The Three Key Reasons For The Failure Of Chinese Brands

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Enterprises believe that brand management is not as fast, simple and "real" as that of OEM. Brand management is heavily invested but not directly profitable. The content that needs to be considered and matched is too much, too complex, too many uncontrollable factors and great risks.

This shows that Chinese entrepreneurs do not understand the importance of brand management from the root: it is related to the life and death of enterprises.

They do not think that brand management is a means to enhance business models.

Because China's abundant labor force has provided inexhaustible resources for the labor-intensive business model of enterprises, the huge Chinese market has provided a broad stage for Chinese enterprises.

With the rapid growth of the domestic market, Chinese manufacturers feel that the quality of their products is good, and that the quality of products can go well. As long as the price is cheap, they can become bigger. There is no need to bother to do brand management that they do not understand, nor are they willing to spend time and energy developing the offshore market and participating in the globalization process.

The result is that Chinese enterprises have been building brands for many years, but they have been very unsatisfactory. Strong brands can not be heard for a long time. Brand management is always on the surface, mainly in the following three aspects:

First, many entrepreneurs and managers in China not only fail to see the business model based on brand management at the top of the industrial chain, but also form the psychology of relying on the business mode of the original low-end industry.

Chinese entrepreneurs are mostly from scratch, and have witnessed the process from scratch. Now they are middle-aged, energetic and proud of their business and business models.

Enterprises from scratch, business models are mostly very junior.

Extensive management, uneven quality of personnel, business development vision is not broad enough, do not know that in their own familiar business models, there are more effective and excellent business models.

Because of the idea of "small wealth and ease of peace" and international

Controlling the competitive strategy of value chain makes Chinese enterprises fail to see the advanced business mode based on brand management at the top of the industrial chain.

Many Chinese entrepreneurs do not understand the brand management and operation, or have serious fears about the pformation of business models based on brand management.

At this time, the learning entrepreneur is the key factor to change and enhance the economic development mode.

But the success of the early stage makes it difficult for Chinese entrepreneurs to learn new business models with open mind.

The most fundamental way for Chinese people to break the global industrial chain arrangement under the old order of the international economy is to establish Chinese brands, establish mature and effective Chinese brand management theories, and establish a global industrial chain system with Chinese brand as the leading factor in the world.

Two, some Chinese entrepreneurs and managers realize the importance of brand management, but they are weak and weak.

There are also some entrepreneurs and managers who have a one-sided understanding of brand management and have a speculative mentality. They just want to make money through brands and make money.

There are essential differences between the two cases.

The latter does not really understand the essence and core of brand management. It may also understand that it is unwilling to do so, because it is time-consuming and laborious.

For example, in the core business district of big cities such as Beijing and Shanghai, there will always be products of domestic brands copied from foreign brands in China's most famous commercial streets, such as Wangfujing, Qianmen and Nanjing road. They have just opened their businesses and have launched large scale electronic screens for demolition, discount and sale, attracting and deceiving uninformed consumers.

This strategy is not a real brand management, but a brand management to deceive consumers, making consumers have a distrust attitude towards brands, especially domestic brands.

Chinese consumers believe that too many people cheat by brand.

This situation has a very bad impact on the society, undermines the domestic fair and effective market environment, and attacks honest and regular brand enterprises.

It makes entrepreneurs who want to carry out brand management doubt the attitude of brand management, and to some extent, cause the situation that Chinese enterprises do not have strong brands.

Both consumers and entrepreneurs are skeptical of brand management.

This is not for the Chinese people to pay attention to or face up to.

Even inside the top management schools in China, some professors believe that marketing, including brand management, is a flicker.

Under such circumstances, it is obvious that it is difficult for Chinese enterprises and entrepreneurs to establish strong Chinese brands.

Three, brand management theory is too rigid and exaggerate, which can not effectively guide practice and bring direct economic benefits to enterprises.

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Research is relatively backward, backward is not the understanding of marketing concept, but the in-depth understanding, interpretation, application and promotion of its underlying causes and operation mechanism.

At present, the theoretical research on brand management is too pseudo academic, many of which are published for publication, and have no practical function in brand management practice.

Theory is seriously divorced from reality, resulting in distrust of brand management theories by entrepreneurs and entrepreneurs.

