Brand building started from small to medium-sized enterprises

The development of SMEs in China is increasingly restricted by the brand. The lack of brand competitiveness has become the most serious bottleneck in the development of SMEs. The lack of brand competitiveness of SMEs is an indisputable fact.

Huang Zekai, a lecturer on the “One Thousand-Major Project for Competitive Engineering”, said: “SMEs that lack brands often lack long-term development goals. They only care about the business regardless of the company. There is no brand and no consumer loyalty, so if there is competition, they can only fight. The price war - a weak brand of SMEs, its vitality will not be strong.

Brand is the guarantee of the continuation of life

Competition is cruel, and many small and medium-sized enterprises struggling in the bottom of the market are all encountering the bottleneck of brand development on the road to development of the company. It is only then that the small business needs to be a brand. In fact, any large company starts from small businesses. Practice has shown that in the early stages of development, companies that have formulated long-term brand strategic goals, brand awareness, and long-term brand management concepts will have greater and faster growth opportunities.

At present, the brand influence of Chinese SMEs is generally weak. Some SMEs even think that branding is a big business. They are only small companies. As long as they have a market, it does not matter if they do not do a brand. In fact, the “market” without strong brand support will inevitably lack stability. In other words, the brand is the most powerful guarantee for sustainable development of the company. As long as the company exists, it needs to be branded.

The world-famous advertising guru, Sterphen King, once said: “Products are things produced in factories, and brands are what consumers buy. A product can be imitated by competitors, but the brand is unique. The products will soon be obsolete, and successful brands will last forever."

There are many similar products and alternative products that compete with each other in the market today. Some companies still stay in advertising and product marketing, ignoring brand value, and even more, consider product management as brand management. Businesses think that brands need a lot of investment, so they give up to cultivate the brand. As everyone knows, the brand is the pass for products to the international market, companies must adapt to the market's consumer needs, we must take the road of brand management.

The creation of brand connotation

Wu Wentao, Deputy Secretary-General of the Competitive Engineering Executive Committee, believes: “The corporate brand expresses the connotation of the company and the product brand expresses the connotation of the product. The creation of the corporate brand is even more difficult. In the process of creating the corporate brand, it is not relying more on advertising and relying on it. "Gonggong praises German style articles, but relies on the quality of entrepreneurs and depends on the quality of corporate management."

“As we all know, when Haier Zhang Ruimin slammed his hammer to an unqualified refrigerator, when Haier created his own OEC and SST model, when Wang Shi of Dan Vanke climbed Mount Everest, when Liu Chuanzhi spent a large sum of money to acquire the IBM PC division. They all promote their corporate management and culture through their own personality and temperament."

“Corporate branding needs to be expressed at all times in order to be successful. Not only does it have to be expressed when it grows up, but it must be expressed when it is small. The rest is only the technique of how to express it.”

Making a brand is also a profit

The research on the modern industrial value chain shows that the profit of the industrial chain presents a “V” shape, which is the so-called smile curve. In this curve, OEM, ODM, and OBM are two industries with profit margins between 20% and 25%, while the processing industry's profits are in the middle. Only 5%. Obviously, the profit of the brand is 4-5 times that of the production profit.

To this end, Wu Wentao, Deputy Secretary-General of the Competitive Engineering Executive Committee, reminded SMEs that having a market is more important than owning a factory. The only way to have a market is to have a brand that dominates the market.

On the other hand, more and more consumers have begun to deepen brand awareness and tend to buy branded products, because choosing a well-known brand is undoubtedly a time-saving, reliable and not risky decision. At the same time, the brand conveys a way of life to consumers. When people consume a certain product, they are given a symbolic meaning, and finally reflect the people's attitude towards life and life. In other words, brands can be given higher value than products.

Brand building needs to accumulate

Many SMEs simplifies creating a brand as a large-scale advertising campaign rather than a long-term strategy. Many Chinese business managers do not believe in intangible things. Brands are intangible. The lack of a unified brand planning and development ideas has become the soft spot of most SMEs.

Ms. Zheng Yanjie, an expert judge of the “Competitive Engineering Thousand Teachers” Program, pointed out: “The construction of a brand is a long-term and continuous task. It requires a process of continuous creation and execution of thinking, and gradually achieves the strategic goals of the brand. In this process, The long-term efforts of the company's shareholders, managers, and employees.”

In today's era of brand competition, any brand starts with small and medium-sized enterprises. Enterprises rely on the brand to survive, the market relies on brand integration, local areas rely on brand development, and the country relies on brand rejuvenation. Therefore, the value of intangible assets owned by a brand, the quality value of a branded product, and the value of a trademark will enable the brand to bring huge economic benefits to the company.