Tips for the traditional Chinese business image

Vintage brands have been rising in the west of the last five years – and the trend continues famous marks in the 80s that had been forgotten have been rejuvenated to see new fame days. Converse All Stars, to cite a familiar example, is back in style after years of hibernation.

China has many brands of vintage and traditional people, known as "THE O Zi Hao", but few know that there, much less recognize the heritage that is still in their midst.

[For a detailed history of China vintage / heritage tick marks "see history since the end of the article]

Unfortunately, many of these brands have developed negative identities in recent decades. Because they did not follow the requirements of consumers today, making the younger generation to see these products as something obsolete and their parents buy. Also, before protection formal? O zi hao brands in 1991, many small businesses created poor-quality copies that damaged the reputation? or Zi Hao and a decline in market share.

However, despite the often negative perception of these brands trademarks s? or Zi Hao possesses several qualities that make their abandonment is not an optimal choice to traditional Chinese companies.

On the one hand, much of? O zi hao being huge marks from the following market segments. Because older people on the reliability and the family tradition Use of specific brands? or Zi Hao, companies benefit from the marketing of word-of-mouth. Not wanting to change their habits, the older generation are unwilling to give up? O zi hao products without good reason, which allows? Zi Hao or maintain their presence in certain market segments.

Although some of the? O zi hao products have lost their reputation, other traditional Chinese have managed to keep her. For example, as mentioned in a previous article Labbrand "Luxury Brands in China movement," Chinese enterprises and alcohol Maotai w? Liángyè benefit no similar competitors producing alcoholic beverages. new market entrants are not able to establish the reputation of these traditional businesses ever made in a short period of time. For traditional products, Chinese believe that the company has the longest history with the highest quality due to their continued production of the same product.

In addition, the? O zi hao trademarks receives strong government support to protect and promote their brands. In 2005, the Ministry of Commerce established the new laws? O zi hao denominations, providing support bureaucratic and marketing of the original? or Zi Hao to combat the risks of misuse by small businesses. Traditional Chinese companies may also be able to receive financial support from the government in case of need to invest more in the marked and continuous.

Several measures can be taken by brand? O zi hao companies to revitalize the traditional brands in the market and to reverse its economic decline.

First, the L? O zi hao brands can be promoted through cooperation with other industries, for example, the tourism industry. Trips to historic sites is an important issue in Chinese tourism, and insisting on its assets local, L? O zi hao brands may be marketed to all "local" specialties "to offer their products at historic sites. Tourism grows in a locality, the local specialty "Profit, allowing the couple? O Zi Hao thrive in place and then through National retail.

Another possibility is cooperation with the media. Historical dramas are based on Chinese television and the present? Zi Hao or both directly and indirectly in drama can increase brand visibility. A notable example is the? Ngnányàoxiá, a drama of life stories wangle? Oji, the founder of wangle? Oji Liangchen, L Guangdong base? or Zi Hao and manufacturer of herbal tea. Company was an opportunity to present a new version keeps the tea made famous by the TV drama. Canned tea herbal has able to establish a strong market for beverages, which significantly increases the income of the company.

Beyond of these tactical considerations, perhaps the most important brand strategy to be implemented by the l? or Zi Hao is a clear redefinition of their position in the market. Although many? O zi hao products were sold only to each one in the past, today's increasingly complex divisions consumer groups forced to target specific audiences in order to avoid unnecessary competition and increase brand value. In particular, there are three ways for a niche to generate:

