National Brand Was Thrown Away

Ever since the reform and opening up, many of the old brands that were once famous for their fame and fortune have lost their former brands. market Occupancy or disappearance. This makes many consumers, especially middle-aged and old people. consumption Sorry. What made these old brands lose their past? Elegant demeanor What about it?

Lack of competitiveness

The goodwill of the national brands that people are missing now are mostly established in the early stage of the planned economy or in the early stage of reform and opening up. At that time, manufacturing enterprises still dominated the state-owned economy. Private enterprises simply did not exist or just started to develop, and foreign-funded enterprises were also subject to large investment restrictions. In addition, our productive capacity of material products can not fully meet the needs of people's growing material and cultural life. The market is in a stage of "seller's market" which is in short supply, and there is no market competition in the industry.

Under such special circumstances, state-owned enterprises, especially those large state-owned enterprises that have the opportunity to adopt more advanced equipment in the national planning environment, can easily establish popularity and market share, and even do not even have advertisements, such as "Phoenix Huang" bicycles, "brand" watches, "Butterfly" brand sewing machines, "35 card" clocks, etc.

Therefore, this brand is not the result of market competition under the market economy condition. The lack of market competitiveness can only be the flower of greenhouse. Once the market competition is introduced, with the competition between private enterprises and foreign-funded enterprises, many old brands will often be eliminated because of the lack of real market competitiveness. Although we hope that all of these brands will survive and grow, they will become world class famous brands one day, but this is an unexpected outcome.

Why are old brands formed under the planned economy difficult to survive in a market economy? The products of these old brands share a common feature: they lack the sensitive response to the needs of consumers, and lack the ability and power to develop new products. Some products have remained unchanged for decades, and even the color will not change, let alone the research and development of new products and new technologies.

For example, China is the largest bicycle producer in the world, but our bicycles have remained unchanged for decades before the market reform. They retain the original mode of learning how to build bicycles. How can such enterprises adapt to the competition of the market? How can they meet the needs of consumers? How can they survive and develop in the fierce market competition? The products at that time were "the daughter of the emperor is not worried about getting married". Now the economy has been enlivened, the market has been liberalized, the private economy has come, foreign enterprises have come, there is competition in the market, and there is no shortage of goods, so the living environment of enterprises is quite different.

People are pessimistic about the decline of old brands. It seems that we will never have our own national brand again. In fact, we should not be too pessimistic about the growth of new national brands. We often see only the declining old brands, but fail to notice that more national brands are growing up in the fierce market competition. {page_break}

Market competition is like this. If there is life and death, survival of the fittest, alternation of new and old, otherwise, how can the economy develop forward? We should face the future with confidence. The truly competitive and internationally competitive national brands will grow with the development of the economy.

We should believe in the wisdom of the nation. Our country is creating a more open, free and fair competitive environment for the development of national enterprises. With the growth and growth of national enterprises, a number of competitive national brands will emerge.

In the market economy, the ups and downs of enterprises and brands are all normal. Nowadays, international famous brands and multinational corporations are the last winners in decades or even a hundred years of intense international competition.

At the same time, our country has become a big manufacturing country in the world. At the same time, there are few famous world-famous brands, which belong to the small brand country. This is also a frequent criticism of national enterprises, but this is a normal phenomenon. We only have a short period of less than 30 years to engage in a market economy, and national enterprises have been going to the international market for nearly ten years.

At this stage, the large-scale development of manufacturing industry in our country is the result of market selection. Japan, South Korea and China are all taking this step by step. Do not easily blame entrepreneurs for being ambitious and content with making small profits. Entrepreneurs are the most visionary, creative and favorite "money" people. They only do things that are most conducive to wealth creation. There is no doubt about that. "OEM" rather than self created brand is due to the opportunity and risk. It's easy to register a brand, but making this brand into a competitive brand is a matter of high risk, high investment and a long process.

Foreign encroachment

"National brand is not only an enterprise, but also a nation. Without the rise of national brands, the economic strength of a country can hardly be said to be really strong. For the importance of national brands, Li Jianping, partner and acquisition lawyer of Ying Ke law firm, said in a recent interview with reporters.

Because of the deep affection for national brands, the research on M & A has always been one of the areas where Li Jianping lawyers devote most energy. He told reporters: foreign investment in China's enterprises "M & a policy" mainly includes "control, annex, monopoly", and in specific means, the foreign party most often used four strokes.

The first method is called "decapitation action" by lawyer Li. He explained that the "decapitation action" usually refers directly to the industry leader. "After the completion of mergers and acquisitions, foreign capital will usually put the Chinese brand on hold for various reasons, and then use the Chinese channel to vigorously promote its products, so that the Chinese brand will gradually lose its vitality, so as to achieve the effect of replacing it."

