品牌 (PINPAI) is the Chinese word for “brand”. With its unique culture and economic growth, China is one of the most ideal markets for international brands. For similar reasons, China is also at the center of media attention in terms of economy, politics and performance. Unlike most foreign market, the concept of branding is relatively new. Thus, the process of building PINPAI is different.
For 10 years, from 2001 to 2010, the Chinese automotive industry has experience tremendous growth at a staggering rate of 25.3% per year. This rate is much higher than the average global growth and led to a competitive industry with more than 100 different brands from both local and foreign companies.
In 2011, China has ended its high-speed growth and entered a stage of single digital expansion rate. On the macro level, factors that caused the slow-down include the Chinese Central Bank raising its deposit-reserve ratio for six times in 2011, which increased the difficulties to finance certain enterprises. In terms of regulations, the Chinese government has ended its stimulus packages and introduced tightening limit for new vehicle licensing in major cities. The soaring fuel prices also influenced purchase intention among Chinese consumers. The importance of establishing a strong brand in times like these could not be more evident.