1. Current situation of China’s brand development
1. The amount of funds invested by enterprises in brands is generally low. The survey shows that among enterprises’ investment in brands, 21% have no investment and investment is 0- 3% invested 050 million, 18% invested 050-150 million, 3% invested 100-150 million, 18% invested more than 150 million, and 37% of the companies did not have detailed information on their investment in branding. Statistics.
2. The proportion of brand investment in total sales is low. The survey shows that in terms of the proportion of brand investment in sales, companies with an investment ratio of 0-1% account for 18%, and those with an investment ratio of 1-3% Accounting for 15%, 3-5% accounting for 6%.
3. The brand building and brand awareness of enterprises are improving, and the basic platform is relatively complete. The survey shows that enterprises have relatively complete brand promotion departments, and 97% of enterprises have set up specialized brand management and promotion departments. departments, only 3% do not have a brand promotion department, 88% of the companies are in charge of brand work by someone above the vice president of the company, and 12% of the companies have no dedicated person for management.
4. Enterprises’ awareness of intellectual property protection is constantly increasing, but they do not pay enough attention to the protection of independent intellectual property rights. The survey shows that 82% of enterprises have established institutions to safeguard independent intellectual property rights, indicating that enterprises have no awareness of independent intellectual property rights. Currently, 15% of enterprises have not yet been established, and 3% of enterprises have not yet filled in the form.
5. Companies pay more attention to brand strategic planning. Companies are paying more and more attention to brand strategic planning. 82% of the companies surveyed said they have formulated a global brand strategic plan, and 12% of the companies have not yet formulated a global brand strategy. Planning, 6% of companies did not fill it out. 6. Most of the brand positioning of Chinese enterprises are still national brands, which are at a low level and need to be developed. In terms of brand positioning, 32% of enterprises believe that their brands are already international brands, and 65% of enterprises position their brands as national brands. There are also 3% of companies that consider their brands to be regional brands.
7. Different understandings of the key factors in becoming an international brand. Statistics show that 34% of companies believe that the most critical factor in becoming an international brand is "having a complete global brand plan." ", 24% of companies think that it is "products with core competitiveness", 18% of companies think that it is "having a good management team", 15% of companies think that it is "a president with global awareness", and 9 % of companies have not expressed their position.
8. Diversification strategy and brand extension have become the most concerned issues. There are many ways to extend brands. The survey shows that 41% of companies choose the "one brand, multiple products" strategy, and 29% of companies choose the "main and secondary" strategy. Regarding brand strategy, 9% of companies chose the "one product, multiple brands" strategy, and 21% of companies chose other strategies.
9. Advertising is the preferred way for Chinese companies to enhance their corporate brands (1) Advertising includes: newspapers, magazines, radio and television, online media, outdoor advertising and other forms. Many Chinese companies have established their own brands. , the foundation is often laid by advertising. According to surveys, many well-known international brands maintain and enhance their brands every year through charity activities or sponsorships. This shows that Chinese companies are currently doing product brand promotion instead of corporate brand promotion. Many companies are still at a relatively low level of brand awareness. low level. (2) In order to improve brand awareness, companies have done a lot of work. Among the companies surveyed, 82.35% chose advertising, 47.06% chose public welfare activities, 50% chose exhibitions, and 35.30% chose other methods. 2. Problems and analysis of Chinese brands 1. Chinese enterprises generally believe that the international development of brands is necessary, but do not have enough understanding of brands. As the internationalization process further accelerates, Chinese entrepreneurs generally feel that participating in international competition is becoming increasingly fierce. , most entrepreneurs believe that the development of brand internationalization is inevitable, but many entrepreneurs only stay on the surface and superficial understanding.