A typical example is. Born in 1962, it was the favorite cosmetic brand of Chinese people. It was the first in many years. In 1990, China has entered the peak of its policy to attract foreign businessmen, and has been jointly invested with another brand of Jahwa, including Unilever. The company was discounted for 12 million yuan and invested in the joint venture. However, after the joint venture, the foreign party did not keep its promise to increase investment, but reduced its publicity. {page_break}

In 1991, its annual sales plummeted to 250 million yuan from the previous year to 6 million yuan. Once the "first skin care brand" seems to evaporate overnight, Unilever's "jenno" is advancing rapidly in the market.

Jahwa couldn't bear to see his brand shrinking gradually. After many negotiations, in 1994, he spent 500 million of the sum of money to recover the money, but at that time, it was already on the verge of death.

The second way is to "drag down the encroachment and compete for the status of major shareholders". Lawyer Li told reporters: "usually, multinational corporations will take advantage of their own advantages to make use of the psychological and administrative pressure that China is eager to attract investment, and raise various inequalities, such as adhering to joint ventures with quality assets of Chinese enterprises (the most core technology and most profitable part of enterprises), requiring holding and sole proprietorship, lowering the valuation of Chinese equity and controlling the operation rights of enterprises."

After signing the overlord clause, the foreign party will step by step. First, a joint venture and a controlling stake, and then the joint venture will be in a state of loss or profit for a long time. After that, the proposal to increase capital and expand shares will be introduced, forcing the Chinese side to sell all the shares, and then "miraculous" to make the sole proprietorship return to profitability.

Founded in 1988, it has been the leader of the battery manufacturing industry throughout the country for many years. The US Gillette Company, which has entered China, has not been able to open up the market for a long time. Its market share is less than 10% of that of Nan Fu. However, it is surprising that in 2003, when Nan Fu battery occupied half of China's battery market, Nan Fu was suddenly bought by the US competitor, and the public opinion was in an uproar.

It turned out that as early as 1999, when the golden opportunity of South Fu development was achieved, under the request of the government to attract foreign investment, the shareholders of Nan Fu battery invested 69% of South Fu as a contributive to a number of foreign investment banks. Among them, the foreign party held 49% and the Chinese side held 51%. {page_break}

After that, Nan Fu once suffered huge losses and was under pressure. Nan Fu immediately sold shares to foreign shareholders. By 2002, foreign shareholders held a 72% stake in Nan Fu. What South Fu never thought of was that the foreign shareholder holding South Fu sold all the shares of Nan Fu battery to the US, and made a huge profit of 58 million dollars. In August 11, 2003, the United States announced that it had bought the majority stake in China's battery manufacturer, Nan Fu battery, which became a subsidiary of South China, and most of the Chinese market got it.

The third way is to aim at China's large and medium low end consumer groups, and to occupy the Chinese market by buying and selling locally successful brands at the bottom of the brand chain.

China's famous skin care brand Dabao is a typical example. Founded in 1999, the Dabao Cosmetics Co., Ltd. was transformed from the joint-stock system of the San Lu plant. The state-owned factory, which has more than 20 years of brand history, enjoys extensive trust in the Chinese working class through its popular price and excellent quality.

In July 30, 2008, the US company bought 2 billion 300 million yuan for Dabao. Although today, Dabao is still active in the eyes of ordinary people with its cordial appearance, but it is no longer a national brand. Taking advantage of the acquisition of Dabao, we have firmly grasped China's middle and low end market.

The fourth way is to promote local public relations. "The foreign party takes advantage of the weaknesses of local governments and enterprises (redundant personnel, lack of capital, technological upgrading, etc.) and the psychology of eager to attract foreign investment, and it helps to improve relations with local governments, and then pressure local enterprises through local government officials to achieve the goal of joint venture," Li explained.

Some experts have suggested that the government should guide the misplacement, especially those officials who are eager to get rid of some of their brand names.

In response, Mr. Hu, President of the Federation of mergers and acquisitions of the Federation of industry and commerce, said in an interview with reporters that China had suffered a lot in the past, but the Chinese have also gained experience and lessons. With the continuous improvement of China's laws and regulations and regulatory mechanisms, China's M & A activities will also become increasingly scientific and mature. For example, in 2008, the anti-monopoly law promulgated by our country shows that our government has become increasingly mature in dealing with foreign capital mergers and acquisitions.

For some of the national brands who are intent on climbing the "foreign relatives", the famous marketing experts cautioned: "I have always disagreed with the fact that enterprises, especially brand trademark ownership, are acquired or joint ventures by foreign investors. The foreign parties tend to be the channel resources of China's market and enterprises, rather than want to run our own brand together with us."

How to deal with the trend of foreign investors' aggressive mergers and acquisitions, Li suggested that "mergers and acquisitions, joint ventures" are purely market behaviors. Whether an enterprise accepts the merger or acquisition must be negotiated by the two sides. For hostile takeovers, we need to keep our eyes open. If an enterprise shows strong desire to seize control and exclude similar products when it comes to mergers and acquisitions, it should be vigilant for the acquiring enterprises.

