China mobile phone industry needs to enhance its brand influence

"The production and sales of mobile phones in China both rank the first place in the world, however, the weak brand influence and poor profitability bother the industry a lot," said Diao Shijing, the vice director with the electronic information department of the Ministry of Industry and Information Technology in China, at a news conference convened on May 28th.

Diao specifically pointed out that the competition model of the mobile phone industry has changed from the past single product and production scale race to the software and internet service contest. Through continuous innovative activities, Chinese mobile phone enterprises have achieved rapid growth during this period with its production and sales topping the world.

"But the brand influence of the whole industry with poor profitability is not strong," stressed Diao, adding that the industry is lacking of new ideas and the whole industry chain also has drawbacks. Currently, among the top ten mobile phone brands, the world’s leading brands have occupied more than 95% of the entire profits.

In response to this, the Ministry of Industry and Information Technology issued a Guidance on promoting the brand building of mobile phone industry in China in March, proposing recommendations on developing the industry in terms of both production scale and brand influence. [Chinese version is available on nipso.cn]