Chapter 16 Marketing Archives 2 The Evolutionary Path of Local Brands

From the perspective of historical development, the development of a brand is closely linked to the changes in the social and economic environment.In the era of planned economy, there is almost no competition in the market, and brands lack the soil for survival. After the reform and opening up in 1979, foreign brands seized the Chinese market with their strong comprehensive strength. At first, local companies did not have a clear understanding of the value of brands. With the start of the market economy, competition has intensified, and more and more companies have begun to pay attention to brands.The real rise of local brands came after the 1990s. Over the past 20 years, the development of Chinese local brands can be roughly divided into four stages: the stage of brand enlightenment, the stage of self-created brands, the stage of brand competition and the stage of brand internationalization.

Around the 1980s, brand was still a new vocabulary for local companies, and brand awareness was very weak, mainly manifested in: ·Mergered by foreign capital In May 1980, the first Sino-foreign joint venture was born in my country.Since then, foreign direct investment in China has continued. A large number of local Chinese brands bought shares with the right to use their trademarks as a price. As a result, after the joint venture, the promotion was not effective or they were "left in the cold palace", and they were gradually forgotten by the market. ·OEM production During this period, many Chinese enterprises were keen to carry out the "three-to-one" business, earning a living through OEM (OCM) for foreign brands, and could only obtain a meager processing fee.

After being tempered by market competition, local companies that have frequently lost in competition with foreign brands are increasingly feeling the power of their brands. Enterprises generally realize that only by creating their own brands can they compete with strong foreign competitors.As a result, there has been an upsurge of striving for famous brands in China. ·CIS heat In 1991, Guangdong Helios Company took the lead in exploring a professional CIS (corporate image identification system) design to create a good corporate image.Immediately, the CIS fever in various places surged. Today, Shanshan, Konka, Xinfei and other enterprises have introduced CIS one after another, and have made useful attempts.

·The rise of various brand activities In 1991, China held the first "China Famous Trademark" appraisal activity decided by consumers' votes, and 14 national well-known trademarks were selected. In 1992, the Ministry of Domestic Trade, the State Economic and Trade Commission, and the Ministry of Electronics Industry jointly held the "National Best-selling Domestic Commodities Fair" and selected the "Golden Bridge Award", which has been held annually since then. In 1993, Beijing founded the "China Famous Brand" magazine, which is the first professional magazine on brand issues in my country. In September 1994, the China Trademark Association was established, followed by the establishment of local trademark associations all over the country. In November 1994, my country's first national famous brand conference was held in Chengdu, and the meeting passed the "Chengdu Declaration" to promote the development strategy of famous brands.Since 1995, Beijing Famous Brand Assets Appraisal Co., Ltd. has released the annual research report on the most valuable brands, and it has been 7 years.

·Governments around the world propose brand strategies and famous brand projects Since the 1990s, Zhejiang, Shandong, Sichuan, Jilin, Shanxi, Beijing, Shanghai and other places have respectively formulated and implemented famous brand strategies. ·Reconstruction of time-honored brands China's time-honored brands have a long history and a good reputation. However, due to outdated management methods and backward management, these time-honored brands were once eclipsed in the tide of the market economy. After the 1990s, operators of time-honored brands changed their concepts and used modern marketing management theory to rebuild time-honored brands and restore their former style.For example, "Quanjude" has created a strong modern catering service brand with rich marketing strategies.

After the mid-1990s, China's economy accelerated, and "local brands" and "foreign brands" could be seen everywhere. Market competition intensified, and fierce price wars, advertising wars, sales promotion wars, and service wars broke out successively.Many companies understand that only by establishing and maintaining a strong brand can a company remain invincible in the fierce competition.But there are plenty of myths in the battle of brands. ·The battle of "Biao Wang" Since 1995, CCTV began to conduct public bidding for prime advertising time.Confucian Mansion Banquet, Qin Chi, Aiduo, etc. have become several generations of "bidding kings" respectively, and all of them produced huge benefits in the year of winning the bid.Looking back at the era of "Biaowang" today, the past "Biaowang" has fallen one after another, and its ups and downs are worth reflecting on.However, the intensity of brand competition and the enthusiasm of enterprises for brand investment at that time were still impressive.

· Service War More and more companies have realized that price, advertisement, promotion, and quality alone are not enough to attract consumers, and only by providing more value-added services can the brand win in the competition.Therefore, many enterprises have shifted their focus of competition to services, such as Haier's "Star Service", Royalstar's "Red Carpet Service" and so on. At the end of the 1990s, a number of excellent local brands launched their globalization strategies one after another, went abroad and entered the international market.They set up R&D, production, and marketing organizations overseas, recruit international talents, and aspire to become a global brand.After several years of hard work, Haier and other brands have initially established a certain reputation in the international market.