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Happy Formula of Chinese Brand Globalization

2013-06-27


With 80.585 billion yuan brand value, Tsingtao beer won the first brand title of Chinese beer again

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Awarding ceremony

 

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Tsingtao beer

 

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Young people were enjoying Tsingtao beer

 

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Tsingtao beer was in Canada

 

It was reported that " 2013 China 's 500 Most Valuable Brands List" was released in Beijing on June 26, 2013. Tsingtao beer brand won the first brand of Chinese beer again with total brand value of 80.585 billion yuan.

 

Tsingtao beer official flagship store on Tmall was just launched online on June 25, 2013- one day before that releasing day.

 

According to the record, the Tsingtao brand value increased 7 times in last ten years. As stated by 2012 "Harvard Business Review ", among the 2347 listing companies with over $1.00 billion value, only 10 ones kept 5% increase in last ten years. Tsingtao beer was the exclusive Chinese company with the longest history. Though Chinese beer industry was with a slower increase speed of 3.06% in 2012, total sales volume of Tsingtao beer was amounted to 7.90 million KL with an increase of 10.48%, accounting for 25.782 billion yuan, up 11.33%. In the first quarter of 2013, 1.829 million KL Tsingtao beer was sold out, up 11.7%. Total sales income was amounted to 6.312 billion yuan, up 12.7%. Total net profit was 510 million yuan, up 11.2%. In the last five months, as the first Chinese mainland company listed in HK, Tsingtao beer H Shares’ price increased to a top level, which showed all investors’ confidence on Tsingtao beer. Both first mention degree (the percentage of consumers’mention rate without any hint-the top level of a brand’ awareness) and total mention degree without hint were kept ranking first place in Chinese market.

 

Performance is the best endorsement of the brand. Figures show the great driving force of the brand. "Matthew Effect" of Tsingtao beer brand value has gradually emerged.

 

Creating more joy for consumers with interactive activities

Wang Lijie was attracted by a Weibo entitled with “the games we watched, the Tsingtao beer we drank and the guys we shared joy in last days”when he watched 2012 European Cup. He invited two classmates to join in this activity and enjoyed a good time with his friends in that summer.

 

When Lifeng delivered a Weibo on his trip to Guangdong Shaoguan Tsingtao Beer Festival by @Tsingtao beer, all fans of Tsingtao beer could share his images with other friends at the same time.

 

As a new social media, Weibo becomes a new method for the communication among Tsingtao fans. They called such online communication of Tsingtao beer festivals around China as “Air Beer Festival”.

 

Besides “Air Beer Festival”, more interactive activities were handled out by Tsingtao Beer to upgrade its experiential marketing.

 

CBA games, basketball cheerleaders, winemakers’blogs, London or German trip, online chatting, movie promotion, and many different ways were available for Tsingtao fans to find their favorite brand.

 

During 2012 London Olympic Games, a new technology called AR-Augmented Reality was applied by Tsingtao Beer to compose the on-site participant’s image with Olympic champion video, which sharing a wonderful atmosphere of enjoying time with champions.

 

Thanks to these different platforms, people from worldwide are capable to enjoy Tsingtao beer and enjoy their happy time.

 

As stated by some researchers that over 420 million netizens would be available in China in 2012. Followed with the new promotion model of product sales, brand communication and consumer experience, Tsingtao beer brand value was increased accordingly under such internet era.

 

Creating exclusive happy asset for consumers with innovation

In last 110 years, Tsingtao beer kept its technological innovation on upgrading the product’s quality and perfecting product’s categories. Much more attention was placed on the research, development and manufacturing processes.

 

It was learned that He Jianxin was selected as a consumer judge from an on-line interactive activity to attend the tasting activity of“consumers’ favorite Tsingtao beer”. He was authorized to judge and rate all the products and confirm the best winemaker of Tsingtao Beer Company

 

Because of the full respect of consumers’ comments and its 110-year experience on beer manufacturing, the development of its new product was accelerated rapidly.

