Chinese researchers have developed a new tool to standardize the evaluation of Chinese domestic brands.

The index, called the CBI or Chinese brand competitiveness index, aims to reflect and gauge the overall competitiveness of China’s domestic brands, and is the result of research undertaken by the Chinese Academy of Social Sciences (CASS) in conjunction with the China Marketing Association.

Zhang Shixian, a CASS researcher and president of the Economy and Management Publishing House, started the research in 2008, and its findings were released at the launch of a brand management conference held on August 15, 2011, in Beijing.

The press conference on CBI or Chinese brand competitiveness index,  was held on August 15, 2011 in Beijing.[Photo/prodvided for Chinadaily.com.cn]

The comprehensive index has three layers of comparisons, with the focuses on financial performance, market performance, potential development and customer loyalty, said Zhang.

It also includes 18 parameters for the second-layer, and 72 for the third one, relevant to business turnover, net profits, net assets, scale of production, efficiency and profit margins.

"This system is based on extensive statistic gathering and quantitative research methods, and has drawn upon well-practiced international assessment standards." According to Zhang it is the first time such research has been applied in a Chinese context.

The book on CBI thory and practice compiled by the research team from the CASS.[Photo/prodvided for Chinadaily.com.cn]

CASS vice president Chen Jiagui said at the conference such research into a credible evaluation system for brand competitiveness was vital for the country’s economic development.

"China has become the second largest economy in the world, but Chinese brands are still immature…The release of the index will help to direct brand building for Chinese enterprises.”

Zhang said the overall competitiveness of Chinese brands can now be measured objectively and their future development predicted based on the CBI.

The CBI has already been put into practice in China’s real estate as a tentative research tool, Doctor Li Haipeng, a member of the CASS research team said.

"The CBI index for the housing market stands at 51.55, which signifies the industry is still at the stage of scale competition and its overall competiveness is still quiet weak,” explained Li.

CASS will initiate a large-scale evaluation program on the brand competitiveness of around 3,000 listed and 7,000 non-listed Chinese companies, it was reported at the press conference, and this program will last from mid-August to the end of September. The final results of the evaluation will be made public by CASS in the form of a blue book report in October in Beijing.