In today’s highly developed information era, building a strong brand is more challenging than ever, especially in a vast and culturally diverse country like China. The difficulties go beyond just market competition—they involve adapting to regional cultural differences, varying levels of education, and consumer behaviors. While these factors are understandable, another critical issue lies in the lack of risk awareness and overconfidence among business leaders. Many companies fail not because they lack potential, but because they mismanage their growth strategies.
Take the example of the clothing and beverage industries. Brands like Qinchi Wine, HeMao Shoes, Sanzhu (Three Plants) and Huanghuang Cola were once household names, yet they have long since faded from the spotlight. Their downfall serves as a cautionary tale for Chinese entrepreneurs. These brands failed not only due to market changes but also because of poor management decisions and a lack of long-term vision.
One such case is Company A, once the "Shoe King" of Wenzhou, which had a solid brand foundation and good corporate reputation. However, many smaller companies that imitated its model eventually outgrew it. Meanwhile, brands like Aokang, Honghe, Yierkang, and others—though not as big—have become sources of pride for the people of Wenzhou, regardless of their size or market share. This shows that success isn’t always about scale, but about consistency and quality.
Another example is the Three Oral Liquids, which exaggerated their product benefits, misleading consumers and damaging public trust. Such practices not only harm customers but also undermine the credibility of the entire industry. Similarly, Chuanghuang Cola’s failure stemmed from an unrealistic ambition to compete with global giants like Coca-Cola and Pepsi, without considering the realities of the market. Companies must aim to grow, but they should do so with a clear understanding of their capabilities and market conditions.
Scholars have pointed out that the frequent marketing failures of many enterprises highlight the urgent need for better marketing strategies. These stories show that Chinese companies often lack a sense of security in their marketing approaches. Instead of building sustainable brands, many rely on high-risk tactics and impulsive expansions. As a result, numerous companies rise quickly, only to fall just as fast. Some manage to survive for a while, but make critical mistakes that ultimately lead to their decline.
The truth is, no brand can rest on past glory. To maintain success, companies must continuously innovate, maintain quality, and adapt to new trends. The shoe industry provides a good example: companies like Yierkang succeeded by offering affordable, high-quality products. In the wine industry, Zhangyu has thrived for over a century by emphasizing quality, innovation, and staying relevant to changing times. Its slogan, “Baiyu Zhangyu,†reflects a forward-looking vision rather than being stuck in the past. Similarly, Luo Zhi Wine’s motto, “Luo Zhi, look at the future together,†shows a commitment to long-term development.
The leadership of these companies emphasizes that quality is the foundation of their success. As one executive said, “We will never make bad wine, now or in the future. Without quality, there is no life for the company.†This philosophy has driven the rapid rise of many Chinese liquor brands. Beyond historical legacy, companies like Wuliangye and Maotai have continued to evolve through generations of innovation and progress.
In the electronics sector, Gree and Huawei have become global leaders by focusing on core technology and continuous innovation. Their success proves that quality, integrity, and forward-thinking strategies are key to long-term brand survival.
In conclusion, history alone cannot sustain a brand. What truly matters is technological leadership, excellent quality, honest service, and a spirit of constant innovation. Only by keeping up with the times and looking ahead can brands ensure their survival and growth. For businesses to thrive, they must embrace change, remain committed to excellence, and build a future rooted in trust and value.
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