Shanghai, March 31 (Xinhua) (Reporters He Xinrong and Jia Yuankun) Supply-side structural reform is the highlight of this year's economic work. How to bring back the consumption power lost overseas to China with high-quality goods and services? Recently, reporters visited a number of consumer goods companies to find ways for time-honored brands to reshape their glory.

How can national brands respond to the "large wave" of foreign goods

Import tariffs have been reduced, multiple free trade agreements have been signed, and cross-border e-commerce platforms have exploded... Today, Chinese residents enjoy unprecedented convenience in consumption, and "buying the world at home" has become a reality.

The massive invasion of foreign goods will undoubtedly squeeze the living space of national brands. Statistics show that in Shanghai, the "Chinese Brand Capital", 30% of the more than 160 well-known brands have disappeared and 50% have declined.

"To be honest, the pressure is great. Just look at the speed at which Korean cosmetics open stores in China." Xie Wenjian, chairman of Shanghai Jahwa, a local daily chemical leader with a history of more than 100 years, said. The cosmetics industry that Jahwa focuses on is a field where international brands gather. In order to break through the siege surrounded by powerful enemies, Jahwa chose the "Chinese culture brand".

Xie Wenjian told reporters that when consumers talk about French brands, they may associate them with luxury; when talking about Japanese brands, they may think of refinement. The inherent positioning of Jahwa products is traditional Chinese medicine, and the packaging uses Chinese elements with fashionable charm such as "Tai Chi Liang Yi", striving to tap consumers' feelings for Chinese culture.

Coincidentally, the shoe brand Huili also seized the retro and nostalgic emotions of consumers and achieved transformation. "During the 2010 Shanghai World Expo, Huili opened its first flagship store on the old factory site. Unexpectedly, customers came in an endless stream and even lined up to buy shoes. Later, Huili shoes, which withdrew from the first-tier business district due to poor sales, re-entered the central area shopping malls." Gui Chenggang, secretary of the Party Committee of Shanghai Huili Shoes Industry, said.

To retain consumers, it is far from enough to appeal to national sentiments. To improve the "stickiness" of a brand, quality is still the key. Gui Chenggang said that R&D is not only present in high-tech industries, but also in consumer products. "For example, there are three production processes for rubber shoes: vulcanization, cold bonding, and injection molding. Huili is conducting research on material technology and hopes to achieve a breakthrough."

Shanghai Jahwa has hired Japanese experts to participate in the development of new products and invited Korean engineers to participate in the design of new factories. "We must be good at achieving the best allocation of resources on a global scale and provide Chinese consumers with a cost-effective experience." Xie Wenjian said.

How to capture the hearts of young people in the Internet era

The long history of time-honored brands is sometimes a resource and sometimes a burden - especially for the "post-80s" and "post-90s" consumer groups, how to avoid the impression of brand aging and keep up with their taste changes is a huge test for national brands.

Forever brand bicycles were once one of the must-have items for people to get married in the 1970s. Chen Haiming, deputy general manager of Zhonglu Co., Ltd., the owner of the Forever brand, said: "The automobile era has thrown bicycles into history, but now green living and low-carbon travel have created opportunities for us again. This is a good opportunity for the old brand to reshape." Based on this concept, Zhonglu Co., Ltd. has successively planned a number of creative activities such as bicycle laboratories in middle schools and free switching between electric vehicles and bicycles. On the Internet, the Forever C personalized customized bicycle, which costs up to 8,000 yuan, is also quite popular. Shanghai Jahwa's Liushen series is one of the more well-known daily chemical brands in China. In recent years, China's consumption growth has slowed down, which has caused great headaches for the daily chemical industry. Ye Weimin, general manager of Shanghai Jahwa's mass consumer products division, found that outdoor exercise has become a fashion among young people today. "In response to this new demand, we have developed a small package series of Liushen, which has a double-digit growth every year." Combining the Internet with product research and development has become a feasible path for the revival of time-honored brands. Shanghai Jahwa and Alibaba have cooperated to set up a digital marketing department to collect various data online and accurately "portrait" consumers. When new products are launched, they are first tested online and then continuously improved based on feedback. Accurate market positioning opens up sales channels for products.

What can the government do to protect and support old brands?

There is no doubt that time-honored brands embody the feelings and memories of a generation, and are also one of the cornerstones of China's manufacturing "from big to strong". What role should the government play in protecting and supporting old brands?

"It's not about giving money or land, the key is to create a market environment of fair competition." Many company leaders called for this in the interview. For example, due to the existence of local protectionism, some regions do not protect intellectual property rights enough. Ge Junjie, vice president of Bright Food Group, said that Bright's White Rabbit milk candy is famous in China. For a while, White Rabbit ice cream appeared in China, and the pattern was exactly the same, which was ridiculous. Shanghai Jahwa's Liushen Floral Water has the largest market share, so some third- and fourth-tier cities have piggybacked on "Dashen" Floral Water, and it takes time and effort for companies to protect their rights.

"Although domestic brands are working hard to improve their quality, it is regrettable that some Chinese shopping malls have selective discrimination and always reserve the best stores and counters for foreign brands." Xie Wenjian said.

Gui Chenggang said: "Some people say that the first floor of department stores now mainly sells foreign brands, the second floor mainly sells joint venture brands, and the third floor sells local brands. From the government level, promoting the construction of Chinese brands is mainly to create an atmosphere so that everyone can compete under fair conditions."

In addition to creating an environment, the ongoing reform of state-owned enterprises has also provided opportunities for the revival of old brands. More than one company leader mentioned that in order to cultivate local brands, state-owned enterprises need a new assessment system, which should not only assess sales and profits, but also the soft power of enterprises. "If you invest 100 million yuan to build a factory and install equipment, most people have no objection. But if you use it to build a brand, some people think it is unreliable."

For those old brands that have been idle for a long time, far away from the market, and underinvested, Ge Junjie believes that it is possible to study the establishment of a time-honored brand trading market to stimulate brand vitality through market-oriented operations so that they can be better inherited and promoted.