In the face of "virtual depression" Chinese enterprises to build "standard brand"?

Chinese companies have to change their marketing strategies to convert their products from the original Low-cost domestic sales to the standard products. Wen/Milton Cottler (World famous Marketing master) in the financial crisis, if compared with the United States, Europe and Japan, China did very good. The financial system is very orderly, everything is in order, the banks are not closed, the retail market is growing, but China's retail growth rate is falling. We call this phenomenon in China "a virtual depression, a relative depression relative to the western world, relative to the rest of the world."　　"How can we stimulate China's economy and directly affect China's consumer market?" Consumer credit is the fastest and biggest engine China must increase the purchasing power of consumers, but to have more purchasing power, there will be greater credit, so the biggest challenge is to increase consumer credit, which is a challenge.　　China's credit card market is booming, but it still needs to be developed. The dilemma for China is that China is boosting its infrastructure to spur growth, employment and income, but within that total, only an average 30% per cent increase will shift to retail outlets. It is possible that most people put more than 40% of their income into the bank.　　This can make the society become harmonious and stable, but can not improve the domestic consumption capacity of internal market, can not bring value-added manufacturing. As a result, China needs consumer credit and some spending to release the money to retail outlets and the retail sector to fully release the Chinese consumer potential while offsetting the export slump and strike a balance.　　The urgent task facing the Chinese government is how to get people to spend money to boost the use of credit cards in consumer spending.　　"Spending is glorious, consumption is glorious", this is the idea that should be advocated today. At the end of 2007, China circulated a total of 100 million credit cards, each of which had a very small amount, perhaps 10,000 yuan. In the United States, consumer credit is roughly 20% of GDP, and America's retail trade by credit card accounts for about 1/3 of the U.S. retail sector. The consumer credit of Germany is probably 10% of GDP. Even in Mexico, 34% of citizens have credit cards. China's long-term goal should be to have 350 million credit cards, but now only 0.01% of Chinese people use or hold credit cards.　　That's why we need to move more rationally towards a consumer credit-led goal. We have no reason to make every man a miser, or to have each of them cover their pockets without credit card for consumption.　　Not to spend, it's very bad.　　Change marketing strategy to control the standard brand promotion Chinese enterprises must change the original marketing strategy, the positioning from the original Low-cost domestic sales of products to the standard brand. What is "Standard brand"? That means he has some culture, some features,Some social influence, social status. Honda's accord, Hyundai's Sonata, for example, is a brand of standard brands in the automotive industry. What are the inexpensive brands? They offer some of the most basic features that a product should have, and a little bit of a feature, second in the standard brand. such as Ford, Honda Civic, or some cheap brands, such as Chevole.　　In the next 5 years, China's car brand Geely, the Great Wall if the European market, they are the representative of cheap cars. China's brand trends are not the same as in the West. Western brand trends are going down, from luxury brands to high-end, to cheap, to standard, and then to cheap. And China's brand trend is mixed, luxury and cheap coexist.　　But now, China is moving from cheap goods to affordable development, and is slowly moving towards standards. China has yet to make luxury products. China's domestic retail market is largely a cheap product, but people are increasingly inclined to buy inexpensive products. It is the use of this trend to change the strategy to better compete with the United States.　　So in all walks of life, Chinese middle-class buying trends are changing, from buying affordable brands to buying standard, socially-dominant brands.　　Therefore, Chinese enterprises in the near future, must well manage the control value and the standard brand promotion, the technology investment should take the value and the standard brand control as the direction, shifts to the better product design. I am very pleased to see Haier Group won the 2008 Germany's Red dot product Design award, which is an international product design award. Haier's refrigerator product design is very good, won the first prize. This shows that the design of the product is very important.　　China must make some deep and sustained investment in technology, which is also a kind of control of the market, and products will have better characteristics to attract buyers ' confidence and attention. Learning to deal with protectionism the global economic malaise has not only reduced demand for exports, but has also continued to promote trade protectionism.　　Therefore, China must be proactive, learn to deal with protectionism, and adopt various ways to make better adjustments to export production.　　How do Chinese brands remain competitive at home and abroad in cheap low-end markets? Do not try to compare with foreign manufacturers in performance, product performance or advanced, luxury level. China should vigorously strengthen its own research and development, independent innovation, and better ensure its own competitive advantage. If China continues to produce cheap goods in large quantities, some of his labor resources, cultural factors, or the chain of Labor will have a negative impact.　　In China's Shenzhen, Vietnam, Egypt and other countries and regions, there are such phenomena, so many parts of the world are flooded with cheap products. In order to solve this problem, China does not necessarily have to reduce the amount of manufacturing, but must increase the distribution network in the region, the local region, in order to better enable the same batch of products to generate higher profits. This is what manufacturing must pay attention to.Place。　　China must shift its export-oriented exports to strategic alliances in the region to better offset some of the adverse effects of the export slump. In addition, Chinese companies must learn to handle protectionism well and protect themselves in competition.　　China can develop alliances with the United States and Europe to better control production, brand building and brand promotion. In the United States, for example, land purchases are cheaper than in Shenzhen and Dongguan in Guangdong, and local governments offer refunds on labor costs, especially for foreign manufacturing companies. If an economic union is established, the Chinese enterprises in this economic development zone, can use some local managers to do the relevant management work. More importantly, this special economic zone will also have very sensible planning, very detailed and prudent political consultation, can well let foreign companies and local laws and regulations together. It is dangerous for Chinese companies to buy an American company in Wisconsin State, New Jersey, or Kansas State in the United States. Because without political protection, businesses could be politically isolated. But in the Economic Development Union zone, there are some political protections that can have some beneficial effects in terms of employment or value transfer.　　So we have to look at these local protectionism very well. (This article according to Milton Cottler May 8 in Shenzhen, "2009 China Media Enterprise Cooperation Summit Forum" organized by the speech)