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    Why Can Chinese Entrepreneurs Fail To Produce Local Brands?

    2011/5/5 15:37:00 65

    Brand Market Consumers

    China's model is becoming more and more popular. China makes cheap products for the whole world by cheap labor costs and low environmental costs. The whole world is inseparable from China's manufacturing.

    However, there are serious flaws in the Chinese mode, namely, the big country's few goods, that is, when the economy is developing at a high speed, it fails to set up China.

    brand

    In the global position.


    While Europe and the United States have been developing at the same time, they have achieved the same pace of brand building.

    For example, in the comprehensive revitalization of the German economy, Mercedes Benz and BMW all over the world, Germany made world-renowned; when the Japanese manufacturing culture spread around the world, Japanese brands rose rapidly, Panasonic, SONY and TOYOTA were popular in the world. The former Japanese Prime Minister Nakasone Yasuhiro once proudly said: "in international exchanges, SONY is my left face and TOYOTA is my right face".

    These rising brands spread the image and connotation of their own national brands to the world, such as Microsoft, IBM and Boeing in the United States, representing the advanced technology of the United States.

    Economics

    Germany's Mercedes Benz and BMW motor represent the image of great power made by Germany's Seiko.


      

    The most dangerous time


    China is the birthplace of the world's brand. When our ancestors were enjoying gorgeous porcelain, fine silk and delicate food, Europe and America were still groping in the dark.


    A rising power must have its own world-class brand.

    Chinese entrepreneurs have never given up the dream of building world-class brands. Lenovo, Haier and Tsingtao are all moving out of the country and heading for the world.

    However, the international competitiveness of Chinese brands entering the twenty-first Century has not increased synchronously with the national strength.


    Foreign invasion refers to the fact that Chinese brands have been bought by foreign brands in the fierce competition of global economic integration, and then disappear in the market.


    Apart from foreign aggression, Chinese brands are also beset by internal worries.

    This is the consumption tendency of Chinese consumers to worship the ocean, proud of buying foreign brands, and proud of not buying domestic brands.

    From Chinese tourists to search for world famous brands overseas, we can see the strong consumer sentiment of Chinese consumers.


     

    Crying curve


    Smiling Curve is the theory put forward by Mr. Stan Shih, founder of Acer group in 1992.

    The so-called smile curve is a smile shaped mouth curve, both ends up.

    The middle of smile curve represents manufacturing capability, the left side is R & D and innovation capability, and the right side is

    market

    And brand capability.

    Smile curve requires enterprises to pursue R & D capability and market and brand capability on both sides, and weaken manufacturing oriented capability.


    The crying curve and the smile curve are just the opposite. In the crying curve, the manufacturing ability is in the strongest position.

    The current situation in China is precisely a crying curve, high manufacturing capability, low R & D and market capabilities.


    China's strong manufacturing capacity does not bring enough profits to Chinese enterprises. The Chinese tea industry has a saying that "seventy thousand tea factories are not a Lipton", which fully reveals the current situation of most Chinese enterprises.


    The first change that Chinese enterprises face is the change of development mode, from the crying curve to the smiling curve.

    Because of the low profit generated by the current manufacturing industry and the oversupply of global manufacturing, the added value of R & D and marketing is high. Therefore, China's industries should develop towards the two ends of the smile curve in the future, that is, strengthen R & D innovation on the left side, and strengthen customer oriented brand, marketing and services on the right side.


      

    Business or brand?


    Most Chinese business owners are opportunists. They pursue business thinking and do not raise branding to the height of business strategy.

    Since business is done, it is the sole purpose of making money, making money to earn money, and why not to sell it.


    It is this opportunistic business opportunism that makes Chinese brands lose more opportunities and lose the opportunity to go to the world. Most of the promising brands die in the thinking of entrepreneurs.

    If China really wants to develop its own national brand and really create a world-famous Chinese brand, it must change its business philosophy and set up a hundred years' brand management strategy.

    We should not regard the brand as a pig raising, sell it as a fattening, nor regard the brand as a foster daughter. If we grow up, we have to get married. Instead, we should regard the brand as the son passed down by the incense, and carry it on from generation to generation.


    At the same time, brand management will bring more competitiveness to enterprises.

    With business thinking and business failure, the business went bankrupt.

    If we operate with the brand concept, the business will go bankrupt, but the brand will still exist, because the brand has the ability to exceed the business entity.


      

    Far away from Shanzhai


    Today, China has conquered the whole world by "made in China".

    But the evaluation of China made in the world is more derogatory than praise. "Made in China" has been crowned as "Shanzhai manufacturing". Foreign power has commented that China is the world's best country to imitate foreign products and brands.

    China seems to be China in Shanzhai.

    A business owner once said, "give me a sample, I can conquer the whole world."

    What products are popular in shopping malls, they will copy them as they are, and then sell them at an extremely low price in the market.

    From old leather shoes to Armani clothing, from LV bags to Rolex watches...

    The most typical example is "Shanzhai mobile phone".

    Walking in the streets and streets, there are all kinds of "Shanzhai" machines everywhere.


    In fact, China is a country with strong innovation capability.

    Before that, there was a worldwide survey of intelligence quotient. Among the world's initial IQ tests, Chinese were among the best in the world.


    Chinese enterprises should regard Shanzhai imitation as a small stage in the development process of "made in China". The innovation ability of Chinese enterprises should be constantly promoted, and the long-term development of innovation should be won, rather than the survival of Shanzhai.

    It is necessary to rise from the stage of "painting the cat to the tiger" to the level of "cat painting Panda".

    The so-called panda painting is not only good at "bringing" other people's things, but also better at upgrading and innovating the "bring" things, so as to "draw" something that truly belongs to them.

    When "made in China" breaks through the realm of "cat painting Panda" and can "draw pandas" by itself, China also owns a number of brands that really belong to them. "Made in China" can really win the favor of the world.

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