Saturday, November 11, 2006

The Solution to Branding


Last week-end, as my dad was visiting, I went to Shenzhen to show him the difference between Hong Kong life and China life. Sure enough, you cannot summarize China by looking at Shenzhen, but you see a big difference with Hong Kong right when you cross the border. Colors are paler. It is dusty everywhere because of the continuous construction going on. People look tired. You can tell you are not in Hong Kong anymore. You can tell you are in a country that is developing and in a city that is still struggling to find its identity.

On one of our errands, we saw a celebration in the street. A Hong Kong jewelry brand was celebrating a very important event. That brand had joined the exclusive circle of "CHINA FAMOUS BRANDS" as the certificate that they were showing off explained (see picture on the right).

That got me thinking... How can a certificate, be it from the most important government body, give you the status of a famous brand. Aren't the people supposed to decide which company is famous and which one is not?

Now, I am reading "1 Billion Customers" by James Mc Gregor right now (a book that I recommend to anybody with interest in doing business in China). In the book he explains how the Chinese government when there is a lot of money at stake will find ways to benefit more from it.

To me that example could be one of these. Branding, advertising and marketing in general are great sources of revenue. So, what if the government could issue a document that decided whether you were famous or not, whether your brand was a valuable asset or not, wouldn't that be a great power in the hands of the government?

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