Only a small number of scholars are able to integrate theory with practice, and do their best to help enterprises in the usual heavy research and teaching tasks.

Therefore, this part is still a short board of domestic brand management research.

The confusion of "made in China"

One of the root causes of Chinese entrepreneurs and managers' distrust of brand management is deviation from the perception of "made in China".

A situation of Chinese enterprises development is that Chinese enterprises and Chinese society are satisfied with the discussion of "made in China" and comparative research with other countries, trying to find solutions, but fail to realize the confusion of "made in China".

Chinese entrepreneurs and managers need to have a clear understanding of "made in China".

When we say "made in Japan" and "made in Korea" and compared with "made in China", the premise of comparison is not equal.

The foundation of "made in Japan" and "made in Korea" is Japan and Korea's local manufacturing based on their own brands. National manufacturing is part of the internationalization strategy of the domestic brands, and ensures the excellent quality and reasonable price of the domestic brand products with the national image, but the premise is "Japanese brand" and "Korean brand".

The Japanese are promoting "made in Japan" internationally, with the aim of promoting Japanese brands such as TOYOTA, Panasonic, SONY and Nintendo, while Koreans are promoting Korean brands such as Samsung, LG and Hyundai.

China's emphasis on "made in China" is foreign brand.

Therefore, the problem discussed in this case is a false proposition, and the essence of the problem is not recognized.

What is more serious is that many of the famous international brands that are proud of the Chinese mainland are not really "made in China", because they are well-known international foundry enterprises outside the mainland.

For example, Apple computers and mobile phones sell well in the world's high-tech high-end products, apparently on the mainland, but the product manufacturer is Foxconn, a famous Taiwan enterprise.

The mainland offers only cheap labor other than brand, design, technology, process and enterprise management.

In particular, manufacturing processes and processes have been refined by international companies to require no labor to take any mental training and accept any complex training. Just remember that screws are screwed three instead of two or four.

International companies are squeezing "made in China" to the lowest and lowest level of the global industrial chain, while China is still complacent.

Chinese entrepreneurs must realize that first of all, we need to establish brand names and scientifically and comprehensively manage brands so as to make "made in China" meaningful.

The confusion of "Chinese consumers' preference for foreign brands"

Another source of distrust of brand management by Chinese entrepreneurs and managers is a biased perception of "Chinese consumers' preference for foreign brands".

Whether in foreign consumers or in domestic consumers, there are serious negative images in many areas of China.

This has seriously affected the formation of Chinese enterprises' brand, and even affected the brand formation of Chinese enterprises in their domestic market.

Chinese entrepreneurs need to have a clear mind and recognize the essence of these negative factors in brand building.

A lot of studies on Chinese consumers' brand preference have come to the conclusion that Chinese consumers prefer foreign brands.

For example, brand preference comparative research does not separate product categories. The result is that the quality and scale of selected Chinese brands in the same product category are significantly lower than those of the selected international brands.

In other words, they are not contrasted under the same conditions.

Conclusion it is natural that consumers choose brands with good quality and reasonable price, which are often international brands.

This is like using Tian Ji's horse race to highlight the advantages of foreign brands.

The essence is that consumers' preferences are based on the rational choice of maximizing functional utility, rather than the choice of domestic and foreign brands.

It is only in the same product category that both the selected Chinese brands and the selected foreign brands are equally well-known and the quality of their products is accurate.

For example, for the brand preference of high-end cigarettes, market sales data show that Chinese consumers have a much higher preference for Chinese cigarette brands than international brands.

This can also be significantly recognized in the spirits market.

So it is one-sided to simply think that Chinese consumers worship foreigners and prefer foreign brands.

We need to see the essence of brand management in Chinese enterprises.

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In the same product category, Chinese consumers prefer Chinese brands under the same quality, style and price.

To be sure, Chinese brands are more competitive in the Chinese market.

The essence of the above research is to confuse the general market competition among brands and brand competition among brands, and to defeat the competition of Chinese brands in terms of quality and service, which is attributed to the brand preference of Chinese consumers.

This is not only a slander for Chinese consumers, but also a misdirection for Chinese entrepreneurs.

Brand competition should be based on quality, service and so on.

