China’s Famous Brands Report

Friday, January 5, 2007 5:21
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On December 22, People’s Daily announced that a report of “China’s Famous Brands” had been published by The General Administration of Quality Supervision and Quarantine (GAQSQ) and the China Famous Brand Strategic Development Committee .

Usually a report like this would be a list of some kind (value of brand equity, brand recognition study, etc) that would give readers some indication of what brand topped the list. It would be a guide to famous brands… as the name suggest

The report though in its 24 pages lists out famous brands over 91 product groups without an ranking or reasoning as to why they are “famous brands”.

There are a lot of no brainers as Haier, Sanyi, and Wahaha on the list, but the report is still far from what I would call complete as:
1) There is no basis or explanation of how these brands were chosen

2) The industries selected seem to follow heavy industry, agriculture, food, textiles, and few others…. some of the industries listed are really random (Industrial Sewing Machines, Chili Oil Seasoning, and Sun Umbrellas)

3) Some of the most important industries are not covered (banking, insurance, logistics, motorcycles, cars, and a host of others) and therefore it looks as if the study was based on industrial brands only

For investors, a review of this document could potentially offer some insight as to which companies could potentially be difficult to acquire now under the new rules. … although, this report would not have helped Carlyle unless they were looking to invest in Sanyi who are listed as a famous brand for concrete pumps (there is no listing for construction equipment).

In the end, this is a document that is useful in that it does identify what I can only guess are the national brands, but without an explanation of the methodology or some kind of quantitative measures attached to the names, it lacks real credibility.

the main importance of this document is that:

(1) maybe it will provide an investor with some insight as to who the players on in a vertical they are interested in

(2) this report shows just how ambiguous the branding issue is and will be when investors are told that they are not allowed to take ownership of China’s most famous brands.

Here is a partially translated document that we have put together that has translated the industry/ group names into English.

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