There is not much research on brand internationalization, especially the lack of brand awareness. Most people think that the greatest success is as long as the product is sold. Branding is a matter for powerful multinational companies and has nothing to do with them. Therefore, many companies lack awareness of brand management and brand strategic planning, which seriously restricts corporate brand building and development. 2. There is a big gap between brand strategic planning and specific brand execution. Through corporate brand surveys, we found that many well-known companies have their own brand strategic plans, but the specific implementation effects are very different from them. We think there are four main reasons: (1) CEO’s Brand awareness remains in the form; (2) Lack of brand professionals; (3) The status of brand leaders is not high; (4) Enterprises pay too much attention to short-term interests and damage the long-term development of the brand. 3. Lack of professional brand talents, and corporate brand managers are in name only. The current lack of professional brand talents in my country is an indisputable fact. Colleges and universities and research institutions are basically blank in cultivating brand professionals. They don’t even have the major of brand management. Many others Although the company has set up a brand department, it is often just a show and a facade. Even the manager of the brand department has become a document writing reports for the company's CEOs. He has no say in brand strategy and development. The manager of the corporate brand department is in name only. . 4. Products with core competitiveness do not have global leadership. Although China is the largest manufacturing country in the world, it is a real brand weak country. First, China does not have a global leadership position in products with core competitiveness, mainly because our companies generally lack awareness of independent innovation and are overly dependent on foreign technology; second, they are unwilling to increase investment in R&D, believing that R&D investment is too risky. If it is large, it may be difficult to recover the cost. Moreover, the cycle is relatively long, and it is difficult to see benefits in a short time. Among the key companies surveyed this time, we found that R&D expenses accounted for only 1.0%-1.5% of annual sales revenue, which is far from the national level of 3%-5%; we lack the capabilities of companies like Microsoft, Samsung, Companies like SONY with competitive products across the country.
3. The gap between Chinese brands and world brands Brand internationalization is the only way for Chinese brands to develop. The gap between Chinese brands and world brands deserves key analysis and attention. 1. Gap in international market share According to statistics from the United Nations Development Program, internationally renowned brands account for less than 3% of global brands, but their market share is as high as 40% and sales exceed 50%. Correspondingly, less than 20% of Chinese companies currently participating in the international market have their own brands, and the export volume of self-owned brands accounts for less than 10% of total exports. Among the 100 most valuable brand companies in the world, The sales of most companies in the international market account for more than 50% of the annual sales. Even some well-known companies in China have overseas sales of less than 1 billion US dollars, which only accounts for about 10% of their sales. . 2. Gap in intellectual property protection According to reports, China has encountered the most anti-dumping complaints, and the industries involved include textiles, home appliances, lighters, etc. In the export industry, in terms of intellectual property rights, there are constant bad news such as trademark registrations and patent infringements. What is the gap between Chinese companies and well-known foreign brand companies in terms of intellectual property rights? The characteristics of internationally renowned enterprises in protecting intellectual property rights: (1) Relying on their own or alliance resource advantages to carry out large-scale technological innovation and obtain as many patents as possible. (2) Based on the internationalization of intellectual property rights, patent management is carried out by combining control and transfer. 3. Patent strategy and business strategy cooperate with each other to serve the market strategic goals of multinational companies. In terms of intellectual property protection, Chinese enterprises have to pay more tuition fees for intellectual property protection due to their weak technical strength, low level of research and development, lack of awareness of intellectual property protection, and lack of corresponding alliance organizations. The direct reflection of intellectual property protection is the value of the brand. A good brand not only needs to be created, but also needs to be carefully protected. The most powerful guarantee is the protection of intellectual property. 3. The gap between brand marketing and brand building. American marketing expert Larry Light once said when analyzing marketing trends in the 21st century: "Marketing in the future will be a war of brands - brands competing for their strengths and weaknesses." compete.
