The Road to Brand Power, Hardware Enterprise Brand Marketing Transformation Process

In the 30 years of reform and opening up, China’s economic development has attracted worldwide attention. China's color TVs, washing machines, machine tools, automobiles and other products rank first in the world. Obviously, China is a truly "world factory" and "manufacturer of a big country." Compared with this, China's famous brands are rare and far from the brand's power. Luo Baihui, executive secretary general of the International Die and Hardware & Plastic Industry Suppliers Association pointed out that in the face of the impact of the 21st century economic globalization, Chinese companies must achieve the transition from “Made in China” to “Created in China,” and only through independent innovation to form their own A strong brand can only occupy a place in the fierce market competition and build China into a truly economically powerful country and a powerful brand.

Environmental Analysis of Brand Construction in China

1, the government

Premier Wen Jiabao said: "We must proceed from the strategic height of the national rejuvenation to achieve a prosperous nation and encourage outstanding Chinese companies to strive to create the world's top brands." How can a dollar of brand and cultural investment bring about a return to the enterprise? The answer is 227 times. If enterprises want to gain the initiative in the cruel market competition, they should seize the brand's commanding height.

2, industry

According to the Hurun China Brand List (including “2010 Hurun Brand List” and “2010 Hurun Private Brand List”), real estate, finance, alcohol and tobacco, clothing and home appliance manufacturing industries have produced 65% of the most valuable Chinese brands. There are 21 real estate companies, 18 financial companies, 13 ** companies, 11 apparel companies, 8 wine and home appliance manufacturers, and 6 information service businesses. Manufacturing and some countries’ monopoly industries have paid insufficient attention to brand building. They only stayed at the product level and did not increase their products to brands.

3, enterprises

Chinese entrepreneurs can no longer be rich and happy to eat the leftovers left behind by world brands, and honestly do the OEM business of processing. Qualified leaders must strive to become leaders in the industry, use their dreams to motivate their employees, and share their future with their employees. Therefore, Chinese entrepreneurs need to have a dream and ambition for a brand of 100 years, and they must change from OEM to OBM. The highest level of business management is brand management. Intangible and tangible, with brands driving capital. The brand strategy is that enterprises use the brand as the core competitiveness to obtain differential profit and value, and its essence is to create a differentiated competition strategy.

4, consulting agencies

The reason why American brand development is successful is because it has hundreds of professional brand consulting service organizations. And China has less than 20 brand consulting agencies. Seventy percent of U.S. listed companies undertook brand building. Less than 10% of China's listed companies did brand building. This is the gap.

At present, there are misunderstandings in the internationalization of brands by Chinese companies, which are mainly reflected in the fact that some local governments are eager for quick success and instant benefits, and they are pursuing political achievements. This is not a big problem for companies that are bigger and stronger. The evaluation system is imperfect and unscientific. Absurd to the money to buy awards, money won more awards, money less to take the prize. Consumer brand awareness and trends have not been effectively guided. Blind worship of foreign brands, despise the phenomenon of national brands. Luo Baihui, executive director general of the International Tool & Die & Plastic Industry Suppliers Association, believes that the main reason for these phenomena is the government's request for brand building, but there are no specific implementation measures and support plans. The company's understanding of the brand is superficial and it is only considered that the product advertises and the entrepreneur speaks personally. There are very few real brand enterprises in China. Currently, the top 20 brands are concentrated in the resource-based central enterprises. Many companies with resource accumulation are giants in scale, but in essence they are the dwarfs of the brand. China's brand export capacity is weak, mostly for primary products, and a single product for OEM is currently in existence. Inadequate coordination among various departments has led to inadequate brand protection, counterfeit brands in the market, and difficulty in counterfeiting; it has not focused on the brand, and has broken through the moral bottom line of life.

Chinese Brands Go to Global Hardware Business Marketing Transformation

The key to the lack of competitiveness of “Made in China” hardware products in the international market lies in the lack of industrial brands and innovations. Many “hardcore” companies in the hardware industry are in poor condition. They do not carry out technological innovation and innovation for decades and do not have their own brands as their key factors. . Looking at the hardware market in China, the competition has become fierce, with vicious price wars as the main competitive means, and with lower prices to win customers, there is little brand concentration. In the international market, it is even less competitive and the competitive advantage is being weakened. How can we make China's hardware manufacturing industry bigger and stronger? Improve international competitiveness? International mold and hardware and plastics industry supplier association executive secretary Luo Baihui pointed out that China's hardware industry from a world-manufacturing country to a big brand country a difficult long The road to go, only to identify the bottleneck and breakthrough in the Chinese hardware industry to restrict the development of the brand in order to improve competitiveness. What China's hardware companies want to do is to meet the high threshold of high-end equipment manufacturing industries such as automobiles, home appliances, and shipping industries, implement product upgrades, and come up with excellent products. In other words, if China’s hardware companies must win R&D and innovation in the terminal market, they must establish their own brands.

Some people may think that: Hardware is a relatively low-end industry, we are small businesses, nothing can be innovative, can not do very high-end, very environmentally friendly, it is more difficult to establish a brand. Well, we look at the hardware companies in the Taiwan region. The scale is mostly small, but at present it has become the strongest tool manufacturer. This is why? Luo Baihui analysis believes that the key factor affecting the value of a country’s brand is the overall image of a country’s “industrial brand” and the degree of brand industrialization. No matter how small or small, hardware companies in Taiwan attach great importance to technology investment, and they attach great importance to the brand and quality of the products. Some brand products in the United States, Japan, the European Union and other countries and regions are also strong brands. In the medium and long term, China still has to start domestic demand, especially consumer demand, change the mode of economic growth, and change the growth mode promoted by exports in the past. The production of hardware products in China, from "Made in China" to "Created in China," brand and innovation are the key.

In the field of automotive fasteners in China, due to the lack of independent intellectual property rights and brands, the Chinese market has become a big meal for the world's fastener giants. Today, passenger cars and imported cars account for more than 80% of China's auto consumption market. The well-known brands of these high-end vehicles are assembled on the domestic production line, and more than 60% of the fasteners on the vehicle are imported. It is understood that China's export of ordinary standard parts in the international market only sells 1200 US dollars / ton, while imports of some high-grade fasteners have to 8000-10500 US dollars / ton, a difference of 7-8 times. In the imported car models, foreign investors invest 30%, have about 50% of the shares, but take away 70% of the profits, while Chinese companies can only get 30% of the profits. This is of course related to the fact that the intellectual property rights of these fastener products belong to the foreign party, but there are also some objective reasons that there are indeed certain problems in the stability of our fastener products and manufacturing quality, as well as brand factors. Another example is China's valve industry, Huang Wenxing, president of the Wenzhou City Valve Association, once said: “In the past, the valve of a train was pulled out and sold for 1 million yuan. Now the two valves can sell 1 million yuan. The increase in the content will greatly increase the profits of the company." Therefore, continuously increasing technological innovation and innovation is also an issue that the Chinese hardware industry cannot avoid.

In the aspect of sanitary brand marketing, domestic companies are constantly seeking new and effective results. In addition to advertising, channel network, and terminal sales are still the key, Internet marketing has become a major focus, and some companies may further promote the pace of listing and obtain capital at the level of Progress; At the same time some companies will continue to strengthen the differentiation of brand positioning, such as the division of regional markets, the division of high-end and so on.