1. Redefining? Or as much as Zi Hao a luxury brand, attracting national and international foreign and the new Chinese elite who are interested in the exotic nature of the Chinese tradition. THE O Zi Hao must establish a sense of superiority unique product design, quality materials, and emphasis on the use by Imperial and / or other large families in the past. The Chinese? O Zi Hao could learn from foreign capital in Shanghai Tang, a luxury brand founded in 1994 with the successful marketing of traditional clothing Chinese wealthy foreigners through Sinophiles small shops.
2. Combining tradition and modernity: the state of the technology to compete internationally on the basis of equality with other domestic and foreign manufacturers. THE O Zi Hao place too much emphasis on the preservation of tradition is not the marketing Eclipse features advanced product features. Shanghai Watch, though not officially designated? O Zi Hao has reached some recovery in highlighting both the history and components quality watches. They are positioned as a luxury fashion or luxury brand, like Rolex.
3. Targeting the growing market for vintage goods. Many young people, especially in the West are turning to the old styles, including antiques, for daily use such as fashion statements. One example is the 1960-to models by manufacturers of sports shoes from China Warrior, Feiyue, and Double Star again but is unofficial l? O Zi Hao, their shoes with the same reasons for decades have recently been sold at high prices in the trendy shops in the West (such as Galeries Lafayette) young people looking for a vintage style.
   In general, the key to the recovery of l? O Zi Hao is a clear understanding of the modern market. While it is clear that older people who grew up with the marks of childhood are increasingly rare, L? O zi hao can still retain past glory through innovative measures of the mark. By knowing exactly where to go and how to change the brand to appeal to target markets L? Hao Zi or can raise its brand value and grow in the new market as they have done in past centuries.

   A look at history

While nationalization policies in the early days of the People's Republic of China and the dominant ideologies of the Revolution Cultural led to the disappearance and destruction of many traditional brands with centuries of business in China, there are still about 2,000 companies that survive traditional Chinese today.

In 1991, former Interior Department of Commerce has formally designated around 1600 brands in China such as China marks the secular. All trademarks are the common property "prominent Chinese traditional cultural backgrounds with the support of the practices passed on from generation." THE O Zi Hao were generally only granted to companies established during the Ming and Qing dynasties, as well as pre-PRC Republic of China.

However, despite proclamations official marks of the economic situation of Chinese heritage are generally serious. Of the approximately 1600 registered the trademark? O Zi Hao, only 30% parents are still in continuous operation. The other companies are on the verge of bankruptcy due to large operating losses and debts despite to be in possession of government-designated? Zi Hao O brand names.

Much of the economic legacy brand China experienced in the last year is directly attributable to competition faced by both foreign and domestic brands from the opening of the Chinese market.

In fact, many did not follow the changing tastes of new generations. They continued to produce products for which applications have declined technology and economic conditions have been developed. For example, an established manufacturer once famous throughout China and Southeast Asia for sewing machines for domestic use in Shanghai, do not rearrange the design of products and functions, therefore, different styles of modern clothing and therefore quickly lose market share to manufacturers of comings and goings in the early 1980's and early 1990.

While the brands are part of the survivor of the old generation of Chinese life, the younger generation is not welcome their conservative nature. Young people do not use the same or similar products used by their parents and grandparents. Without the spirit of welcome progressive heritage brands and you can never set foot in the wider base and broader "new" consumers who grew up with the s? O zi Hao brands.

In addition, the names of Chinese heritage have not been able to compensate loss of national markets through overseas expansion. The sense of tradition attached to them has little resonance for foreign consumers know very little about history? O Zi Hao and their status in the eyes of the Chinese elderly. At the same time, many of those? O Zi Hao are handicapped by their image as a traditional foreign-sounding names promising Chinese brand (illustrated by Shanghai restaurant "former prosperity only) lost all sense translations foreign languages.

Despite these obstacles, some small merchants tried to capitalize on the past glory? or Zi Hao. Before the formal protection the real? O Zi Hao in 1991 marks, the marks were registered by companies in many different areas to enjoy the reputation of the original? or Zi Hao. Like many small firms could not guarantee the quality of their products, marketing heavily damaged the reputation of the original? or Zi Hao and thus enhance market share has decreased the initial movement.

In this article, the Although the sample L? Hao zi or brand had a last fragile, there is still hope for future.

About the Author

Vladimir Djurovic is the founder and Managing Director of Labbrand, a Shanghai based innovative brand agency specialized in brand research, strategic and creative services. Labbrand website at: http://labbrand.com/ is also the portal to Labbrand branding blog: http://labbrand.com/english/news_and_articles.php/
and reviews of branding related hot topics, with a special focus on China.

Smart Bar (Folding and mobile bar)

This entry was posted on Sunday, July 25th, 2010 at 2:23 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.