By Xinhua writers Xu Xingtang, Wang Yaguang
HOHHOT, Aug. 9 (Xinhua) -- 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 Mongolian Autonomous Region.
Yili is one of China's top food brands and has been officially chosen to
supply dairy products for the 2008 Beijing 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 (2.15 billion U.S. dollars) 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 last five years.
"Inner Mongolia has set an example for the country, and their experience
should be studied and disseminated for developing domestic brands," said
Uyunqimg, vice-chairwoman of the Standing Committee of the National People's
Congress, at the summit.
She said the national economy had been developing steadily and quickly for
many years, but China was 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 in every corner of
the global market with "Made in China" labels, which considerably helped boost
its economy. However, the country was increasingly obsessed by trade disputes
with major partners such as the European Union and the United States, who
complained the flood of Chinese products killed their own industries, stole job
opportunities and seriously unbalanced trade.
The latest issue was the product quality crisis spreading from the U.S. to
other countries. These countries had consumed "Made in China" products for many
years, but suddenly had raised "sub-standard" 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 China Quality Association and an expert in
trademarks and brands, said quality was at the heart of brands, and fostering
brands would 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 andbuild their own
world-class brands to secure the reputation of the "Made in China" label.
Minister of Commerce Bo Xilai said the country was at the very early stage
of brand development. China was top producer of more than 170 products, but had
very few internationally known brands.
Less than 20 percent of exporters had their own brands, and self-owned
brands accounted for no more than 10 percent of total exports.
The result was that Chinese enterprises made only humble profits by
manufacturing for foreign brands. A much talked about story in China was that to
buy an Airbus 380, 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 had
stepped up efforts to promote brand strategy, mainly involving the improvement
of the brand appraisal system, protection of intellectual property rights 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."