Wto Foreign Brands Come Back Why Should Local Brands
From December 11, 2004 by China’s WTO commitment to all open up industry, China will enter a “WTO transitional period.” Post-WTO era means that more and more China trade friction, increased competition and non-tariff protection measures be removed altogether. In accordance with our government’s commitment to the transitional period, the intensity and extent of market liberalization will significantly increase over the previous 3 years. This indicates that China’s local enterprises and multinational corporations will be more intense battle.
“In the just past 2004, we have been able to very clearly see the market situation has reversed. In many industries, the local brands have passed their prime, multinational Chinese companies are aggressively to recover lost ground.” 1 in 2005 month at the “2004 Brand Survey of China’s most competitive conference and the Theme Forum”, an expert on many domestic brands last year, the downward trend shown by showing unprecedented concern.
2004: International brand overall than domestic brands
Survey data for this brand new generation of market monitoring bodies to support Vice President Rong a deeper feeling, that our choices for consumers to show a significant change, and this change is manifested in the market: both in consumer durable goods with high added value, or the scale of domestic brands has become the field of fast moving consumer goods, whether paid classes or the general public, international brand has begun to go beyond domestic brands.
Rong believes that the deeper causes of the phenomenon of the following consumption structure in China, great changes occurred in consumer culture. Last year China’s per capita GDP has more than 1000 U.S. dollars, the community has a large number of consumer goods, consumer spending attitudes are changing.
Generation market monitoring bodies detected, the concept of consumer spending in China occurred in the reform, the use of the product from the previous attitude of “use + maintenance” into the current “Use + discarded.” Consumers to buy domestic brands will continue to decline in, even in the face of more high prices, they also like to buy foreign brands. The increase in the number of consumer goods and brands, also makes it difficult for consumers to know their needs, they increasingly focus on product packaging, but rather a promotion of products on the shopping malls are there purchasing power, they are willing to spend money to buy high-quality products.
Is precisely these changes on consumers, consumer-centered marketing orientation in the sharp rise. Liu Rong introduction, marketing, international brands in response to the transformation of the consumption structure, the structure of culture on consumer interpretation of consumer research, consumer awareness of the future are no doubt better than the domestic brands and leading, therefore better able to respond to changes in consumer and consumer trends. This is the last year, lost its local brands, multinational large-scale recovery of lost causes.
Reflections on “going out”
First needed to train their internal strength of Chinese enterprises
2004, we went to see a large number of domestic enterprises to develop overseas, but we see very little success, on the contrary, foreign brands, “counterattack” has become menacing, can be said that in 2004 they succeeded in re-occupied the Chinese market. Faced with this situation, our domestic brands should do about it? After the meeting, National Bureau of Economic Monitoring Center director Zhang Zhongliang accepted an exclusive interview.
Zhang Zhongliang that the first Chinese Chinese companies to the heart to recover. In 2004, the number of Chinese enterprises in the strength of the case does not have the rush to “sea.” Zhang Zhongliang appears in the media for Chinese enterprises “going out” too much coverage, there is “fanning the flames” of the suspect. Large area in the impetuous wind of the prevailing circumstances, Zhang Zhongliang warning to domestic enterprises to “go out”, have come back.
We should see a number of Chinese brands today have been able to develop, behind two reasons. One is that many Chinese companies at the development stage is the situation faced by the domestic market, demand exceeds supply, which many Chinese companies even if there were some deficiencies, but there are still opportunities to grow; Another advantage of China’s largest home – cheap workforce.
Therefore, the Chinese enterprises to “go out”, we must re-weigh their own advantage? Zhang Zhongliang that, compared with foreign enterprises, small core technology at our disposal, and we at home or effective marketing strategy does not necessarily apply abroad. The overseas development of domestic enterprises if it will lose the advantage of cheap domestic labor, so we need to practice at home will be hard-body bone.
This, Zhang Zhongliang mentioned to reporters focused on two points, first, branding second is technological innovation. Present in the minds of Chinese consumers, the status of the domestic brands are still not as good as an international brand. In particular, many consumer products in today’s market situation is less than the supply demand situation, how to create and enhance brand has become a new topic of domestic enterprises.
Innovation and cooperation in remodeling local brands
In 2005 or even longer period of time, local brands in the end we should do to regain lost ground, and then successfully fight back? Zhang Zhongliang to reporters about his arguments.
Should first achieve individual brand. Currently, our product homogeneity is serious, imitative behavior among enterprises everywhere. In today’s era of survival of such a differentiation, it is necessary to promote the brand of personalization.
The second is to improve the cultural connotation. In consumer products, consumer spending has been shifted from the functional spirit of today’s consumption, domestic Chinese companies need to do is to give the brand to more cultural connotation. In this regard, Zhang Zhongliang that our domestic and foreign brands still a long way. For example, the same brand of sports shoes, adidas represents vitality, and we thought of our national brand, perhaps only one word: cheap. Zhang Zhongliang said: “We not only sell products to consumers at home, but also to shop to their hearts.”
Third is technological innovation. Zhang Zhongliang that has long been used to quick success of our business development model, no one wants a long-term attention to technological innovation and breakthrough. Zhang Zhongliang explained here two aspects of innovation, product innovation first, second, the process of innovation. The enterprises in different development periods, the focus should be different. If there is no innovation, that our product is just another technology stack. However, due to institutional constraints and other reasons, “we also have a number of Chinese companies willing to give out when
I am China Quality Lighting writer, reports some information about hydraulic car jack , aircraft jacks.
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