In the future global industrial value chain, the marginal profit of pure manufacturing links will become thinner and thinner, but it cannot support a country to become an economic power. Only "brand management" can "operate". create a strong country.

Brands and their added value

Brands are assets, wealth, and a country’s business card. The core expertise and core capabilities gathered by the brand are a The comprehensive reflection of the competitiveness of domestic industrial clusters is also a symbol of national quality and national economic strength. Brands are intangible assets, and effective management of brands can promote and support the sustainable development of a country and an industry.

So what is a brand? What brands can do and what brands cannot do? We say that the essence of a brand is to create wealth to meet people's psychological and spiritual needs. There are specific rules to follow in the formation of a brand, which is the result of market and consumer recognition. The road to brand management is a step-by-step road. We can neither ignore brand building nor overthrow it in order to achieve "quick brand success". Only when a brand operates in accordance with the objective laws of market development can it show lasting vitality.

What is a brand? I believe that a brand is the memory of consumers. How much consumers remember your brand is the market value of the brand. So how can it be called a brand? After surveying consumers, we came to a rule: among the 20 major categories of product brands, the average number of brands that consumers in each category can remember is 7. , generally no more than 7. This means that if the influence of a brand cannot be among the top 7 in the industry, then it is not a brand in the true sense. If the top 7 brands in the entire market are ranked 1, 2, 3, 4, 5, 6, 7, then the relative value of their profit margins in the market will be ranked in reverse order: 7, 6, 5 , 4, 3, 2, 1, that is, the relative value of the market profit margin of the brand ranked first may be 7 times.

In some cases, brand added value can also be called trademark added value and image added value. Once an ordinary product is associated with a famous brand, its value immediately doubles. Office buildings, residences, home appliances, and even watermelons, vegetables, and fruits are all like this.

Form your own brand culture

Culture can be summed up in a simple sentence as habits, which are the universally conscious concepts and ways of a specific group of people. So culture is an invisible force, an invisible hand. Culture determines people's values ??and controls people's behavior. It can be said that when the system becomes culture, the system is not important. When personality becomes culture, personality is not important either. Once you recognize the characteristics of culture, you will understand its power. Each country's culture is different, so its thinking is also different. Only by understanding the characteristics of thinking in different cultures can we understand why we are what we are today, what we should do in the future, and how we should do it. Different cultural thinking has led to different levels of economic development in various countries. Culture has an important relationship with the prosperity of a country. Growing bigger is the culture of the United States, and there are more than 200 Fortune 500 companies in the United States; Germany has a rigorous culture and strives for excellence, and has become the world's number one in precision manufacturing; Japan, due to its lack of resources and island culture, is very economical, so the things it makes have the lowest cost. , the most small things; French culture is fashionable and romantic, so its perfume is the most recognized by the world, and its fashion industry is also the most developed.

Culture is crucial in the internationalization of a brand. Active and systematic output can eliminate the adverse effects of economic globalization, and can accelerate and assist the internationalization process of enterprises. Therefore, before using functions to meet consumer needs, one must first satisfy their cultural identity. Brand culture has long-term penetrating power. What kind of culture you build, the brand will have the value orientation of this cultural gene. A brand with culture is a brand with a soul, and this brand will have vivid life. Brand Culture determines the life and death of this brand. The fundamental factor in shaping a brand is cultural factors, that is, the cultural tradition and corporate core value orientation contained in the brand. It is the key to determining whether a brand can survive and last.

Three necessary abilities to run a brand

You must have the ability to innovate and create first.

According to the "principle of brand", brand is the memory of consumers, and consumers can only remember the first one but not the second one. The world's highest mountain is known all over the world, but what about the second mountain? Almost no one knows it, but their altitude difference is only 200 meters. Who was the first person in our country to win the Olympic championship? Everyone knows it was Xu Haifeng. Who is the second one? No one remembers him. By the same token, the future world market will not leave any place for second place. Only by being first, constantly innovating and creating first can you gain a foothold in the market. ?Looking for the first resource? is Hengyuanxiang's consistent pursuit. For example, in terms of advertising promotion, Hengyuanxiang was the first company to launch a 5-second advertisement on CCTV, and it has been doing so for 15 years without interruption; in terms of scientific research and production, Hengyuanxiang purchased the world's finest wool; In terms of brand five-sense research, Hengyuanxiang looks for the most authoritative foreign institutions; in terms of sports sponsorship, Hengyuanxiang found the stage of the Olympic Games in 1995. In short, in all aspects related to operating the brand, the first resources must be used. There must be the ability to integrate and amplify tangible and intangible assets, that is, the ability to integrate and amplify tangible and intangible assets. However, most people now regard the tangible assets that constitute materials as their own wealth, such as factories and equipment. In my opinion, these are not wealth, but costs. All material things are costs. So what is wealth? Only when we build intangible assets is wealth in the true sense. Therefore, I urgently hope that more of our companies will invest in building their own real wealth, that is, investing in building their own intangible assets and brand assets. It's forever and it's bound to bring great benefits. When we have established our own intangible assets and have the ability to operate intangible assets, the tangible resources of all parties can be used by us.

Must have the ability to operate and realize capital assets and intellectual assets. Knowledge and intellectual assets are the core capabilities for operating intangible and tangible assets. That is, on the basis of grasping consumer demand trends, we use our wisdom to create the first and form our intangible assets, and then use our wisdom to operate intangible and tangible assets. assets, and gain our profits. At present, not only many companies want to join the Hengyuanxiang consortium, but also companies want to incorporate corporate assets free of charge.

If one day you own the best brand in the world, such as Coca-Cola, do you have the ability to let it continue to be glorious for 100 years? Therefore, the crux of a company's problems may not be the industry, nor the brand. itself, but in its own ability to operate the brand.