Therefore, the key question is whether Chinese enterprises will make their brand products the best and be truly competitive in the market.

Brand is the final winner of competition.

For many enterprises, competition pressure and sustainable development pressure under competition are the biggest driving force of brand.

In the face of the competitive pressure of strong brands, Chinese brands can only face the challenge of strong brands if they only work hard and create products that have the ultimate competitiveness of the market.

The confusion of China's economic environment

The third root of Chinese entrepreneurs and managers' distrust of brand management is to focus on immediate interests only.

Brand management and development require enterprises to have higher intelligence and ability. In the complex economic environment, adhering to the principle of brand development requires balancing short-term interests and long-term interests.

With the rapid development of the domestic market and the temptation of lots of speculation, buying and selling, and the opportunity to encrop on money, enterprises that are able to feel secure in brand management are scarce.

Many famous brands developed in the manufacturing industry are pferring the main business under the temptation of short-term profits of capital and real estate market, ignoring manufacturing enterprises to invest in the embrace of financial capital for creating the foundation of social wealth.

But the total amount of social wealth creation is constant. If many enterprises do not create wealth, but rely on speculation to become rich, then the country's economy will bubble rapidly.

Therefore, it is very important for China to plan and adjust and improve the production mode of Chinese enterprises in 12th Five-Year. It is timely and necessary to improve people's livelihood, introduce labor laws and raise labor wages.

These measures are not only conducive to the development of the domestic demand market, but also help to speed up the formation of the middle class and help to form the real pressure and power needed to develop the brand.

Urgency

Under the influence of the international financial crisis in 2008, international brands accelerated the investment and penetration into the Chinese market, and entered the two or three tier cities and even the rural market in China, and seized the domestic demand market.

At the same time, measures such as improving people's livelihood and protecting the interests of workers have increased the cost of labor in China, redeployed labor resources in China, and accelerated population ageing.

Major economies such as the United States, Europe and Japan face serious crises.

They are exporting inflation to China while their currencies are rapidly devaluing and inflation.

The situation faced by Chinese enterprises is not a simple domestic market and a small and easy situation, but a big pattern of world competition.

There is no way out for China's export-oriented enterprises, which are mainly labor-intensive, without taking the road of independent brand management under such circumstances.

Like COFCO, it is far from enough to establish the entire industrial chain and group brand only in China.

The effective way to combat this complex and serious situation is to establish and develop world-class brand enterprises in China and establish a brand name and whole industry chain system in the world.

Zhu Yan, a Chinese scholar, investigated the current situation of Chinese enterprises in 2009. The six problems that Chinese enterprises have summed up has not been improved.

These six problems are: the pressure of order is prominent, the price of raw materials fluctuates greatly, funds are tight, the cost of human resources continues to rise, R & D investment and product innovation are insufficient, the responsibility for energy saving and environmental protection is aggravated, and the risk control ability is insufficient.

These current situations and weaknesses are unavoidable features and weaknesses of resources and labor intensive low-end manufacturing industries.

Zhu Yan proposed six solutions from OEM to independent brand development.

The other five paths are: from export to domestic sales, from low end to high end, from manufacturing to service, integration of industrial chain resources, from extensive operation to meticulous management.

In fact, the effective implementation of the other five must be based on the development of independent brands.

Because export orders are foreign brand orders, and domestic sales need to be self built and brand led distribution and marketing system; from low end to high end, brand protection is needed to enter the high-end manufacturing industry; from manufacturing to service pformation, it is more necessary to win the trust of customers and market by brand.

The integration of industrial chain resources ultimately needs the brand to be reflected. The value created by extensive management to fine management is also needed to accumulate continuously.

Therefore, the core issue of these six paths is brand management, which should be mentioned in the central position. The other five paths are brand management specific measures and path plans.

It can be said that brand management is a prerequisite for the pformation and upgrading of enterprises.

Correct brand concept

Chinese entrepreneurs and managers must come up with the right brand concept in order to get out of the state of never trusting brand management.

Only in this way can the brand building and brand management of Chinese enterprises have a correct start.

In view of the four serious problems that may exist at present, Chinese entrepreneurs need to establish four correct brand concepts.

One problem is brand management. There is a lack of motivation for brand management and operation.

