Since China joined the World Trade Organization, foreign products have to come in and Chinese products have to go out, all relying on the brand/brand of the product. China has 1.7 million brands, which is about the same number as the United States. , In recent years, a number of world-class companies have emerged in China, but few have truly become international brands. But why do world-famous brands have such great market influence? The final analysis is that the brand has higher value. How to understand brand value Whether a brand has value depends on whether it can bring benefits to the enterprise. Brand value is the most core part of brand management elements and an important symbol that distinguishes a brand from similar competing brands. Understanding brand value requires linking brand value with intangible assets, brand value with brand competitiveness, and brand value with brand equity.
1. Brand value is a priceless intangible asset of an enterprise
Brand assets include: brand name, brand logo, trademark, brand logo and trade name use rights, copyright, authorship, patent rights, Franchise rights, proprietary technology, brand honors, etc.
2. Brand value is an absolute expression of the competitiveness of an enterprise
Whether a brand is valuable or not depends on whether it has market competitiveness. The competitiveness of a brand is reflected in the development of new products. market and the ability to occupy the market. If the relative competitiveness of a brand in the market is measured in the same unit, the brand value will be obtained.
3. Brand value is the core equity that cannot be ignored by an enterprise
Brand equity is divided into financial equity, customer equity and extended equity. It refers to the added value given by the brand to the product for the enterprise, dealer or consumer. They can increase or decrease the value to the enterprise or customer through the product or service.
Determinants of brand value The determination of brand value is a relatively complex issue, including product quality, popularity, customer trust, stability, growth, internationalization capabilities, innovation capabilities, patented technology, etc. wait. However, there are many factors that are unpredictable at the same time. To examine brand value, we must look at the factors that realize brand value. Therefore, brand market share and brand profitability are the two main factors.
1. Main factor: truly competitive
A brand must have both a high market share and excess profitability to be truly competitive. Brand value is the expression of this competitiveness.
2. Independent variable: brand excess profitability (net profit level)
Brand value first depends on the brand’s market share, which is a direct manifestation of the brand’s competitiveness. A brand How much of the industry market can be occupied by various products under the brand and how much sales revenue can be achieved are the basis for the expression of brand value.
3. The basis of reflection: brand market share (sales)
The excess profitability of a brand is the independent variable for the realization of brand value. A brand’s products can only achieve a higher Only the higher selling price and profit of similar products can achieve the brand's excess profitability.
4. Other factors
Other factors that determine brand value include: product quality, popularity, customer trust, stability, growth, internationalization capabilities, innovation capabilities, patents Technology etc.
How Chinese brands can enhance their brand value? Brand value is not an asset, is not tradable, is not the transaction floor price for property rights mergers and acquisitions, and has no legal effect. The main purpose is to enhance the intrinsic nature of brand value, find the best path to improve brand value, and improve the brand's international competitiveness through the accumulation of brand value.
1. Improve the differentiated value of the brand
Brand value is mainly reflected in the competitive advantage of differentiated value. First, it consists of product quality, performance specifications, packaging, design, and style. Differences in working performance, durability, reliability, convenience, etc. brought about by it. Quality difference is the core of brand value difference, and technology is the ultimate determinant of all quality. The second is the added value of the brand brought by services.
2. Expand the market share of brand products
Market share is the basis of brand competitiveness.
The primary goal of modern enterprise management is the growth of the enterprise, and development is the last word. The growth of an enterprise is reflected in the overall value of the enterprise. The tangible assets of the enterprise are basically stable. To make the enterprise bigger is actually to make the enterprise's brand bigger and strive to increase the brand's popularity and market share.
3. Improve the brand’s excess profitability
The brand’s profitability includes factors such as expanding scale and increasing market share, as well as reducing costs and improving profitability, and improving management level. This requires formulating a scientific brand development strategy.
4. Expand the potential value of the brand
The vitality of a brand lies in innovation. The reason why a century-old brand has endured for a long time is to boldly innovate in terms of products and technologies and constantly launch new products. New technologies rejuvenate old famous brands and enhance their competitiveness.
5. Innovation in brand positioning
Brand positioning determines brand characteristics and brand development momentum. Consumer demands and market situations are ever-changing. In order to ensure its own advantages and characteristics, brand positioning must be timely and strategically adjusted as the company's operating conditions change. The connotation and form of the brand must be constantly revised to ensure that the brand is close to the market and consumers.
6. Adopt sub-brand strategy and multi-brand strategy
For Chinese corporate brands to implement multi-brand strategies, in addition to accurate market positioning and understanding of demand differences, the most important thing is "String" various brands together to create the core spirit of the brand and bring consistent consumption experience to users.
7. Adopt sub-brand strategy and multi-brand strategy
Brand value ultimately comes down to users’ purchasing behavior. To improve your brand, you must make it visible to your targets and potential users. Your brand. This requires strong channel support, especially "dense" sales terminals to increase penetration into the regional market.
8. Brands join forces to achieve the ultimate win
International brands are very good at leveraging their strong brand appeal and market advantages in their respective industries to cooperate with leaders in other industries. Join forces with powerful brands to expand your brand image and create more added value.
9. Pay attention to brand protection
Brand is the symbol of the enterprise. To a certain extent, the brand is the market’s recognition of the enterprise, representing the image, quality and market positioning of the enterprise. . In order to protect the future interests of enterprises, it is imperative to obtain greater protection through legal channels.
10. Grasp the brand history, present and future
If you want to build a strong brand and innovate the value of the brand, you must first examine the brand history and current truth, and secondly, you must Seize the opportunity for brand development, and finally the future of the brand. Effectively combine target groups, brand propositions, personality and insights to find a differentiated brand platform that can stimulate creativity.
It is no longer possible for Chinese enterprises to achieve the same rapid growth as in the 1890s. In the next 5 to 10 years, Chinese enterprises will transform from product marketing to brand marketing, and brand internationalization will become the mainstream direction of Chinese enterprise development. With long-term persistence, the international competitiveness of Chinese enterprises will be further strengthened, and the image of Chinese brands and Chinese products will undergo fundamental changes in the international market, providing the world with more high value-added products.