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2023

Against the international market, what big things have Chinese brands done in the past ten years?

High-end strategy has become one of the effective ways for Chinese brands to enhance their global influence.

More and more Chinese companies are reaping global influence. Dajiang will occupy more than 80% of the global unmanned aerial vehicle market in 2022, Huawei will rank first in the global ranking of essential patents for 5G standard, while wine brand Changyu recently topped Brand with the highest score Finance "the world's strongest wine & champagne brand" in 2023"

High-end strategy has become one of the effective ways for Chinese brands to enhance their global influence.

However, different from the internationalization path of developed countries in Europe and the United States, the process of Chinese companies shaping their influence internationally is often upstream. They must continue to enter a more mature consumer market and compete fiercely with many overseas classic brands. Initially, the enterprise may gain a place with "high performance and low price. But this is not conducive to the long-term development of the brand in the global scope, which also makes high-end become the inevitable choice of many Chinese enterprises. The electronic consumer products represented by Huawei and DJI are typical representatives among them, and the same is true throughout the history of wine development. In the wine world map, French wine was once worshipped by all countries. Until 1976, a blind tasting in Paris, France, French wine was defeated by American wine. This blind tasting meeting was also called the "Paris Trial" by later generations. It marked that outside France, wine products from the United States and other countries began to break the mental monopoly of French wine on high-end products, and in the following decades. Successfully open up the market and form a "New World" wine faction that competes with France and other "Old World" producing areas. Similar stories have also appeared in Chinese wine brands. In recent years, Chinese wines that were previously taken lightly by the West have become the focus of Western media reports. For example, after tasting Changyu's Longyu wine and French top-grade wine, senior wine critic ManfredKlimek asserted in an article in the German newspaper Le Monde: "by 2030, some of the best red wines in the world will come from Chinese wineries, with Chinese characteristics, made by Chinese winemakers themselves. He believes that Longyu is the first high-end story of China's top-grade wine Longyu, which can be truly called local flavor, and has been around since 2006. This year, Zhang Yu entered the eastern foot of Helan Mountain in Ningxia and began a trial planting and repeated verification for more than ten years. One was to plant grapes and make wine separately in each small plot, and the quality of the plot was judged by the quality of the wine. Finally, 25 A- grade grape planting areas were selected to become the exclusive planting base of the winery. One of the most representative is the annual flowering period of Qingtongxia Ganchengzi production area. The strong wind blows down about 85% of the grape flowers. Only 15% of the tough grape flowers can set fruit successfully. Each successful fruit can get better sunshine and nutrients. This growth of the grape ear loose, small, thick peel. This increase in the proportion of grape peel makes the phenolic substances and aroma substances in the wine more intense during processing. From the selection of land, planting grapes to brewing, it took a long time to work, and finally the dragon edict, which was regarded as the pinnacle of Zhang Yu, was brewed. When the village was opened in 2013, 80% of Longyu's products were exported to the high-end markets in Europe and America. Over the past 10 years, Longyu has won more than 150 world awards, becoming the Chinese winery with the largest number of Michelin and black pearl star restaurants in the world. Zhang Yu's Afeibao, on the other hand, scored 94 points in 2020.
The good results ranked "TOP3" in the world's best state banquet wine blind tasting competition.

The global influence of the brand depends on the ability to have value output in the world, which requires the enterprise to achieve the global layout of production research and development, product technology and sales channels. Robert Koopman, chief economist of the World Trade Organization, once said that the vertical extension of each value link in the global value chain and the horizontal reorganization of value links between different value chains will form a global value network, which can promote a more systematic and efficient globalization process.

A typical case is that in recent years, many Chinese companies have built R & D centers in many places around the world. On the one hand, they can develop products more in line with local needs, and on the other hand, they also focus on global R & D advantages. This is the vertical extension of the value link. Large enterprises such as IBM adopt a decentralized, multi-headquarters model to efficiently utilize the advantageous resources of the industrial chain around the world, such as the global service delivery center in Sao Paulo, Brazil, the relocation of procurement headquarters to Shenzhen, China, and the human resources headquarters in Manila, Philippines, etc. This is the horizontal reorganization of the value link.

Ten years ago, Changyu started the process of globalization, successively in France, Spain, Chile, Australia and other important wine producing countries, the acquisition of 6 wineries, the world has 250000 acres of grape base. Behind this data is not only the expansion of production capacity, but also the enrichment and upgrading of channel capacity, technical capacity and human resources.

As Sun Jian, general manager of Changyu shares, shared: "If you don't go out, don't enter the international market competition, and don't force yourself to improve, the company will rest on its laurels. Thanks to the global layout, Changyu can fully integrate the global superior resources, and obtain not only high-quality raw materials, but also first-class talents, superb brewing technology and diversified market channels to realize the horizontal series of value. For example, in terms of technical exchange, Changyu has initiated a system of cross-border rotation of winemakers. Taking advantage of the climate differences between the northern and southern hemispheres, winemakers from 14 major wineries in the world rotate across countries during the local off-season, exchange and learn in depth, improve winemaking skills, extend the value chain in key links and forge their global competitiveness.

The spread of brand influence on a global scale is often inseparable from the blessing of culture. For example, American brands such as Nike, when they are mentioned, people will think of the American life culture that emphasizes personal value. German brands such as Bosch and Siemens are often linked to "exquisite craftsmanship" and "quality assurance". The process of Chinese brands going global is also accompanied by the globalization of Chinese culture. Chinese brands are often in a weak position in the international market where competition is fierce and experts gather. Active voice with the increasing influence of Chinese culture is an effective measure for brands to tell good stories and amplify brand influence.

At the beginning of 2022, Long Yu launched a new communication proposition: "Taste the world and love China more". This is another microcosm of Zhang Yu's brand building and world influence through Chinese cultural communication. Sun Jian said: "Chinese symbols are the key to distinguishing your products from those in other regions." Chinese culture helped Changyu to go overseas, and Chinese culture also spread. It is a mutually reinforcing process. Long Yu is a model of the combination of Changyu and Chinese culture. Its wine label combines official script, seal, calligraphy and other Chinese elements, generously and confidently showing the oriental charm and aesthetics to the world.

In addition, cultural stories do not come from tradition alone. On the basis of giving full play to the advantages of corporate brand and history and culture, Changyu took the lead in laying out a new model of integrated development of production and tourism of "wine tourism", organically combining museums, wineries, ecological gardens and wine production, forming a grape planting, wine brewing, The whole industry service chain integrating cultural communication vividly tells the ingenuity and story of Changyu and Chinese wine.

Last year, for example, Zhang Yu co-hosted China's first vineyard concert with violinist Lu Siqing. The scenery of the wine estate and the melodious violin playing complement each other, bringing the audience an elegant experience of wine culture. In June of this year, the "Changyu 1892" experience hall opened at Qingdao Airport, allowing more consumers to experience the customs and cultural charm of Chinese wine and brandy. In addition, Changyu has also built dozens of city experience halls across the country to promote Chinese wine and brandy culture into daily life.

From museums, wineries to theme restaurants and city experience halls, Changyu continues to build brand experience positions, while its experience forms also keep pace with the times. At present, Changyu has 7 national 4A-level scenic spots and 7 wine-themed restaurants, creating a wine-themed cultural tourism route from east to west, which has become an important channel for people to contact and understand wine culture. And
Changyu also in this kind of business to obtain good growth at the same time, further spread the brand influence.