Brand, the general course of development
Hong Kong toy makers have to encounter lots of toughness during these years. Soaring price of fuel and increasing pressure resulting from global inflation have caused product cost to surge up rapidly. Subprime lending and credit crisis also have negative affect against consumers’ confidence as well as Hong Kong toy makers’ order received. So far as production is concerned, mainland’s adjusted policy on processing trade and the new labor law add fuel to fire too.
In earlier time, I once indicated that, Hong Kong investors should have good nose for hardship and make good preparation for moving, transforming or upgrading. In addition, a strategy can also brought into consideration—creating own brand so as to improve product value and higher profit. We can compete with others with good outstanding design and brand and expand domestic market in an active way.
Central government’s “11 Five-years Development Plan” has determined the future developing direction for mainland companies, which encourages them to join global market by upgrading industrial structure and enhance independent innovation. Last October in the 17th National Congress of the CPC, Hu Jintao definitely encouraged independent innovation and announced to develop a country with innovative power. At the same time, perfect legal mechanism would be established to protect technologic achievement and inspiring system and improved market environment would be utilized to accelerate the development of multinational corporations and global brands in domestic China.
At present, domestic toy industry is striving for brand development and in fact good achievement has been made. By the end of the first quarter of 2008, only Chenghai district of Shantou had embraced two China Well-known Brands, two China Top Brands, seven Guangdong Famous Brands and three Guangdong Top Brands. Moreover, the region is now fostering a group trademark of “Chenghai toy”.
With advantage in size, funds, human resource and quality, Hong Kong’s companies have better foundation to create and develop their own brands. Since domestic makers have geared up for independent brand, could Hong Kong investors sit still?
Key words for brand establishment
Developing brand is undoubtedly not a piece of cake. Great resource and time need to be invested to market research and image establishment. Makers from Hong Kong have made undeniable achievement in OEM and ODM business. I am convinced that, Hong Kong makers are most efficient, reliable and competitive manufacturers in the world. However, if we do not hesitate to move forwards, not make earlier attempt to rise to higher stage of value chain or not program strategy for domestic market, I am afraid that domestic market would be held by overseas and mainland brands. By that time, nothing would be left for Hong Kong investors.
So far as brand is concerned, three problems exist among Hong Kong toy makers. First, a small number of them have original brands, which get popularity in global market. But they have not gained famous trademark. Secondly, some large makers have strong power to design and produce toys, but the brands are owned by buyers. Finally, some makers nearly rely nearly all of their business on OEM, without own capacity in design and development.
How can OEM makers create their own brands? First, they must acquaint themselves with the general rule of brand operation of the industry. Following suggestion might be useful reference for those who intend to found original brands.
1. Research first
Carry out survey and research in domestic market first. Abstract effective information that would benefit your brand competitive ability. With study and analyses on these information, a competitive brand strategy with diversity.
2. Seek the right position
Before creating your brand, you must have a clear position for your product. You should make consumers associate your brand name with a specific image. Position of certain brand must be related to the unique concept of the product and only by this mean can consumers identify your products with others’.
3. Shaping your brand
Shaping of brand should be on the basis of market demand and consumers psychology. You may breakthrough conventional thought and discover new value of product in specific environment. A long-term brand strategy should be figured out. At the same time, in order to develop smooth marketing, you should take initiative to impress consumers with unique character of your brand, since first impressions are strongest.
Key words for brand promotion
In respect of brand promotion, I also recommend three key points.
1. Commercial and trading aspect (B2B)
In order to expand sales channel for Hong Kong brand, a Hong Kong pavilion is set up in professional trade event, for instance Guangzhou Int’l Toys and Gifts Fair. Integrating brands of high quality, this kind of event would offer opportunity for cooperation between Hong Kong makers and domestic representatives.
On the other hand, brand gallery would be encouraged in Hong Kong trade show, attracting buyers with local original design and brand series.
Invite domestic buyer group to Hong Kong’s trade. Besides purchasing opportunity, trade partnership can be established between the two sides.
Market research should be conducted in within a fix period, which would facilitate Hong Kong’s knowledge on interest and behavior of domestic consumers and Better market strategy can then be formed.
2. Consumer aspect (B2C)
Shopping festival for consumers is good choice, which can effectively promote Hong Kong brand and product image among local people. Moreover, market feedback can be traced directly.
Besides large event for general merchandise, individual industry should be considered. Publicity function can be held in busy shopping areas. In this respect, fashion show, product demonstration, game with bonus and coupon are good patterns to arrest consumers.
Hong Kong Top Brand Awards announced by Hong Kong Brand Development Council aims at fostering a golden fascia of “Made in Hong Kong, Originated by Hong Kong”. Consumers show great confidence on brands that gain the title, who will be more loyal to these brands.
3. Media aspect
Novel design, updated trend, excellent function, reliable quality and reasonable price…Impact of media will be adopted to impress bourgeois, who have increasingly greater purchasing power and greater sense on living, with these advantages of Hong Kong brands.
Above information can be publicized through advertisement on newspapers and magazine, bulletin, articles on publication as well as TV program. We can also invite media group to Hong Kong to interview with creator and designer of high-quality brand.
Besides introduction to brand, coverage can also display the latest trend, culture, art, foods, entertainment and development of other creative industry in Hong Kong.
Some of these activities are achieved by promotion organizations, such as Hong Kong Trade Development Council, Hong Kong Brand Development Council and The Chinese Manufactures’ Association of Hong Kong. However, finally it needs companies’ own effort. Promotion of brand will not see success in short time. Only when we add more new idea to design, function and package of product, can we maintain our competitive edge.
Before Hong Kong become a real city that “be creative to make fortune”, cultivation of human resource should have been enhanced as well. I believe, it is necessary for Hong Kong to strengthen the cultural, art, design and creative aspect in current education of primary and middle school, preparing for the future competitiveness of the city. I expect that, Hong Kong government can make a long-term policy to support the development of creative industry and cement the promotion on design and culture of Hong Kong in overseas and domestic markets. Furthermore, new regulation is expected to encourage original innovation and human resource development. All these will provide strong backing for brand growth of Hong Kong.
Writer’s Bio:
Jeffery Lam, member of C.P.P.C.C, member of HK Legislative Council, as well as president of Forward Winsome Industries Ltd
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