Hongbin Gu
Undelying Issue
Lack of manufacturing added value
26.5% is China’s industrial value added rate, while the global average for this figure is 35% and for developed countries it is 40% . –CNTV 2010
Lack of brand power
Branding capabilities are still at the low end of the scale and lack a brand image. “Why is the product quality the same as overseas, but consumer perception so poor? Because our country’s level of manufacturing and development does not reach a high level of credit with foreign consumers.” –Huang 2019
Causal Factor
History Aspect
According to Zhou(2021), the formation of luxury brands are based on the exclusive rights and benefits of the creation of class, the status symbols of the rich, and the self-realisation based on the emancipation of individuality.
PRC was founded only a few decades ago, Open policy was only forty years ago as well, and modernization is even a recent event, so it is objectively impossible to cultivate local luxury brands
Policy Aspect
According to Newsweek(2009), China’s weak protection for intellectual-property rights—the patents and ideas that are the solid core of any brand—makes it risky for companies to invest heavily in innovations that could make them famous worldwide but could easily be stolen by rivals at home.
Aker(2013) also points China’s government is in lack of motivation to branding development in past decades due to most powerful enterprises in China were transformed by national enterprise or government-own enterprise, which build their initial trusts toward customer by authority endorsement rather than brand.
Motiviation
China’s labour costs are only 4% lower than those of the US
Inherent patterns had to be changed！
China’s government is now importance on branding and manufactuing added value.
Made in China has the objective conditions to make quality, creativity and originality.
Solution
Based on theory from Yang(1997), there are 5 paths to increase added value:
Technology
This is my direction for making breakthrough because personally enterprise and individual can directly operate in technology innovation while other four paths may ask higher resources from external such as national influence, culture accumlation and so on.
Culture
Art
Originality
Brand
Brief
1. Create a faux fur, keeping the feature of animal-friendly, with advatanges of performance and environment like real fur.
2. Lab-grown Mink
Reference
Aavailable at：http://jingji.cntv.cn/20101025/103495.shtml (Accessd 28th April 2023)
Aavailable at：http://hk.ocmfa.gov.cn/chn/zt/gjfz/201603/t20160318_8123892.htm (Accessd 28th April 2023)
Aavailable at：https://www.sohu.com/a/312279024_786687 (Accessd 28th April 2023)
Aavailable at：https://www.newsweek.com/why-china-cant-create-brands-81989 (Accessd 28th April 2023)
Aavailable at：https://hbr.org/2013/06/will-china-catch-up-on-brandin (Accessd 28th April 2023)
Aavailable at：https://hkje.com/2021/05/31/%E5%91%A8%E5%A9%B7%EF%BC%9A%E4%B8%AD%E5%9B%BD%E4%B8%BA%E4%BB%80%E4%B9%88%E6%B2%A1%E6%9C%89%E8%87%AA%E5%B7%B1%E7%9A%84%E5%A5%A2%E4%BE%88%E5%93%81%E7%89%8C%EF%BC%9F/ (Accessd 28th April 2023)
Aavailable at：https://www.ndrc.gov.cn/wsdwhfz/202302/t20230228_1350277.html (Accessd 28th April 2023)
Aavailable at：http://www.news.cn/fortune/2023-03/31/c_1129481817.htm (Accessd 28th April 2023)