Consumers blindly worship the ocean

From the floor of the European code to the wardrobe, from the milk powder to the American beef noodle, the craziness of Chinese goods is rooted in the weak mentality of the public blindly worshipping the ocean.

The 26 year old ("pseudonym") first heard about the house ten days ago. "It was bought for the rich. This" fake devil "has nothing to do with me.

When she said this, she fiddled with the IPONE cell phone and faced SONY's computer. She is not interested in or even full of contempt for such a "pseudo foreign devil", but she is willing to get in touch with those real "foreign devils".

For example, she likes Nestle's coffee, Lipton's milk tea, goes to the movie theater only to see "the Hollywood blockbuster", at the end of the year when the bonus time always must buy a bottle of Chanel perfume to reward itself, usually on the busy day, also will go to the wholesale market like Providence and so on selects a "high imitation brand package", this "brand", certainly is the name "the foreign brand".

In the view of this, the life of this kind of foreign goods is too common. {page_break}

"(in), walking into a shopping mall, two or three floors of gold lots and shops are almost all foreign brands of one water." Ms. fan, who has been selling for many years in a shopping mall, told reporters.

"Generally speaking, if this thing is foreign, it will sell better. Some time ago, the television exposure of the card Dan ton, we sell here is OK. Ms. fan further explained, "in order to attract tourists, shopping malls are more willing to choose more mature brands, and the threshold for admission brands is getting higher and higher."

Like Karl Denton, it is also a "made in China" brand. It only has registered trademarks and has no factory production.

An overseas name, a coloured stripe suit with a price of more than 6000 yuan, is priced at 18880 yuan, and it sells well.

No wonder Karl Denton, a salesman of a direct store in the market, said, "the turnover is millions of dollars a year". The general manager of the brand development department of Karl Denton company claims that "as an agent or franchisee, the profits have enough protection."

Since there are "counterfeit foreign goods" brands that can be made full of money in China, let alone those genuine foreign brands, such as Mercedes Benz, brandy and small, are constantly promoting the important role of the Chinese market in its global strategy.

Even if the "foreign brand" has been exposed to quality problems in recent years, the domestic consumers do not care about it, and even continue to praise it.

In April this year, the consumers' Association of the City Council conducted random checks on the casual pants of the major shopping malls in the capital. As a result, many famous foreign brands were found to have serious problems such as the content of the empty label, the formaldehyde content exceeding the standard, and the color fastness being unqualified. The rate of failure is nearly 40%.

Reported that such casual pants, can cause dermatitis and bacterial infections and many other diseases. It involves famous brands such as Spanish brand ZARA, British brand Marlboro and American brand hush.

Among them, ZARA has been detected 7 times in China since August 2009.

In a short span of 21 months, 7 problems were detected, but the expansion of ZARA in China, instead of being affected, showed an accelerating trend. Its parent company Inditex announced in March this year that the number of stores that will cover China's cities will increase from 30 to 42 in 2011, and will go directly into China's huge two or three line market.

"The pursuit of foreign brands is just like the pursuit of foreign doctors in China, or the need to create markets." Brand strategy expert Li Guangdou said.

Kong Qingdong, a professor of Chinese language department, pointed out that one of the reasons why foreign brands are being sought after is that there are too many fake commodities. The chief consultant of LAN Ge Zhi Yang Marketing Consultancy Co., Ltd. also believes that the quality of domestic products is not good enough, and the departments concerned are not in good governance. As a result, consumers' confidence in local brands has been damaged for a long time, giving consumers a bad impression of local brands, and even thinking that foreign products will be better than domestic products.

However, this does not seem to be able to explain why Chinese consumers still admire the "foreign goods" of quality problems.

As early as December 2007, the China Youth Daily Social Survey Center conducted an online survey of 2563 youths. According to the survey, 59.2% of young people believe that most of their neighbors are a little bit of foreigners. About 1505 respondents believe that this worship mentality is mainly reflected in "many people only recognize foreign brands".

Yang Yiyin, director of the Research Institute of the Chinese Academy of Social Sciences and the director of the social psychology research institute, said: "this kind of psychology is actually" because of the stereotype of having something foreign, and without analyzing the aspiration of the earth, it repels everything in China in terms of emotion and behavior. " For example, when many people talk about "ocean" and "outside", they will have advanced, scientific, good, noble and modern stereotypes. This kind of behavior and value orientation is the expression of adoration of foreign affairs.

"Chinese consumers are less aware of brands, and one-sided view that foreign brands are better." Yu Fei, chief consultant of LAN Ge Zhi Yang Marketing Consultancy Co., Ltd. pointed out that this one-sided view and blind worship have allowed many international brands to enjoy "super national treatment" without inspection after entering the Chinese market.