On August 10th, the Ministry of Commerce’s Brand Journey came to Shanxi, and on August 16th, it left Yuncheng and moved to Shaanxi. In just seven days, a whirlwind of brand creation took place in Shanxi.
Rome was not built in a day, and the same is true for brand creation. As Professor Wei Hulin of Shanxi University of Finance and Economics said, a brand cannot become famous overnight. Building a brand is a long-term process.
Although Shanxi currently has a large number of local brands and enterprises, the number of Chinese famous brand products is relatively small, with only 9 and 10 well-known Chinese trademarks. China's well-known trademarks ranked 20th in the country in 2005.
A The glory of Shanxi brands is no longer
Speaking of Shanxi brands, we have to talk about the glorious history of Shanxi brands. From the perspective of historical development and cultural accumulation, Shanxi is a region with many time-honored brands. During the Ming and Qing Dynasties, there were 43 time-honored brands in Shanxi such as Rishengchang, Duyichu, Chuanzi Tea House, Guanghengxin, and Dadetong. At that time, there were only 51 time-honored brands in the country. These time-honored enterprises are not only famous across the country, but also in Europe and Asia. Their brand intangible assets have created substantial tangible asset value.
Rishengchang has been prospering for more than 100 years, and the maximum amount of silver exchange reached more than 100 million taels. Its business scope not only covers more than 20 provinces and autonomous regions across the country, but also spans Europe and Asia. It is known as "China's No. 1 Bank". A business name", and the emperor awarded it the title of "Huitong Tianxia". From a historical perspective, relative business volume and integrity, the value of Rishengchang's intangible assets would not be less than 800 million taels of silver, which could compete with the world's largest commercial companies at the time. Relatively speaking, its brand effect is comparable to that of Coca-Cola. Shanxi's famous brands in China and influencing the world include "Sichuan Zi" brand tea.
In the mid-1990s, a number of nationally renowned brands and nationally renowned brands emerged in Shanxi (rated as gold medals, silver medals, etc. by national ministries and commissions).
The most influential ones are Haitang, which precedes Haier, and occupies about 50% of the market share in Beijing; Spring Bamboo Shoots, which precedes Changhong, is sold in 13 provinces and cities across the country; its sales volume ranks first in the same industry in the country. The business efficiency of Si Fangfang ranks third in the country, second only to Tongfeng cooked meat and Xinghuacun, Laochen vinegar, Guilingji, Dingkundan, Pingyao beef, Jingwei spinning machine, etc. in Chundu and Shuanghui.
The famous brands in the province include Huajie, Daguang, Sanmeiyuan, Kangmei, Rainbow Nine Girls, Universal Bicycle, etc., but most of these brands have disappeared.
At present, Taiyuan has the largest number of famous brand companies in our province, with 3 Chinese famous brand products such as vinegar and oil film bearings for rolling mills, 9 Shanxi iconic famous brand products, 34 Shanxi famous brand products, and various famous brands. The total number ranks first in the province. Yuncheng currently has 2 Chinese famous brand products of washing powder; 4 iconic famous brand products of Shanxi Province; and 17 famous brands of Shanxi Province. There are 42 products of 40 companies in Jinzhong City that have been rated as Shanxi Province's iconic famous brand products and Shanxi famous brand products. Linfen City has 6 Shanxi iconic brand-name products and 14 Shanxi famous-brand products. Changzhi City has 2 Chinese famous brand products, Orite and nitric acid phosphate fertilizer, 5 Shanxi iconic famous brand products, and 20 Shanxi famous brand products. Jincheng City has 3 Shanxi iconic brand-name products and 16 Shanxi famous-brand products. Datong City has 2 iconic Shanxi brand-name products and 20 Shanxi famous-brand products. Xinzhou City has two Chinese famous brand milk products.
Relevant data shows that Guangdong is currently the province with the most famous brand products in China, reaching 165 products, far exceeding the number of our province.
B I only know mature vinegar but don’t know the brand
Shanxi mature vinegar has a long history and is famous all over the world for its unique craftsmanship and sour, fragrant, mild and sweet flavor. The three major vinegar industry groups in our province, Shanxi Lao Mature Vinegar Group, Qingxu Shanxi Mature Vinegar Group, and Yuci Siyanjing Mature Vinegar Group, have not taken advantage of this advantage to become strong enterprises. Compared with "Hengshun", the profit and tax of the latter are several times that of the three major vinegar groups in our province.
Among the four traditional Chinese famous vinegars, rice vinegar is not among them. However, in recent years, Beijing Longmen rice vinegar and Shijiazhuang Zhenji rice vinegar have suddenly emerged. The price of a bottle of Zhenji rice vinegar on the market is almost two or three times that of Shanxi vinegar. times.
The reason for this situation is that the outside world only knows that Shanxi has mature vinegar, but they don’t know what brand it is. Professor Wei Hulin believes that most people in our province currently have little awareness of famous brands and lack sufficient understanding of making famous brand products bigger and stronger.
Looking at the well-known brands that have risen rapidly in recent years, there are very few that do not rely on advertising to succeed. Inner Mongolia Yili Group's rapid rise through advertising on CCTV is a typical example. At the same time, the Shanxi brand advertisements that can be seen in powerful media are nothing more than a few products such as Fenjiu and Qiqiang brand washing powder. Wei Hulin believes that Shanxi enterprises have backward marketing concepts and invest too little in advertising.
