Strengthen Branding

A report to the 18th National Congress of the CPC states that “we shall better coordinate trade and industrial policies, and make China’s exports more competitive in terms of technology, brand, quality and service.” Accordingly, China actively promotes the brand cultivation for foreign trade, because it is an important matter of “mode transformation and structure adjustment”, an important method for increasing international competitiveness and an important way of building good image of products that are “made in China”, playing a significant role in transferring China from a major country in trading to one that is strong in trading. In recent years, the Chinese Ministry of Commerce, in concert with the related departments of the State Council, has taken a series of promotion measures to encourage the Chinese enterprises to create, use and build their brands in the international market; as a result, construction of foreign trade brands has achieved positive progress.
I. Effects shown in brand construction for foreign trade
(I) Competitive advantage of foreign trade brand has increased. According to statistics, in 2011 there were 2,551 foreign trade brand enterprises (less than 1% of total number of export enterprises nationwide), which have exported 5% of commodities nationwide, and averagely, a brand enterprise was nearly as 5 times as a non-brand enterprise in terms of export scale. At the 113th China Import and Export Fair of 2013, exhibition area of brand enterprise has achieved USD12.92 billion of trading volume, which is as 5.8 times as that of non-brand enterprises on average. Sample survey statistics by the Ministry of Commerce in 2013 shows that there are 630 enterprises with private brands engaging in the survey, and their export profit rate has amounted to 12.4% on average. As a result, the foreign trade brand enterprises are more competitive in market.
(II) Internationally well-known brands have increased continually. In the international market, foreign trade brands enjoying relatively high popularity from China have also gradually increased. Haier was the only Chinese brand listed in the World’s 500 Most Influential Brands that was firstly released in 2004 by World Brand Lab. However, in the World’s 500 Most Influential Brands of 2012, the number of Chinese brands increased to 23, ranking the 5th in terms of total number. Millward Brown issued BrandZ Top 100 Most Valuable Global Brands for the first time in 2006, wherein, only China Mobile was listed as Chinese brand, but in 2012, the number of Chinese brands increased to 13, and brands such as Lenovo, Haier and Huawei became well-known brands to consumers around the world.
(III) Export proportion of foreign trade brands has risen. The sample survey of 2013 by the Ministry of Commerce showed that in the 630 enterprises involved, more than 70% of them already owned independent brand in 2012, and the total exports of self-owned foreign trade brands accounted for 39.7% of total exports in the same year, of which the exports of self-owned foreign trade brands of joint ventures accounted for 61.4% of its total exports. As a result, situation has been significantly improved regarding low proportion of exports of self-owned brands in foreign trade enterprises in previous time, and the export capability of self-owned brand has been significantly improved.
II. Take multiple measures simultaneously and strengthen the construction of foreign trade brand
(I) Strengthen the protection and service of foreign trade brand construction. First, we shall establish and perfect the system of protecting foreign trade brand, and actively perform the interactive functions of departments relating to commercial affairs, quality inspection, industry and commerce and customs, so as to form a protection system combing enterprise self-protection and administrative protection. Second, we shall further reorganize and standardize business order of foreign trade, and strengthen the work of fighting and investigating illegal behaviors such as patent infringement and behavior relating to fake and poor quality commodity. Third, industrial associates and intermediaries such as chamber of commerce for import and export shall be given full play, so as to actively provide various services for enterprises in terms of brand recommendation, information consultation, professional training, trademark agency and fighting against counterfeits behavior and safeguarding rights.
(II) Improve the policy system of foreign trade brand construction. The Ministry of Commerce, in concert with the related departments, has further researched and improved the supportive policies of perfecting foreign trade brand, and resolved the difficulties encountered by foreign trade enterprises in terms of market development and technological innovation and so on. To this end, the following measures have been adopted. First, we shall continue to support brand enterprises in registering trade mark, applying for patent and obtaining the related certifications and coping with intellectual property rights dispute in foreign countries. Second, under the premise of meeting the WTO rules, we shall provide policy support, expand financing channel and reduce risks of market development for foreign trade brand enterprises. Third, we shall promote the foreign trade brand enterprises to strengthen innovative capability and work hard to form independent intellectual property rights and core technology.
(III) Strengthen the support in foreign trade brand construction. First, through taking measures such as re-review of base number of exhibition area for brand enterprises at China Import and Export Fair, optimization of entities participating in the Fair and exhibits structure, we have provided opportunities of recommending branded products for more foreign trade brand enterprises. Second, we shall do well in conducting China Brand Show in Europe, America and Africa, and publicizing industries such as textiles and light industry as special subjects in foreign countries, so as to improve foreign consumers on the sense of identity of products made in China. Third, we shall carry out national communication and training for foreign trade brands, in order to further enhance the brand awareness and capability and level of brand strategic management of enterprises. Fourth, by taking advantage of main stream media and activities on promoting trade and investment etc. from domestic and abroad, we shall publicize and promote the products and enterprises with foreign trade brands. Fifth, by combining the work of international marketing network construction, we shall support the foreign trade brand enterprise to utilize international marketing network to market its brand, so as to expand international market.
Source: http://english.mofcom.gov.cn/article/newsrelease/significantnews/201312/20131200441427.shtml

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