The Corona crisis is intensifying the Chinese quest for strong brands. In order to increase the consumption of the population and stimulate the weak domestic demand, China now wants to politically promote and accelerate the development of well-known and high-quality Chinese brands. These are intended to help increase the influence of Chinese products and services on the domestic market and thereby promote the further development of the country.
At the online event 2020 China Brand Day, China’s Prime Minister Li Keqiang formulated the key points of the new policy: implementing the country’s innovation strategy, promoting innovative companies and ensuring the quality of branded products and services. To this end, brand awareness in society is to be increased and companies are to be guided to maintain the spirit of professionalism and craftsmanship so that more famous brands are created.
This will increase competition for European brands in China. Chinese brands are reacting very quickly to the changes in customer behavior brought about by Covid-19 – in B2C as well as in B2B. They are adapting their strategies, repositioning themselves and developing different messages. Many of them are shifting marketing and sales to the digital space and are focusing more strongly on social media, e-commerce and online to offline (O2O). Internet platforms, live streaming and WeChat groups are also playing an increasingly important role in industrial goods. European brands must follow them if they do not want to lose ground in China.
Source: Xinhua
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