HOHHOT, China - When China's leading experts in intellectual-property
protection and trademarks wanted to get together this month, they visited Yili
Group in Hohhot, capital of Inner Mongolia autonomous region.
Yili is one of China's top food brands and has been officially chosen to supply
dairy products for the 2008 Beijing Summer Olympic Games.
The experts, and more than 500 officials and entrepreneurs from
around the country, came for the Summit of Independent Innovation and Domestic
Brand Development Strategy.
Summit spokesman Wang Kaiqian said the venue was selected because the
relatively less developed region has sharply boosted its economy with the
development of leading brands. With an income of 16.34 billion yuan (US$2.16
billion) in 2006, Yili is aiming to become one of the world's top 10 dairy
producers by 2015.
Inner Mongolia also boasts more than 20 nationally known brands of food,
cashmere and other products. Supported by the leading brands, the region has
topped China's provincial areas in economic growth for the past five years.
"Inner Mongolia has set an example for the country, and their experience should
be studied and disseminated for developing domestic brands," Uyunqimg, vice
chairwoman of the Standing Committee of the National People's Congress, said at
the summit.
She said the national economy has been developing steadily and quickly for many
years, but China is still only a "manufacturing giant", not a "brand power". To
compete internationally, the country needs its own brands. With improved
economic, legal and market environments, it is time to become a brand power.
As a manufacturing giant, China has made its presence felt in every corner of
the global market with "Made in China" labels, which have helped boost its
economy. However, the country is increasingly involved in trade disputes with
major partners such as the European Union and the United States, which complain
that the flood of Chinese products damages their own industries, steals job
opportunities and seriously unbalances trade.
The latest issue is the product-quality crisis spreading from the US to other
countries. These countries had consumed "Made in China" products for many
years, but suddenly had raised "substandard" or "unsafe" complaints since the
beginning of the year, said Uyunqimg.
Though unconvincing, they had spurred the Chinese government to consider ways
to change its growth pattern, and the development of home brands was one of its
latest strategies, she said.
Ai Feng, vice president of the China Quality Association and an expert in
trademarks and brands, said quality is at the heart of brands, and fostering
brands will undoubtedly help boost product quality. "China is seeking to turn
from price competition to quality competition," he said.
Last month at a national meeting on quality control, Premier Wen Jiabao called
on domestic firms to improve product quality and build their own world-class
brands to secure the reputation of the "Made in China" label.
Commerce Minister Bo Xilai said the country is at the very early stage of brand
development. China is the top producer of more than 170 products, but has very
few internationally known brands.
Fewer than 20% of exporters have their own brands, and self-owned brands
account for no more than 10% of total exports.
The result is that Chinese enterprises make only humble profits by
manufacturing for foreign brands. A much-talked-about story in China is that to
buy a single Airbus A380, China had to export 800 million shirts.
"To maintain the strong momentum of economic growth, 'Made in China' must
become 'Created in China'," said Li Guangdou, an expert on brand development.
"The future belongs to brands, especially global brands."
Government officials, experts and entrepreneurs at the summit agreed on the
importance of developing brands, urging government departments to provide
better legal and policy environments.
Vice Minister of Commerce Jiang Zengwei said the Commerce Ministry has stepped
up efforts to promote brand strategy, mainly involving the improvement of the
brand-appraisal system, protection of intellectual property, and a
brand-promotion system.
Li Chuanqing, vice director of the State Administration of Quality Supervision,
Inspection and Quarantine, said that since the administration launched a brand
promotion committee with 64 other organizations in 2002, a large number of
domestic brands had sprung up.
"So far 30 provincial regions have established brand-promotion institutions,
and brand development has been written into their economic development plans,"
Li said. "This is fairly promising."
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