A correct idea: a brand is the carrier of unlimited wealth.

An investigation of the richest people in the world shows that the most common feature of all the richest people is that they all own one or more brands.

For example, the richest person in the United States owns WAL-MART, France's richest man owns Louis Weedon, Japan's richest man owns UNIQLO, Spain's richest man owns Zara, and China's richest man has Wahaha.

These obvious facts illustrate a simple concept of brand Wealth: brand is the prerequisite for creating unlimited wealth.

The wealth created by no brand is always limited, pient and uncertain, such as manufacturing and financial speculation.

Brand is unlimited, long-term and stable, such as mass consumer brands and luxury brands.

Brand is the carrier of unlimited long-term stable wealth.

In the world, where is there a better tool for wealth gathering than brands? Therefore, the most direct means to create unlimited wealth is to build a strong world brand.

If Wahaha can take the international development strategy and let Wahaha go into the family and life of consumers all over the world, then Mr. Zong Qinghou, chairman of wow ha ha, must be the richest man in the world.

Question two, we have doubts about brand management. We do not understand the true relationship between brand and business and market.

Right idea two brand is sailing on sailboats.

What is the brand? Many people feel that the brand is far from being clear.

Here is an image metaphor, which is the concept of brand sail.

An enterprise and a product are like a big ship. The sea is a market. A brand is like a sail on a large ship. It can speed up the sailing of a large ship in the sea. It can fight against the wind and waves, brave the wind and waves, and march forward bravely.

The function of the sail is complementary to that of the hull. The excellent hull is the foundation, and the sail is the power to drive the hull.

Sailing without sail is meaningless and unable to navigate.

The hull without sail is clumsy and slow. It can only drive the hull by boat boatmen, unable to sail in the market and fight against the wind and waves in the market.

Excellent enterprises and competitive products are the foundation and the hull; brand is the driving force that drives the competition between enterprises and products in the market, and is the sails.

The stronger the hull, the better the sail can be, and the farther away it will be.

The farther and farther the ship is sailing, the larger and stronger the hull will be. The larger the sail can be, the farther it will sail.

The bigger the brand is, the stronger the market will enter into the virtuous circle.

Question three, doubts about brand management, and lack of correct understanding of the relationship between brand management and human society in terms of values.

Correct concept three brand is the crystallization of human wisdom.

The main difference between human beings and animals is that human beings are creative.

The results of creativity can be divided into material cultural heritage and spiritual and cultural heritage.

Brand is the crystallization of human wisdom and the combination of material culture and spiritual culture.

The material culture of a brand is embodied by the products created. The spirit culture of a brand is the soul that the brand owner gives the brand.

From the point of view of human intelligence crystallization, brand is not only a phenomenon in the commercial field, but also a manifestation of the progress of human society.

American brands such as McDonald's, Coca-Cola, WAL-MART and other enterprises have opened a store to all parts of the world, creating enormous material wealth for the United States. At the same time, the products and brands of these enterprises are carrying the spirit of the people of these countries, that is, the spirit of popular culture and the American dream.

French brand Louis Weedon, as the most successful representative of luxury brands in the world, is also opening the store to every international metropolis that has gathered the crystallization of human culture in the world. It not only brings the products of excellence to the world consumers, but also brings the spirit of French culture, that is, the noble culture and artisan spirit of Europe.

Where are Chinese enterprises and brands? Haier is not a world famous brand because its products have not entered the ordinary people's homes in the world.

Lenovo is also not strong enough to become a world famous brand. After the acquisition of Think Pad, the market share of each country has not increased. The overall growth of the brand is due to the promotion of the acquisition to the domestic market, and its main market is China.

There are only one world brand that really comes from China, that is, Tsingtao Brewery.

No matter where you go to a Chinese restaurant in any corner of the world, you can definitely see this green bottle from China.

Thanks to the great charm and vitality of Chinese food culture left behind by the overseas Chinese and the Chinese history.

China has not yet been able to call out the same spirit of slogan that "any car can go to the mountain front, there must be a TOYOTA".

Only entrepreneurs who succeed in China are not successful; they can be called "real success" if they become successful entrepreneurs in the world market.

This success requires brand management as the precondition.