The business community and investors will realize that brand is a company's most valuable asset. This concept is extremely important because it is a vision of how to develop, strengthen, defend and manage the business... Owning a market is much more important than owning a factory. The only way to own the market is to first have a brand with market advantages. "The success factor of an internationally renowned brand is to do a good job in brand marketing and brand building, always keep pace with the times, and maintain a youthful brand. Many Chinese companies believe that they can make a fortune by planning plans and ideas. As long as the advertising is done well, The product sells well, so we pay more attention to short-term sales behavior, while the long-term construction and maintenance of the brand are relatively short-sighted. For example, Melatonin has its uniqueness in advertising or marketing, but when we Apart from hearing "give melatonin as a gift", I really can't see what kind of company or brand he wants to make. In a word, the brand lacks connotation. 4. Countermeasures and suggestions for Chinese brand development 1. Countermeasures and suggestions for the government (1) Establish professional brand talent training institutions. Currently, there are no brand majors in colleges and universities in my country. Many brand talents are derived from within the company or become a monk halfway, even those from overseas returnees and international professional brand companies. Because they do not fully understand the development status and environment of Chinese enterprises, they are often not accustomed to the local environment. The lack of brand talents hinders the pace of the internationalization of Chinese brands. It is recommended to encourage and support higher education institutions from the government's perspective. The school will launch brand professional courses, and at the same time establish a complete training institution, introduce advanced foreign teaching experience and models to jointly run schools to promote the cultivation of Chinese brand talents. (2) Continue to increase support for enterprises to "go out" abroad. We must give full play to it. The role of relevant institutions such as embassies abroad and Chinese groups has been to establish joint entities to introduce the market environment and local culture of countries around the world from time to time every year, so that our companies can learn more about market segments. Domestic organizations should be organized from time to time. Enterprises (especially those that are successful in the international market) introduce successful experiences, organize exchange activities, and organize on-site inspections of foreign markets in the name of the government. Policies should encourage and support powerful enterprises to participate more in international competition. Continue to increase support for enterprises to "go global". Strategically, we must formulate medium- and long-term plans for national brand development and strive to create a number of world-class brands in the next 5-10 years. (3) Formulate laws and regulations to standardize the market environment. It is very important to focus on intellectual property rights to protect a good social and market environment for Chinese companies. If Chinese companies want to create world brands, they must be protected and protected from infringement. In recent years, Chinese companies have been participating in internationalization. During the process, we fell behind in terms of intellectual property rights and suffered a lot of losses. For this reason, we paid a lot of money for tuition. From the national perspective, we must further increase the popularization of intellectual property rights, and first increase efforts to combat infringement in the domestic market environment. Intellectual property behavior, standardize the market environment, and focus on protecting enterprises’ intellectual property rights from infringement; second, cultivate enterprises’ awareness of intellectual property protection and provide enterprises with intellectual property counseling and training; third, introduce successful experiences in international intellectual property , provide reference for Chinese enterprises. (4) Eliminate the government-based review agency and establish a market-oriented model. In a market economy environment, whether the recognition of "brand" is determined by the review agency or market-oriented. To decide? We believe that the quality of a corporate brand is determined by the market and consumers. Therefore, we suggest that a truly fair, fair and open review model should be established based on the market. The government should give full play to its functions of supervising and providing services to enterprises, and cannot act as a referee. The government can provide supervision on product quality, standards, policies, regulations, etc., reward enterprises in terms of bank loans, taxes, and exports, and encourage well-known enterprises. Brand enterprises participate in international competition. (5) The country should establish a "brand emergency" mechanism. Spain's "shoe burning incident" has sounded the alarm for Chinese companies.
