Ai Feng: Chinese Brand Needs A Revolution.

Brand revolution is imperative

A market research agency in the United States provided such data: Apple Corp sells iPad computers at a cost of $499 per unit and costs $260, while Foxconn charges $11.2 for its assembly, accounting for only 4% of its cost and a little more than 2% of its price.

The Foxconn case profoundly reflects the national conditions of China's "big manufacturing nation and small brand country", and the "smile curve" of the international economy is a "smile curve" for Chinese people.

Made in China is only "low-end manufacturing", and there is no internationally recognized world famous brand.

More than 90% of China's export products are OEM, and less than 10% of the independent brands have no popularity and lack of added value.

In the export products, wholly foreign-owned enterprises and joint ventures accounted for 55% of the total output and 75% of the profits.

Will the Chinese always be a cheap wage earner in the world? No, they can't.

So we need a brand revolution.

The survey found that the domestic market turned out to be a "platoon" market -- many Chinese despised their own brands.

In some of the high-end department stores in Beijing, there are no domestic brands.

But most of these brands are just foreign brands in general, and even the "fake foreign devil" registered by the Chinese in foreign countries, and most of these brands are manufactured in China.

Over the years, we have always advocated that China's own brands enter the Chinese shopping malls, but so far there has been little effect.

The mall pushes "responsibility" to consumers. They say consumers are willing to pay high prices for foreign brands, while selling foreign brands have high profits.

A certain district in Shanghai has launched the so-called "international brand Street". Only the foreign brands can enter, and China's own brands are all rejected.

Should this phenomenon of "despise oneself" should be changed?

So we need a brand revolution.

The core issue of China's economy is to change the way of growth, in essence, to create the highest economic value with the least material resources.

In developed countries, the amount of material resources consumed is low, and the added value of the created brand is very high.

The cost of a Mercedes Benz is up to more than ten thousand yuan, but it costs you about 1000000 yuan.

A LV bag, material costs up to one hundred or two hundred yuan, to sell you thousands of yuan.

In turn, the products we manufacture are priced at 1/5, 1/10 and 1/15 of the price of foreign distributors.

Can the Chinese really only be able to spend money on resources, pollution, effort and worthless work for ever? No.

So we need a brand revolution.

What is the brand revolution?

Historically, Chinese brands bear two burdens, one of which is the old burden left behind by backward China.

Many foreigners still instinctively cast the shadow of old China onto the Chinese brand.

One is the new burden caused by fake and inferior once rampant after the reform and opening up.

Some foreigners are "once bitten by a snake and afraid of the rope for ten years". It is difficult to change this stereotype.

From the reality, the general concept of "China" actually contains a great contrast between advantages and disadvantages.

While making significant progress in China's manufacturing, Chinese quality and Chinese brand in the past 30 years, there are still a lot of negative problems.

"A rat's dung breaks a pot of soup", "good things don't go out, bad things go a long way," which makes those excellent Chinese brands unable to stand alone.

The brand revolution is not to overthrow or exclude foreign brands, not to blame consumers for not being patriotic, but to change their own lives, change themselves and improve themselves.

First, the brand revolution must go out of three misconceptions.

The first mistake: heavy

The second mistake: one-sided understanding of "brand without borders".

When discussing Coca-Cola's acquisition of Huiyuan, some people say that the brand has no borders, and Coca-Cola is rich in capital. After purchasing Huiyuan, it can provide more and better drinks for our Chinese consumers. Why not?

Feng Jun, President of Huaqi consulting company, said many times that patriot cameras sold for less than 1000 yuan in the Chinese market, and that the Japanese SONY could not sell more than 2000 yuan with the same product.

Independent brand is the right of speech, initiative and pricing power of Chinese people.

The reason why the Olympic Games become more and more popular depends on two words: "sports without borders" enables the Olympic Games to organize the world's largest and the highest level of competition in the world, and the "medal ownership" is the source of the strong driving force of the Olympic Games.

To bring these two sentences together, international brand competition is "market without borders and brand ownership".

The third mistake: brand is just for making money.

Some people think that marketing is the only way to make money.

Yes, but not in place.

The brand has macro and micro combination: the independent brand can not only promote the development of the enterprise, but also promote the economic level of the whole country, which is its economy.

The basic point of brand culture, honesty, innovation and responsibility, is also the basic point of social culture in the market economy. This is its cultural nature.

The status of brands and famous brands represents the national quality of this country and the soft and hard power of this country, which is its social character.

How do we do this?

This brand revolution requires three hearts: determination, confidence and patience.

"Determination" is a kind of awakening; "confidence" is a kind of courage; "patience" is a kind of will.

It needs the combination and coordination of the three main bodies of the government, enterprises and intermediary organizations.

Special attention should be paid to the role of intermediary organizations.

From the perspective of macro and micro integration, economic and cultural integration, social and political integration, and domestic and international integration, the most concentrated expression is the brand with the most recognised international point of view.

The rise of Chinese brands, including national brand, regional brand, industrial brand, enterprise brand and product brand, is the most important lever and the most important task and the most distinctive symbol of China's development in the next 30 years.

In the next 30 years, if there are 10~20 independent brands in China, it will become the world.

Put forward:

"Sports without borders" enables the Olympic Games to organize the world's largest and the highest level of competition in the world, and the "medal ownership" is the source of the strong driving force of the Olympic Games.

To bring these two sentences together, international brand competition is "market without borders and brand ownership".