Index notes weakness in nation's brands

By Yang Cheng and Zhang Shiyi

Zhou Feng, director of China Brand Research Center.  Provided to China Daily
 

BEIJING - Chinese companies continue to struggle in building brands that command consumer loyalty and recognition, according to survey results from a new center backed by the Ministry of Industry and Information Technology.

A total of 105 top brands were listed on the newly established China Brand Power Index (C-BPI) compiled by the China Brand Research Center.

Twenty-three of the brands listed are from State-owned enterprises or their joint ventures and 35 are owned by domestic firms. The rest are products from multinationals.

P&G alone has 10 brands ranked among the best-recognized in China.

The C-BPI results were based on 13,500 surveys in 30 cities across the country, the first of its kind in China to measure consumer awareness and loyalty.

Survey results found that domestic brands - both State-owned and private - are feeling the effects of mounting competition in the consumer market.

Xiong Zhenbang, deputy general manager of leading brand China Post Logistics Co Ltd, noted that even "as a time-honored enterprise, we feel ever-increasing pressure in the market every day".

His remarks were echoed by an insider at State-owned vintner Great Wall Wine, which is battling growing numbers of foreign competitors.

While requesting anonymity, he noted the level of imported wine from Italy alone has skyrocketed 10 times in seven years. He predicted that imported wine will continue to set new sales records in the country.

Jaeyub Lee, vice-president of the greater China region for Sumsung, the best-recognized television brand in the country, said rivalry is now so intense in the world's largest market it "is now like the Olympics Games where world's best athletes gather".

Analysts and academics agree that China's enterprises should create more valuable international brands instead of manufacturing outsourced and low-end products.

Liu Yuanchuan, deputy dean of the Economy School of Renmin University of China, said that of the nation's $3 trillion yuan in trade, 54 percent comes through processing goods for foreign brands.

"This is only 8 percent of the value chain, while multinationals earn 15 to 20 percent," he said. "It also results in the failure to build domestic brands."

The C-BPI is a move to help foster consumer recognition and encourage brand awareness in companies, according to Zhou Feng, director of the brand research center.

He noted that the assessment will expand to 160 sectors next year and will introduce more systematic and scientific evaluation. In addition to the C-BPI, the center will publish a new China Customer Satisfaction Index and offer diagnosis, strategy consultation and education to strengthen domestic brands.