In the past, Chinese products became synonymous with street stalls due to low prices and poor quality, and often could only linger in the low-end market. After being baptized by the market in the past few years, Chinese companies have gradually matured. Chinese shoes not only have an absolute advantage in price, but also in the low-end market. Moreover, the quality and style have caught up with or even surpassed their foreign counterparts. This will inevitably cause Chinese shoes to enter the high-end market. With the advantages of style, quality, and price, the local shoe industry will definitely be unable to withstand the impact of Chinese shoes, which will inevitably lead to a sluggish market. This led to the above-mentioned "shoe burning incident". On the surface, it may be caused by the price impact on the local shoemaking industry, but we believe that this is an inevitable product of China's participation in the process of internationalization. The "shoe-burning incident" will never be the first time, nor will it be the last. Market competition may be cruel, but if we have too many "shoe-burning incidents" in the process of internationalization, it will inevitably affect more people. The image of Chinese brands in the international market will ultimately affect the overall image of the entire country in the world. Therefore, from a national perspective, a "brand emergency" mechanism should be established to quickly respond to emergencies and provide effective solutions, thereby maximizing to reduce losses. 2. Countermeasures and suggestions for enterprises (1) Enterprises should establish global brand strategic awareness, and specific operations and planning should be carried out simultaneously. First, enterprise management should establish a strong brand awareness and understand the importance of the enterprise's brand from the perspective of the enterprise's strategic development ideas. , the specific operation cannot be divorced from the original brand strategic plan. Our research found that most companies have a fundamental problem, that is, the things formulated are often out of touch with the actual operation. Many entrepreneurs always talk about brand building when talking about it. We talk about it, but in the actual operation process, it often goes back and forth, back and forth, and takes many detours. In the end, it returns to the starting point from the end point, and brand building and brand planning become empty talk. Therefore, it is recommended that our entrepreneurs carefully understand the brand, understand the brand, build their own brand, and cultivate brand awareness among all employees of the enterprise. (2) Do a good job in brand strategic planning and carefully enter unfamiliar industries. Many companies are faced with the problem of diversification. At present, the competitive advantages between companies in the same industry are not obvious, let alone competition internationally. Even Haier's leading brands in technology research and development do not have global competitive advantages. How to build a diversified brand has become the primary problem that our Chinese enterprises currently solve. Some entrepreneurs believe that if the east is not bright, the west is bright, and this industry is not good. We can also make money in other industries. In just a few years, we have done it in all industries. , but in the end, instead of becoming bigger and stronger, it killed itself. Therefore, it is recommended that Chinese companies, while pursuing a diversification strategy, should consider the high risk factor of entering other industries and whether they have the advantages of operating a brand. (3) Increase R&D investment, improve the company's core competitiveness in product R&D, and establish smooth international sales channels. It is necessary to increase the company's R&D investment, establish core leading products with international competitiveness, and establish smooth sales channels. At present, domestic enterprises generally occupy the domestic market first, carry out preliminary accumulation and accumulation of practical experience, and then OEM for internationally renowned manufacturers when the production scale reaches a certain level, and then look for distributors in the international market. Some sell their own brands and are waiting for the opportunity to fully enter the international market. To some extent, this is a good method, but the disadvantage is that it takes a long time to cultivate international brands. The most important way to expand foreign brands is acquisition. We know that Unilever and Procter & Gamble have many companies around the world. There are hundreds or even thousands of brands. If they all follow the path of most Chinese companies, it will take a long time, and then they will not become the internationally renowned brands they are today. Therefore, establishing smooth sales channels and a reasonable brand operation model is the first step to enter the international market. (4) Strengthen the localized operation and management of enterprises, learn the operating models of international brand companies, and strengthen the localized operation and management concepts of enterprises. Our country has always encouraged enterprises to go global. In recent years, many enterprises in China have indeed gone global, but many enterprises have gone global. The front foot went out and the back foot couldn't keep up. In the final analysis, the local strategy was not done well. In Germany, many Chinese companies have also followed up on investment, but due to improper management, lack of experience, and failure to fully utilize local talents, the companies have lost all their investment.
In terms of localization research, it should be said that Chinese companies are the earliest to come into contact. Tens of billions of dollars of foreign capital enter the Chinese market every year. International companies including Motorola, Nokia and other international companies are implementing localization strategies and operating very successfully. We must Why don’t companies going global learn from other people’s experiences? To put it bluntly, developing abroad requires the courage and courage of entrepreneurs, so that we can use local talents to create miracles for the enterprise. (5) Establish corporate global brand awareness and improve corporate intellectual property protection awareness. For Chinese enterprises to become stronger and bigger, the first condition is to establish global brand awareness and establish a clear brand strategic plan. Enterprises must fully consider the corporate brand when developing. Positioning, so that we can clearly know what kind of company we want to be. While establishing global brand awareness, we must also protect corporate intellectual property rights. Many of our well-known companies’ trademarks have been registered overseas. In order to regain our own trademarks They had to file lawsuits abroad, and some companies even changed their logos due to severe squatting, paying a high price for this. Therefore, it is recommended that more companies pay attention to improving their awareness of intellectual property protection when entering the international market.