According to the survey, among the 46 Shanxi brands in Taiyuan City, about 50% have sales limited to the provincial market, and more than 90% of the products have a domestic market share of less than 5%. . Due to the poor brand effect, our province's brands are unable to carry out asset expansion, asset reorganization and resource reallocation. Our province's products are relatively concentrated in energy and metallurgy, with extensive technology, slow product upgrading, insufficient deep processing of agricultural products, and little effort in research and development of new products. Nowadays, the asset-liability ratio of famous brand enterprises is high, reaching an average of more than 67%. Their profits are not enough to offset the debts of the same period. In addition, insufficient funds and poor turnover restrict scale expansion.
Professor Rong Heping of Shanxi University pointed out that the underlying reason for the lack of famous brands of famous specialties in Shanxi is the lack of human resources and systems. The supporting force behind famous brands is human capital, and Shanxi lacks talents and entrepreneurs to support famous brands. The environment for creating famous brands is not good, and the root cause is the lack of mechanisms. In addition, in the process of creating famous brands, corporate systems are also very important. Shanxi enterprises have not yet fully established a modern enterprise system, and have not formed a diversified shareholding and sound corporate governance structure. Therefore, for specific enterprises, in order to create a brand, firstly, they must vigorously promote enterprise system innovation and lay an institutional foundation for brands and famous brands; secondly, they must establish and improve corporate governance institutions based on human capital; thirdly, they must implement industrial clustering path to establish strategic alliances.
C The creation of new brands is gradually gaining popularity
Shanxi heavy industry has a complete range of categories and a solid industrial foundation. There are more than 12,000 large and medium-sized enterprises in the province, with good foundation and conditions for heavy machinery, mining machinery, precision casting, agricultural locomotives and parts, auto parts production, marine engines, electronic products, non-ferrous metals, and building materials industries. In recent years, a series of new brands have been created in the equipment manufacturing industry, and some of these brands have begun to compete with large international companies.
Gao Zhijun, chairman of Taizhong Group, said that as my country's largest large crane production base, Taizhong's "TZ" brand cranes and oil film bearings have become recognized as high-quality brands in the industry. It is understood that Taizhong once cooperated with the American company Morgan to produce oil film bearings. Morgan's oil film bearing products used to sell for 200,000 yuan per ton. After Taizhong intervened, the market price of American Morgan products was only 60,000 yuan per ton. Due to corporate development strategy, Taizhong separated from the American company Morgan after 15 years of cooperation. Last year, the number of Taizhong's oil film bearing products exceeded that of Morgan, making it Morgan's strongest industry rival. The same is true for cooperating with foreign companies to produce excavators. Foreign companies have always been unwilling to fully share key technologies. In 2004, Taizhong separated from foreign companies and produced excavators on its own. The brand represents quality. "With people and technology, Shanxi brands have confidence." Gao Zhijun said.
In 2005, Taigang's stainless steel output reached 930,000 tons, and its exports were 90,000 tons. In the first half of this year, Taigang achieved sales of 20.1 billion yuan, and its annual exports are expected to reach 200,000 tons. TISCO General Manager Li Xiaobo said that 5 years ago, TISCO products could hardly enter the international market. The main reason was poor quality. Without quality, there would be no brand. After several years of hard work, its stainless steel products not only occupy a place in key domestic projects, but are also exported to developed countries and regions such as Europe and the United States. TISCO now has more than 700 core technologies, mainly stainless steel manufacturing, of which nearly 100 core technologies are at the internationally advanced level.
The seven advantageous industries of Shanxi’s “Eleventh Five-Year Plan” identified by the Provincial Party Committee and the Provincial Government include equipment manufacturing, coal chemical industry, metal materials and products industries based on stainless steel and aluminum-magnesium alloys, specialty agriculture, Cultural industry, tourism industry, etc. Wei Hulin believes that Shanxi not only has unique resource advantages, but also industrial advantages, and should create more well-known brands.
D Shanxi’s brand is about to take off
“Shanxi is currently on the eve of its economic take-off, with business opportunities everywhere. This is an era that requires big entrepreneurs and well-known companies.” Wei Hulin It is believed that Shanxi's economic development provides opportunities for Shanxi brands to take off. Wei Hulin believes that building a brand is a long-term process. Wei Hulin said: “Everyone thinks Microsoft is a new company, but what needs to be told is that it was founded in 1975, so it has been 31 years.
"Creating a brand is not only the business of the company itself, but the government's role is equally critical. Wei Hulin said that building a well-known brand requires a good social development environment based on the company's own efforts. This is something that only the government can do, such as: Change the institutional environment and reduce government costs; create a fair environment, protect famous brands, and reduce the market operation costs of enterprises; strengthen the construction of government information and reduce enterprise transaction costs.
Shanxi's "Eleventh Five-Year Plan" outline states: " Efforts will be made to implement the famous brand strategy and focus on cultivating a number of Chinese famous brands and well-known trademarks. "This is the first time that the issue of famous brand strategy has been raised in Shanxi's previous "Five-Year Plan". During the "Eleventh Five-Year Plan" period, Shanxi will create 30 Chinese famous brand products and 20 Chinese well-known trademarks.
Editor Notes
When it comes to brands, we Shanxi people can count them on our fingers: Fenjiu, Haitang, Qiqiang, Spring Bamboo Shoots, Huajie, Universal Bicycle... But if you think about it again, these are familiar brands. How many years does it take for a name to exist today?
How many years does it take to build a brand? This is a concept without specific numbers. Some companies last for hundreds of years, while others appear to be short-lived. Brilliant. How much bitterness, how much joy, and how many topics make people think about brands and stories about brands?
The "Brand Journey" has gone through Shanxi like a whirlwind, but it has left us with But it is a long-term thinking about Shanxi brand.