the perspective of consumers.

Tan Beiping said the list was based on a quantitative survey of the relationship between consumers and brands.

"If brand evaluation can not take consumer attitude as a key element, it is hard to say that it is effective."

Another feature of the list is the adoption of a "market-oriented" approach to evaluate consumer oriented brands.

For example, for example, the list is the product brand "Dove", rather than the evaluation of the enterprise name "Unilever".

"This is very meaningful, because the object of consumer preference and loyalty is Dove brand, rather than Unilever's corporate entity."

"The value of a brand is embodied in three aspects."

Tan Beiping believes that first is the intangible assets in the brand financial data, that is, the invisible benefits that the brand can bring, followed by the strength of the brand, that is, the intensity of the relationship with consumers, and then the growth potential of the brand in the future.

When analyzing the financial data of enterprises, the main concern is the financial benefits brought by the brand itself.

In order to avoid increasing the importance of the brand, we must lay aside the income generated by tangible assets, such as machines and factories, and then distribute the total value of intangible assets to every brand owned by the company from the company's open financial data.

The second is to get the survey data about the relationship between brand and consumer.

The intensity of the relationship between brand and consumer is reflected in five levels, including consumer cognition of brand, correlation with consumers, cognition of brand performance, uniqueness of brand display, brand loyalty and so on.

The third aspect of brand value is to consider the potential of brand growth in the future.

In addition to discounting future earnings and predicting brand short-term performance through brand risk factors, brand consumer risk and intrinsic growth potential also become an important factor in measuring brand value.

For example, BYD's growth potential is unanimously optimistic.

Local brands going global

Analyzing the numerous brands listed above, Tan Beiping found that with the continuous improvement of China's international status, the brand of Chinese traditional culture has begun to win the attention of the local and the world.

Many of the top 50 brands listed on the list are brands that represent China's unique traditional culture.

For example, Yunnan Baiyao, 999, Tongrentang in the pharmaceutical field, by developing Chinese medicine, became the first brand in the Department of Traumatology, the leader of Chinese medicine OTC, and the first brand of traditional Chinese medicine.

The philosophy of "heaven, earth, man and harmony" in Chinese culture has also been applied to some brand publicity activities.

If Lining launched the "Tian Di Ren" series of products in 2009, he would integrate sports competition and fanaticism into a harmonious and calm Oriental philosophy.

On the other hand, the establishment of independent innovation brand is gradually becoming the world's Chinese manufacturing industry has begun to show strength.

For example, BYD, the only auto brand in the top 50, is well known as "Build Your Dream" as the brand connotation and shows the style of the local enterprises carrying the dream of the Chinese national automobile brand.

Another reason for its announcement is based on its expertise in battery technology and the potential for future growth in the field of electric vehicles.

In addition, the unpredictable huge potential of the Chinese market has also become the foundation and foundation for some local brands to gain competitive advantages and demonstrate their potential for development.

Brands growing from underdeveloped areas in China are being rid of regional image and internationalization because of their unique advantages in the low-level market, including more competitive prices, understanding and close to local consumers, and improved channels.

These brands include Anta, 361 and Metersbonwe.

These brands, which are successful in China's low-level cities, now pay more attention to brand communication strategies, such as using celebrities, sponsoring high-profile sports teams and sports events, and seeking international cooperation (such as Metersbonwe's MTEE marketing activities) to enhance their brand image and make it more internationalized.

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Build a brand like love.

Brand value is an enterprise.

As a listed company, one of the common characteristics is the continuous upgrading of these enterprises in brand value creation.

China Mobile, for example, spends $7 billion a year on brand advertising, ranking seventh in the country (the biggest advertiser in China is P & G).

Tan Beiping said that brand is the impression of certain products hidden in people's minds.

Brands are sometimes driven by images, such as beverage industry, and sometimes innovation driven, such as the Internet industry or technology industry. Enterprises need to attract consumers through providing quality products and services.

Brand also means contact with consumers.

For enterprises, the process of brand building is like a process of falling in love with consumers.

First of all, enterprises must ensure that consumers know their existence, advertising can help achieve this goal; next, we need to establish brand relationship with consumers, and price factors will play a role in this part.

Some consumers choose a brand and give up the other. The direct reason may be that the price is too high or too low, which is not in line with their own positioning; third, the performance of the brand.

This is very important in any market.

Brand performance can be interpreted as brand persistence, reliability and quality.

Next comes the advantage of the brand, which is the different characteristics of the brand.

The advantage of brand may come from the rational choice of consumers, such as the service of a brand is better than that of another brand, or it may come from the irrationality of consumers, such as the advantage of image driven brand product design.

A notable feature of irrational advantage is popularity.

The reason many people buy a brand is that everyone else buys it.

When consumers discover the uniqueness of the brand and establish a lasting relationship with the brand, they enter the binding process "marriage", that is, the brand begins to gain high loyalty from consumers.

In other words, after experiencing multiple choices, consumers will expect to simplify the purchase process, which will be more loyal to some brands and have a sense of belonging.

For example, Apple phone, although other phones also have many similar functions, but only Apple phone has been sought after by consumers.

The reason is that consumers have established emotional connections with apple brands.

In the "marriage" relationship with consumers, brands should also focus on constantly showing their advantages and characteristics, otherwise, they may encounter "divorce".

"It's like Pyramid."

Tan Beiping said that at the top fourth and fifth levels, the relationship between consumers and brands is high intensity.

Research shows that if consumers reach a binding relationship with brands, the possibility of consumers buying the brand is 10 times that of the brand at the first level only.