Famous brands lead city fortunes

By Zhao Ruixue | China Daily | Updated: 2008-05-06 06:59

Each year China's General Administration of Quality, Inspection and Quarantine bestows the title of "Famous Brand" on quality products that have found favor with consumers from both home and abroad - and Qingdao continues to contribute many that further enhance the fortunes of the seaside city.

"At present Qingdao is home to 69 Chinese famous brands, all of which boost its economic development," says Wang Dianzhang, head of Qingdao Municipal Bureau of Quality and Technical Supervision.

One is Qingdao Jifa Group, whose knitted garments and other products are exported to more than 20 countries and regions, including Japan, the United States and Europe. The group registered a 10 percent year-on-year increase in export volume in the first three months of this year.

Jifa has formed a total of 20 joint ventures with 17 overseas enterprises, including six Fortune 500 companies, which helped the group realize an export volume of $392 million in 2007.

Another is Doublestar, one of the oldest famous brands in Qingdao, a shining star in export of tires, shoes and machines that are sold to more than 130 countries and regions. The company recorded a 10.8 percent year-on-year increase in export turnover in the first quarter.

"Among the more than $20 billion in exports generated by local enterprises in 2007, 65 percent came from famous brands, which indicates that the brand economy has developed into a driving force for the city's economic development," Wang says.

Other famous-brand enterprises in Qingdao that have gained international recognition for high quality and value for cost include Kingking Group (Qingdao) that is a major supplier of candles and related products to 26 Fortune 500 enterprises including Wal-Mart from the US and Ikea from Sweden.

Twenty-four Chinese famous brands vitalize the economy of the Qingdao Economic and Technological Development Area. Customs statistics show they accounted for 70 percent of the area's $2.84 billion export volume last year.

Encouraged by the local government, nationally famous brands such as Tsingtao Brewery Group, Haier and Hisense have established more than 5,000 branches, outlets and manufacturing bases across the country.

More than 50 fairs are held in Qingdao every year to help local enterprises woo overseas buyers, especially those that produce famous-brand products.

Famous brands in Qingdao have become the most attractive enterprises for foreign investment, which at present cooperate with about 50 overseas companies including Mitsubishi Heavy Industries Ltd, DuPont and HP.

The international connection not only enhances development of famous brands, but also smaller local companies. More than 300 agreements have been signed between Qingdao enterprises and overseas companies.

The brand economy also promotes the city's technological development and competitiveness in the global market. Forty-one of the city's famous brand companies now have research and development centers, seven of which are State-class.

The brands range across more than 20 industries, including home appliances, electronics and machinery.

Total export volume generated by the famous brands increased 52 percent last year.