Policy paves new paths for old brands

Five central government agencies - Ministry of Commerce (MOC), Ministry of Culture and Tourism, State Administration for Market Regulation, National Cultural Heritage Administration and China National Intellectual Property Administration (CNIPA) - recently enacted the Measures on Building and Administration of Model Chinese Time-Honored Brands, explicitly setting rules for the general requirements, basic conditions, application/certification and dynamic administration of the building of these brands and sending a strong message on advocating innovative development of time-honored brands and consumption of them.

At a press conference featuring development and consumption of time-honored brands, according to an MOC executive, there are 1,128 national time-honored brands and 3,277 local ones, 701 of which have been in business for over a century since establishment. The oldest of them - Bian Yi Fang of Beijing boasts 607 years of operations. These long-admired shops span a couple of dozens sectors like food processing, catering, hotels, daily services. Amassing over 2 trillion yuan each year make them key participants in boosting consumption, upgrading existing sectors, taking the lead in cultural pride and national confidence. It is a common international practice to protect and support time-honored brands. In 2022, 1,300 companies celebrated their centennial birthday in Japan alone while half of Germany's Fortune 500 companies are in the same senior age group.

The MOC executive elaborates the three qualities of the Measures. First, it consolidates the authorities of several agencies. The Measures bring five agencies on board, which is easier for stressing both the historic value and cultural nature of the brands, and for facilitating both protection and development. Second, sustainable development is placed at a more prominent position. A time-honored brand has to be established prior to 1956 under the old rules, whereas the Measures sets 50 years of operations as the minimum entry. Third, a dynamic administration mechanism having both "listing and delisting" is formed. For those brands declining to fulfil their prescribed obligations and violating laws and regulations, incremental administrative measures in mandatory talks, rectification, suspension of privileges and even delisted from the official log would be invoked.

Lawyer says the change from a fixed cutoff time - 1956 to an ever-changing one - 50 years may inspire more companies to build up their own future time-honored brand, opening the gate for an infinite number of such brands. At the same time, those already certified to use the title - Chinese Time-Honored Brand - do not get a certification for good, meaning they cannot keep the title by simply living off their history and reputation. The Measures has a host of measures in place to monitor them and administer their privileges, aiming to purge those not deserving the title and make the title always living up to its name.

Developing time-honored brands shall focus on preserving strength and innovating, meaning solidifying the established "old" strength, cracking the "old" problems, defending the "roots" with the people at center, inheriting the "soul" of proven traditional culture, borrowing the "power" of advanced applicable technology, and accelerate innovative development. "Quality and heritage are the essence allowing time-honored brands to survive for centuries and stay strong. Even when they attempt to innovate, they could not afford losing historical and cultural heritage or their 'soul' might be gone in the process. The Measures provides that time-honored brands shall develop with the trend, preserve their strength and innovate, present economic and cultural value," Shang says.

Trademark is an important legal vehicle for time-honored brands. Innovation and development of time-honored brands cannot advance without IP protection. In recent years, the CNIPA has been working closely with other relevant agencies in examination/grant, company registration and administrative enforcement to heighten trademark protection. It is waging a new round of amendment of the trademark law in an effort to shape a favorable order for registration and use of trademarks and a market environment for fair competition through new credibility rules, stricter trademark administration and proprietary protection, which would definitely benefit the development of time-honored brands.

Phoenix

Phoenix, a brand in Shanghai, is more than 100 years old. In the last century, a Phoenix bicycle was once a hard-to-get merchandise. In a bid to rejuvenate the brand, Phoenix leans on technological innovation and upgrade of manufacturing capacity, leading to constant product, market upgrades and explosive growth at both home and abroad. Sold to Europe, the U.S. and Japan, its lithium-battery-powered bicycles are priced 10 or even dozens times over regular bicycles.

Gui Fa Xiang 18th Street

Known for its pretzels made after over 20-step sophisticated techniques, Gui Fa Xiang 18th Street was founded in 1927. For a long time, it has overhauled its equipment, packaging materials and marketing tools to give new vigor to this Tianjin-based food shop.

Nei Lian Sheng

Established in 1853, Nei Lian Sheng used to be a shoemaker for royal families and governments. Innovation is always in its blood. Colorful "rabbit welcoming new year" shoes and "rabbit feet" men's shoes were launched to celebrate this past spring festival.

Song He Lou

Song He Lou restaurant is a business card of Suzou thanks to its 260 years of existence. It has been picking up steps in innovation recent years, dishing out new recipes, deliveries, premade dishes and Suzhou-style desserts.

Pien Tze Huang

Heat toxicity and swelling are called "Huang" in Zhangzhou, Fujian. With one tablet of Pien Tze Huang, the "Huang" could be defeated. That is the origin of the brand. Its unique recipe and healing efficacy have made it welcome all over the world for nearly 500 years.