The Rise Of Shanzhai Brand &Nbsp; China's Market Has Formed A Multi-Level, Multi Source Brand Structure.

After more than 30 years of reform and opening up, China market The total scale has expanded by 70 times, from early Japanese appliance brands to later European and American brands. brand Closely followed by the growth of national brands and the rise of cottage brands in recent years, the Chinese market has formed a multi-level, multi source brand structure.

1. Current China Consumer Brand choice

Since China's entry into WTO, Chinese brands have been developing rapidly in the baptism of the international unified market. Along with the transformation from manufacturing in China to China, Chinese brands have become the main body of brand consumption of urban and rural residents, and have occupied more than 8 of the market share. Among them, the famous Chinese brands and joint venture brands account for about 60% of the market share.

At present, Shanzhai brand has become a force that can not be ignored in the middle and low end market. These brands are mainly found in watches, sports shoes, suits, underwear, mobile phones and other product categories. Like all developed countries, the beginning of Chinese brand innovation is imitation. The cottage brand is just a by-product from China to China in the process of transformation. The existence of a large number of middle and low income groups in China, and the inability of intellectual property protection, form a Shanzhai phenomenon in recent years.

Because of the growth of Chinese brands, the proportion of pure international brands in urban and rural consumption accounts for only about 10%, but in the high-end market, international brands still occupy an important position. The current Chinese national brands rely mostly on marketing gimmicks and appearance to win. This appears to be simple and effective in the rapidly expanding primary market stage, but when the speed of economic development returns to rationality, the benefits and values brought by performance and quality are the cornerstone of brand power.

According to the brand consumption of 18 kinds of daily necessities of domestic and rural residents, the Chinese brand market has three kinds of patterns.

The first is the balance of international brands and Chinese brands, of which mobile phones are the representatives. In such a market, international brands have traditional advantages, and the development of Chinese brands is faced with strong barriers.

The second category is the brand melee market, such as watches, underwear, suits and so on. In such a market, more than 30% of consumers do not know their brands, which means that consumers have not yet established a strong sense of brand in these products. If Chinese brands can learn to guide consumers to brand consumption, they can turn the trend of weak brand awareness to loyalty to their brands.

The third category is the dominant market of Chinese brands. Among them, some consumer goods are dominated by domestic brands, such as milk, washing powder and beer. Because of the homogenization of products and the geographical advantages of food and beverage, Chinese brands still have a strong dominant position. In other products, such as computers, razors, microwave ovens, air conditioners, sports shoes, televisions, washing machines and so on, Chinese brands dominate, but international brands also occupy a certain share. It is noteworthy that in such markets, international brands occupy a large share of the high-end market. Therefore, for Chinese brands, how to enter the high-end market and get recognition is an important topic.

　 2, the future trend of brand consumption

The consumption gap between the actual brand and the ideal brand of urban and rural residents reveals the potential driving force of brand consumption that will affect the future market. The future pattern of brand will be the result of the interaction of potential consumer trends and the strength of Chinese brands and international brands. The gap between reality and ideal reflects to some extent the trend of future development.

First of all, Chinese brands will still face strong shocks from international brands. In the ideal brand consumption of urban and rural residents, international brands occupy nearly 40% of the share of the intention, compared to the actual share of only 10%, which means 30% of consumers' vision of international brands. With the increase of domestic income, the change of RMB exchange rate and the decrease of international brand prices, the price of Chinese brands will be more easily accepted by Chinese consumers, and Chinese brands will face more severe challenges. Especially in the high-end market, the share of the international brand occupies an absolutely dominant position, which means that when the conditions permit, the urban and rural residents will not hesitate to tend to the international brand.

In addition, as mentioned earlier, the cottage brand is only a phased product created by China to create a transition period in China. According to the trend of data display, under the conditions of the situation, the ideal consumption of urban and rural residents is almost not including Shanzhai brand, but the cottage brand will eventually die out. On the one hand, due to the continuous development of China's economy and the transformation from investment driven to consumption driven structure, it will bring rapid growth of residents' income, consumers have the ability to choose regular brands, and on the other hand, the market will become more formal if the awareness of intellectual property rights is enhanced and supervision is strengthened. {page_break}

3, competition environment faced by Chinese Enterprises

At present, the brand consumption of the Chinese market has formed a multi-level, multi source brand structure, which can be said to be in the most chaotic period of competition. This has formed a favorable period for the development of Chinese brands, especially the national brands. The future development of the market will tend to be more orderly, and the main performance is the national brand and the international brand competition.

From the perspective of the overall market, Chinese national brands occupy a share advantage and price advantage. In the next 5-10 years, the income of domestic residents will increase rapidly and the size of the middle class will expand rapidly. Usually, when developing countries enter the fast economic growth, the income growth of residents tends to be lower than that of GDP growth, and more savings are invested and reproduced. When entering the stable period of economic growth, economic growth is mainly driven by consumption, and the growth of residents' income will exceed GDP growth. At the same time, the appreciation of the renminbi is also expected. This means that the Chinese residents' consumption ability of international brands will be greatly improved in the future, and Chinese brands will lose their price advantage, which will bring severe challenges to Chinese brands.

In shaping the brand, the fast developing Chinese brand is not lagging behind in the competition of "fast marketing and fast brand", and it has various means, constantly winning tricks and matching price advantage, thus occupying considerable market share. But after the boom, what does Chinese brand precipitate? Is the cultural connotations and service concerns of Chinese brands formed? From the consumers' expectations of international brands, we can clearly see the gap.

4, brand strategy choice of Chinese Enterprises

Under the current brand structure advantage, Chinese brands, especially national brands, need to have a forward-looking sense, making use of the current share advantage to transform it into a time advantage so as to narrow the gap between the international brand in terms of product basis and cultural connotation.

While maintaining the market position, Chinese brands need to plan the improvement of product strength in a planned way. Of course, the promotion of product strength, the mastery of core technologies, the accumulation of experience in management and production, and the innovation of science and technology will take time. Compared with the famous international brands, Chinese brands have no cultural barriers or brand assets. When many international brands enter China, the original brand image is difficult to connect with Chinese consumers and consumer culture. The globalization brand strategy and positioning have limited adjustment space for China's market operation.

Chinese brands should take advantage of this advantage, grasp the psychology of Chinese consumers, study the core demand of the target market for product value, find the unique advantages of their products, and integrate their unique advantages with consumers' value aspirations. Chinese entrepreneurs are prone to make two mistakes in making brand. One is to regard their brand of imagination and expectation as brand in the eyes of consumers. The other is only willing to do addition rather than subtraction. When brands and products are disseminated, they want to tell consumers all the advantages, but do not know how their brands win the true value of consumers. The unique attributes of products are not necessarily the most important attributes of certain products. Safety and honourable are important attributes of automobiles. Cool and fashionable are the important attributes of beverages. But if all brands emphasize the same value, they will become "almost" marketing by a marketer, which will only make consumers forget your brand.

At present, Chinese brands need to know clearly the market structure of their products, whether they are the balance market, the mixed market or the dominant market.