How are high-value brands made?

A brand is not just a trademark or slogan. Jean-Nolkapfer, a professor at HEC Business School in Paris, found that if the price index of a French car is 100, the French will think it is normal to spend 1 15 on a German car, which makes the Germans think it is worthwhile to invest more money in R&D and quality control. For a company, there is no doubt that a strong and high-value brand is the main competitive advantage. But what kind of brand has high value? In the past year, enterprises in China have continuously increased their investment in brand building. The published research results of the top 50 brands in China show that many brands have achieved great value enhancement. China Brand Transfer in Adolescence If you want to draw a portrait of the 50 high-value brands on this list, Tan Beiping, the R&D director of Huatong Luo Ming Greater China under WPP Group, has a 23-year-old young man who just graduated from college on the drawing board. According to the data in the list, most of the above-mentioned high-value brands are in adolescence under the age of 30, and statistics show that the median age is 23, that is to say, they are at the time of ending the rapid absorption growth period and starting their careers. This age also means that they need to find the needs of the older generation of consumers and the new generation of consumers who once loved themselves. Statistics show that the average age of international high-value brands is about 50 years old, and some brands, such as Coca-Cola, have a history of 100 years. Although it also faces the problem of brand aging, it often has a complete brand system, management system and the ability to control change. Therefore, in the competition of China market, brands such as Li Ning, Anta and 36 1 developed actively, bravely and rapidly in the first decade, and Li Ning has surpassed Adidas in market share. On the contrary, Nike and Adi were relatively cautious and conservative in previous years, but due to their clear positioning and mature management system, their performance at this stage is relatively stable. At the same time, this age gap is also one of the reasons for the low degree of internationalization of China brands. Although there are 13 China brands in the new BrandZ Global Brand Value 100 list, Tan Beiping believes that most China brands are not truly international brands. Most of the global high-value brands have large revenues overseas, and they have gained successful experience in at least three regions. China's high-value brands are competitive in the local market, but some of them are not internationalized. Of course, part of the reason is that many high-value brands in China are state-owned enterprises, which have advantages in some domestic markets with insufficient competition, but it is still difficult to adapt to the international market competition. "On the other hand, Tan Beiping also found that in the past 2-3 years, some China brands have been in a crisis of trust, and China people's trust in China brands has been declining. Moreover, with the development of digital media, the brand crisis will be amplified, and sometimes even if the enterprise has minor flaws, it may form a crisis if it is not dealt with in time. In fact, many brands, including high-value brands on the list, have encountered various crises. Tan Beiping believes that the first thing is to practice internal strength and adhere to professional ethics. On the other hand, people should not avoid the crisis, but should respond frankly and quickly. * * * of a high-value brand, so how to enhance the value of the brand? Tan Beiping believes that brands must first understand where their value comes from. Tan Beiping told Financial Daily that brand sales performance is the basis of brand value. Of course, this value is only reflected in the value related to the main business of the brand. If some enterprises have sideline businesses such as real estate, they cannot be counted. However, the increase of sales revenue alone cannot explain the improvement of brand value. If it is because of the large-scale promotion during the year, the sales volume may increase in the short term, but this growth is unstable; If sales are obtained because of monopoly, consumers may choose other brands once the market changes. The level of brand value is not the self-talk of enterprises, but the trust and definition in consumers' hearts. Tan Beiping said. The second is to look at the driving force of brand development, or the potential for growth. Although brand growth will be affected by market growth, just as the growth rate of China is unlikely to reappear in European and American markets, if the brand has a unique positioning and development direction, it can be expected that its brand will grow exponentially in the future. In addition to the above criteria for evaluating brand value, in Tan Peiping's view, high-value brands also have a * * * feature, which is to enable consumers to obtain more emotional factors besides functional value. For example, China Merchants Bank (stock market, cash flow) may be functionally similar to other banks, but for consumers, it is more caring and more service-oriented. This is why some state-owned banks have large sales and wide network coverage, but the growth rate of brand assets is not as fast as that of some private enterprises. In fact, the more valuable a brand is, the higher its brand premium and the more its profit. Of course, this requires enterprises to be superior to other R&D brands in management, advertising, quality and market demand, and to be able to recommend innovative and good products to consumers more quickly, so that consumers can feel the value of investing in good brands. Related: The innovation ability of high-value brands Although the outside world has always questioned the innovation ability of China enterprises and brands, Tan Beiping found that those high-value brands are not lacking in innovation direction, communication innovation, positioning innovation, product innovation and service innovation. He said that in China market, especially some market-oriented private enterprises, there is no shortage of innovation. However, Tan Beiping also said that the problem faced by Chinese enterprises is the lack of continuous innovation and a lasting and perfect innovation system, which will also be one of the obstacles for enterprises to build high-value brands. As for how to build high-value enterprises, Tan Beiping thinks that China enterprises should change the competition mode with sales-driven and market channel expansion as the core from the grand strategy, but reconsider the brand-centered competition mode. In fact, some brands have begun to implement the contraction strategy and pay more attention to brand management. On the other hand, brands should also have their own brand ideals, which is also what kind of benefits enterprises can bring to consumers.