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| Friday, October 10, 2008 20:57:29 |
Most national brands do not survive 2-year life cycle
Among tens of thousands of registered domestic labels, the average life cycle does not exceed two years and most enterprises do not last for more than eight years, the Beijing Morning Post reported.
The Ministry of Commerce said that although brand building has been much strengthened among Mainland companies in recent years, national brands' development remain in an early stage with weak innovation on label construction. They not only suffer from limited reputation and influence in respective markets but also short life cycle and undefined images. In the 2005 list of the top 500 world labels, only Lenovo, CCTV, Changhong and Haier were mentioned.
The manufacturing industry has maintained annual growth of 20 percent in the past four years. However, domestic brands remain uncompetitive. China is known for its manufacturing, not its domestic innovations. According to official statistics, not even 20 percent of domestic import and export firms have their own labels and domestic labels account for less than 10 percent of total exports.
The Ministry of Commerce sees the need to transfer the trade growth structure and widen domestic consumption to favor domestic brands. The 4-month nationwide campaign intends to raise national awareness of domestic labels through a series of evaluation and promotional activities, which would enhance the development of China’s brand building.
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