The brand is the pass for the believer, and the cottage is the epitaph of the speculator.
Editor’s note: This article comes from WeChat public account “Advance Finance” ( ID: jinbubo), the author’s attack wave.
01
I have been doing business research for a long time, and often I can see some magic realism stories.
In 2007, Putian, China’s fake shoes appeared in the “New York Times”. So far, AJ and coconut fried shoes have been on the buzz, but the ash production identified from the upstream to the downstream of the industry continues to explode. Many manufacturers along the coast relying on OEM, high-end cottages, and A goods, many choose to continue to do gray production and collect IQ taxes.
In 2012, a milk tea shop “Huangcha” opened in Jiangmen, Guangdong. As a result, there were endless copycats and trademarks were registered by the copycat shops. As a result, the authentic brand shop can no longer use Huangcha, so it was renamed “Hi Tea”. Hi tea is seven years old this year, and Huangcha is almost poured.
Some time ago, I discovered that the Simmons mattress in my home turned out to be a cottage, and then I studied various cottage industries in “Hair Crab in Yangchenghu Town”. Originally, I also played a magnificent title “Farewell, the era of Chinese cottage”, and quickly slammed the face: The cottage did not stop, but intensified.
Why is the cottage so arrogant? The doorway behind it is four words, “legal cottage”, which is called “legal fake” in foreign countries. The explanation on Wikipedia is that in another country, a third-party company pre-registers before the original brand company, or imitates a trademark registration. Using the original brand ’s products, creativity, marketing, and advertising strategies to deceive consumers who do n’t know about counterfeit goods, harvest high brand premiums.
In other words, they did not pay the huge cost of product development, quality control, and marketing advertising, but they tried to hitchhiking and harvest high profits.
“Legal cottage” is translated from “legal fake”, but it is not a legal term. To put it bluntly, this is a business model of “no trespass and no business”. Copying the original brand and product, the ultimate goal is to create a new business parallel to the original brand and make yourself a real brand. In short, it is to use genuine brand benefits and product endorsement to deceive consumers and earn high profits.
Consumers buy fake products, pay the genuine price, and pay a higher price, and the cottage can’t do the corresponding mattress warranty, warranty, warranty and so on. Once the cottage brand goes out of business, just as the early education institutions and gyms in recent months have gone out of business, consumers’ rights and interests immediately disappear.
Another example, “Boy London”, the left and right are legal cottages and the original logo. The one on the left is the creator of the cottage brand. The counterfeiting of “legal cottage” is very confusing, and it can be seen that the difference between the two is the coloring of the eagle on the Logo and the head’s orientation, but the styles are very close.
Whether it is at home or abroad, the world’s bitter cottage has been for a long time! Is there no way to crack the legal cottage?
Should we send a thank you letter? Would you like to thank the cottage for harvesting a wave of IQ tax and making a lot of money in the process of upgrading the consumption of the Chinese masses? Li Gui sued Li Yan, who bypassed the sky?
No, in fact, we should thank the cottage. Deeply educated the market and made consumers pay a heavy price to realize what a “real brand” is.
02
We have said in many articles that China has the world’s strongest mid-range supply chain. Why do you persuade yourself as a brand and independent innovation? Why do we have to do wedding dresses for others?
If you start from a cottage, you wo n’t be right.One day, it’s always a bad name. Always branded and addicted, these factories can never be themselves and speak for themselves. From OEM to the cottage, after all, it is the reputation of Western brands and gold for themselves. But OEM is not gold, but the absence of brand equity. For the cottage, the brand is not an asset. It can be said that it is out of the mother’s womb and is in debt.
This is the inertia of thinking that many businessmen earn the first bucket of gold in the 30 years before the reform and opening up. However, this logic of “bringing doctrine” has led to the “short life” of Chinese companies and Chinese brands. The US “Fortune” reported that the average life expectancy of Chinese SMEs is only 2.5 years, and the average life expectancy of group companies is only 7-8 years.
In the survey of “Extreme Details”, there were 5,586 companies with a lifespan of more than 200 years in 41 countries around the world, 3146 in Japan, 837 in Germany, and only 9 in mainland China. What’s behind this? It’s a completely different business mindset.
(Illustration from the book “Extreme Details”
In Germany, Japan, and other European and American countries, business and society have been developing for a long time, brand protection has become more mature, and corporate inheritance mechanisms have been improved. Therefore, the brand and the company were founded with a long-term business in mind. In the tide of reform and opening up in just 40 years, China has too many dividends and too many arbitrage opportunities, which has fueled the trend of making quick money and copycats.
Building your own brand and being a century-old company means a completely different path. For example, Xiaomi, which was killed in a domestic cottage smart phone, has to be Ali of 104 years of business in the beginning. Their brand potential has made it impossible for similar companies to achieve their goals. The difference in the underlying logic can achieve a long-term enterprise and a true independent brand.
Brand is an asset. Luxury, light luxury, designer brands. Simmons, Lycra or Jeep are the pioneers of market segments. They have maintained the vanguard position of leader in the long time. .
Due to the short history of China’s entry into the business society, our company is still learning from Handan. In the last century, Drucker, the master of management, put forward that the purpose of business is to meet the needs of society, not simply “profit”. He believes that the purpose of the business is why the market