Sanyo Electric, a renowned electrical appliance manufacturer in the East, has long been an OEM for other brands such as Panasonic, SONY, and Hitachi. Relying solely on its advanced technology and quality, it has achieved satisfactory income through contract manufacturing. However, it has neglected the construction of its own brand and thus lost the opportunity for further development. By the time it realized the problem and was ready to catch up, The market has ruthlessly abandoned Sanyo, which has been bought by Panasonic from various places and turned into a low-end brand under Panasonic, leaving people sighing endlessly. The example of Sanyo's case serves as a warning to Chinese socket box companies: It is not acceptable not to pay attention to quality, and it is also not acceptable to only focus on quality and concentrate on manufacturing for others. Quality is easy to imitate and surpass, but only brand is where the core of a company's competitiveness lies. When discussing China's socket box manufacturing industry, international marketing master Milton Kotler pointed out, "When high-quality products enter developed markets, the control over quality and price is half over. Chinese companies need to obtain a 30% profit from brand rather than a 10% to 15% market processing fee." There is no doubt about the significance of brand asset accumulation. The brand products or services of socket box companies can be sold at higher prices and still have extremely strong competitiveness. This is the appeal of building a brand. Augustus experts believe that the utility of the total brand assets of socket boxes is to provide more value to the company, increase the speed and effectiveness of marketing activities, enhance the brand loyalty of the client company, and increase the price/profit of products and services. In the actual situation of the matter, during the research on the brand of the maintenance power box company by the Augutt Institution, it was found that the power of brand has now been utilized to a great extent by many abnormal oB (company-to-company) multinational companies in the market. Their belief in brand power and brand management has far exceeded the traditional consumer goods market that created this rule. In the list of the world's 100 most valuable brands selected by the Economic Activity Weekly of the United States in 2006, the consumer goods brand Coca-Cola ranked first, while Microsoft ranked second, IBM ranked third, General Electric ranked fourth and Intel ranked fifth are all brands of maintenance power boxes. Other well-known brands of maintenance power box companies include fluid control technology giant ITT, electrical giant ABB, construction machinery giant Caterpillar, Ingersoll Rand, fuel and chemical giant Shell, chemical giant BASF, Dow Chemical, DuPont, Bayer, tire giant Bridgestone, Michelin, solid and excellent, packaging giant Tetra Pak, etc. These multinational maintenance power box companies with substantial brand assets and strong brand influence have achieved a large market share and profits worldwide. They have more opportunities for economic cooperation than ordinary companies. Achieve higher and longer-lasting product premiums; Achieve more effective marketing communication; Achieved a higher market share; Recruit more talents to join; Attract the attention of more investors; They have maintained long-term competitiveness and predictable long-term returns from beginning to end. After a long period of accumulation of brand assets with high usage rates, industrial socket sockets have more and more loyal customers, reducing the risks of long-term maintenance. To reduce the extent to which the company is affected in competitive marketing activities; It can also be easily resolved when encountering a crisis similar to the "DuPont Teflon Incident".
At the moment when they firmly control the upstream of the industrial chain by relying on the driving force of their brands, those companies without maintenance power box brands can only struggle in the downstream of the industrial chain or become OEM laborers. What's more, some are easily swallowed up by brand giants.
In China, many Chinese companies with weak brand asset accumulation have been bought in from all over by those brand giants. During the buying talks, Chinese companies have no more say or capital to raise prices at all. In the bearing industry, Timken Corporation of the United States purchased Yantai bearings from various places, Torrington purchased Wuxi bearings from various places, and FAG Group of Germany purchased Northwest bearings from various places. In the field of diesel engines, the German Bosch enterprise has purchased Jiangsu Wuxi Weifu from various sources. In the lubricating oil industry, Shell has acquired dominance from various sources. In the field of construction machinery, the US Carlyle Group has purchased XCMG from various sources, Caterpillar has bought Shantui from various sources, and Kobelco has bought Chenggong from various sources... .