Thinking Behind The "Cattle" Principle Of Foreign Brands

This summer,

The response of these foreign brands is fascinating: delays, neglect, shirking responsibilities and rambling arguments are hard to satisfy domestic consumers.

People can not help asking: why can Chinese brands in the Chinese market be so "bulls"?

From brand loyalty to brand superstition

In Louis Weedon's flagship store in Beijing, a canvas bag was sold to nearly ten thousand yuan, but there were always people waiting in line at the gate. The customers who came back to their customers seemed to have four words "value for money".

In the local brand store of Louis Weedon's high grade shopping mall, he heard such a lot of times.

Liu Junhai, vice president of the China Consumer Association and professor of Renmin University of China, said that many foreign brands of multinational companies have always been "high-end products" with high expectations, high trust and high subjective acceptance in the minds of many consumers. For these products, consumers are more willing to accept higher premiums than domestic products of the same type. This is because consumers believe that foreign brands have higher social responsibility, better product quality and stricter standards than domestic brands.

And this series of foreign brand products have problems, indicating that consumers pay higher for foreign brand products or services.

Some domestic goods are also hard to resist.

According to a report released by the General Administration of customs this year, more than 80% of the domestic consumers believe that the quality of foreign milk powder is superior to that of domestic milk powder. Most consumers choose to buy imported milk derived milk from domestic production or buy foreign original milk powder through online shopping.

Since the "melamine" incident, domestic consumers are more trusting of foreign milk powder, and the substitution of high-end dairy products has declined, leading to the market position of foreign milk powder is even more shaken, and the market share of domestic dairy products is further reduced.

As a result, foreign milk powder has already monopolized the market of the first tier cities, and the foreign brands such as Mead Johnson, Nestle and Wyeth have occupied more than 80% of the high-end infant formula market.

Competition is an important means to guarantee the quality of commodities.

In the highly competitive market of similar products, businesses will take the initiative to strictly control the quality of products. However, for those foreign brands that have become monopolistic industries, without competition constraints, enterprises will probably relax their self-discipline requirements and lead to a decline in product quality.

In fact, apart from the dairy industry, there are monopolistic phenomena of foreign brands in many industries such as daily chemicals, food, fast food, edible oil, automobiles, household appliances and so on, which are closely related to ordinary consumers.

The control of market makes foreign brands have greater processing space and smaller competition pressure after quality and service problems, and also encourages their strong attitude towards consumers.

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Huge profits drive foreign brands to be ugly.

Da Vinci furniture has been exposed, and the counterfeit foreign goods such as the European Code floor, the milk powder, the French Union, the American Camel shoes, the American California beef noodle and so on have been exposed. But how many fake foreign brands are hidden? No one knows why, and why are those domestic products hanging on the top?

Yao Liangsong, executive director of the cabinet and Specialized Committee of the National Federation of furniture and decoration industry, and the wardrobe Specialized Committee executive director, said, "the Da Vinci furniture fraud incident" fully exposed some illegal enterprises in the industry for profiting profits, completely ignoring the interests of consumers and deceiving consumers. It also made consumers more clearly aware of some pitfalls in the household industry, and began to become rational consumers.

According to the survey, nearly 90% netizens believe that Kentucky's apology is forced by public opinion rather than sincerity.

All along, KFC has appeared in front of consumers with a healthy and socially responsible image. Recently, the emergence of "soy milk gate" and "quality gate" has pushed Kentucky Fried chicken into the cusp of public opinion.

An industry person says it is no exaggeration that China has set up the Kentucky brand.

But now, this is the place where KFC is proud of its restaurant chain, but it has to endure the food quality and safety problems of Kentucky Fried Chicken. There was "Sudan red incident" in 2005, followed by "soy milk door" and "quality gate".

KFC needs introspection.

The OTIS elevator accident is also being fermented and upgraded. Following the safety situation in Guangzhou, Shanghai and Nanjing, Shenzhen Metro has made 340 decisions on the closure of all the Otis 513MPE elevators. The special equipment safety supervision bureau of the AQSIQ is investigating the escalators automatically, and it will be ordered to stop and be dealt with strictly according to law.

The same is the "foreign brand", Otis Elevator and Da Vinci household are basically the same fault, starting from the cost, or to reduce the quality standard or confusion concept.

It is also necessary for Chinese people to work together to supervise foreign brands.

It is understood that Italy and other European countries are very strict in the regulation of origin.

Even the top luxury brands such as GUCCI and LV are manufactured by Dongguan foundries and sold in European markets such as Italy. It is also clearly marked "MADEINCHINA".

On the contrary, there are many imported brands in China. There are various ways to enter the Chinese market by various brands, such as opening up exclusive stores, independent stores, authorized agents and so on.

Only a small number of agents are willing to sign agency agreements with foreign manufacturers, and it is not easy to obtain the agency rights of imported brands legally through regular channels.

Insiders said that under the current economic globalization, processing trade and OEM production have become the norm of international trade and manufacturing.

In order to reduce the cost of production and circulation, it is understandable that the whole process of production must be open and pparent.

There are two things that can be provided in real imported furniture. One is the proof of origin of products that prove the origin of the product or change the nature of production in a country. Two is a standardized and marked price tag.

As a result, experts point out that "fake foreign brands" are some unethical or illegal means used by merchants to make profits, but there are still many loopholes in China's regulatory system.

Furniture imports must pass through the gateway of industry and commerce, quality inspection and customs. In fact, due to the involvement of imported furniture supervision in various departments and the implementation of piecewise supervision by each department, there will be a phenomenon of self regulatory departments.

The legal profession has also pointed out that the fundamental reason for the spread of fake foreign goods is that the legal mechanism of market supervision and illegal punishment is flawed. Legal constraints, weak supervision, and inadequate punishment have led enterprises to repeatedly test the law.

For example, the consumer rights and interests protection act and so on are punished or ambiguous, or lighter, or even not punished.