Time Runs Out for Honored Brands

Data from the Ministry of Commerce (MOFCOM) shows that China is home to 1,128 enterprises that produce national time-honored brands. The brands have on average been produced for 140 years. Nevertheless, according to a recent MOFCOM survey, 20 percent of the firms were operating at a loss, 70 percent are experiencing slow growth, and only 10 percent yielded good economic returns. A great majority of China’s time-honored brands are in private hands, and their business difficulties are generally attributed to the talent crunch, institutional problems, lack of clear brand ownership and weakness in innovation. Since 2017, MOFCOM and local governments have introduced a package of measures to protect and boost development of enterprises that produce time-honored brands. Experts argue that the spirit of craftsmanship and modern management concepts coupled with the inheritance of techniques will prove to be key for these enterprises to survive and prosper.