 

In recent years, around 10 different tastes of Tsingtao beer were issued to market gradually to meet the demands of different consumers.

 

Wang Ruiyong- Vice CEO and Marketing CEO of Tsingtao Beer Company stated on the conference that: “Brand is not only a company’s assets, but the assets of consumers as well. Tsingtao beer is aim at creating the happy asset to all the consumers with innovations and help them to enjoy a happier life.”

 

Tsingtao beer official flagship store on Tmall was just launched online on June 25, 2013, which would be more helpful to enhance the online communication between Tsingtao beer and consumer.

 

Upgrading global influence of Chinese brands with brand driving force

It is invisible for the strength of a brand, but it really plays an significant role in a brand’s further improvement, so does Tsingtao brand. Due to the upgrading of brand, Tsingtao beer is with better brand driving force.

 

A Tsingtao brand bar is famous in a street of Bannister, UK. Ben- the owner of the bar opened this bar for the only reason that he likes Tsingtao beer very much. “Everyone who has ever been once with tasting of Tsingtao beer here would order again next time and becomes big fan of Tsingtao beer.”Ben said gladly.

 

Such stories are often occurred in Tsingtao . Made in China is still difficult to get rid of the bottom of the image of today's inexpensive , but high-end Tsingtao , the mainstream image in the global market has its own brand influence should not be underestimated .

 

It is not an exclusive story as Ben told to the reporters. Tsingtao beer forms a high-end and mainstream image worldwide and is accepted by global fans.

 

Dr. Jean -Claude Larreche who is the professor of INSEAD, France stated that the most famous brand of China was “Made in China”. But this logo often makes people feel the product is cheap. Now many more Chinese brands as Air China, Lenovo, Tsingtao, and etc. were approved and accepted in global market for their high-end quality.

 

Till now, Tsingtao beer has been exported to over 80 countries and regions of the world, such as U.S.A., Canada, UK, France, Germany, Italy, Australia, South Korea, Japan, Hong Kong , Macao, etc. It is the most famous Chinese beer brand worldwide and the one with largest export volume as well. Tsingtao beer kept the first place as the top imported beer brand from Asian market in U.S.A, Mexico, etc. According to the record, the sales of Tsingtao beer in the United States mainstream convenience store and Wholesale Club increased 22% and 20% separately. In Australia’s mainstream market, it increased 3.9%, especially for Coles- one of the biggest supermarket chain store of Australia was with an increase of 141%. In UK’s mainstream market, it increased 30%.

 

Li Guangdou- Chinese famous brand strategy expert said: “The measure of a country’s competitiveness is the amount of its international brand. Tsingtao beer is one of the Chinese brands with most influential international fame and its upgrading of value is becoming a symbol of Chinese brand.”

 

Showing the future of Tsingtao brand in the age of big data

When reporters opened the theme website of Tsingtao beer, a collection contest named “showing future” was being carried out hotly to collect Tsingtao aluminum bottle designs online. Many consumers actively took part in the activity and submitted their innovative designs accordingly.

 

Chen Gang- Vice President of Journalism and Communication Institute of Peking University stated that Tsingtao beer kept to upgrade itself with good quality and continuing innovation, so it was with great breakthrough on marketing and became the leading brand of Chinese beer industry. Now it was also an international name card of Chinese high quality brand. This collection activity launched online was for the future consideration of Tsingtao beer and its consumers.

 

Currently, the biggest change for marketing environment was the internet industry was changing from traditional web portals to individual portal. All companies need to follow this change to adjust itself and meet the era’s demand, so it would keep stepping ahead. Tsingtao beer kept this way and improved itself on practical condition to set the example to other Chinese companies.

 

There is a saying: the only constant is change itself. To lead the change would be probably the core reason why some everlasting companies can keep young and competitive. The 110-year old but still young Tsingtao beer company shows this young power worldwide and lead Chinese brand to compete in this changing world.