SPEECH BY MR LEE YI SHYAN, MINISTER OF STATE FOR TRADE AND INDUSTRY AT THE SINGAPORE BRAND CONFERENCE 2009 AT MERITUS MANDARIN HOTEL SINGAPORE AT 9AM ON THURSDAY, 26 MARCH 2009
Distinguished guests,
Ladies and gentlemen,
Good morning.
I would like to thank SBF for inviting me to be
part of this conference to discuss branding and what it can do for
our businesses.
Importance of Branding
Most of the time, as we speak of branding and
brand value, we think of a product and services. This is natural as
we observe on a daily basis, consumer’s decision in making
purchases taking into account of what they perceive as one brand
superior to another.
Sometime ago, I attended a talk by Carlos Ghosn,
then the new CEO of Nissan Motors.He said the company studied the
pricing strategy of Nissan cars versus competition in America. They
found out that comparing an almost identical car between Nissan and
Honda, feature-for-feature, consumers would only purchase a Nissan
car if it were US$1,000 cheaper. This price premium, or the lack of
it, he said, could be attributed to the brand premium his
competitors enjoyed.
Brand value can also be applied at the national
level. Let me illustrate with 3 examples:
·JurongIsland
·SuzhouIndustrial Park
·My meeting with
Mubadala 2 days ago
When
we speak of branding, many would immediately think of advertising
and managing communications campaign across geographies.
Communicating a brand creatively and efficiently is of course is
important and an art itself, and the process of execution deserves
great management attention.
However, I would also like to stress that good
branding is a promise made good. A well-defined brand often evokes
a set of emotive qualities that appeal to one’s aspirations.
Products and services that enjoy good branding speak to their
target customers. A strong brand also enhances and builds
purposefully crafted perceptions in the mind of its stakeholders,
thereby increasing mindshare, and eventually market share. It
promises customer loyalty and provides immunity against price
wars.
Beyond advertising, successful branding is built
through behind-the-scene processes, hard work, consistency and
finally validation by repeat customers. Customers will only begin
to believe your brand after many good
experiences.
Our
local companies will need to build their capabilities, step up the
quality of their products and services, and set their sights far
and wide in order to weather this economic downturn. This
groundwork must be firmly established now so that when the global
economy recovers, our companies would have a headstart to rise to
the occasion faster and stronger than their competitors. In order
for Singapore companies to leverage on the opportunities that are
to come, branding is essential for our companies to stand out from
the competition.
BrandPact
You cannot build a brand overnight, just before
you need it. Therefore, the Government has been promoting the use
of branding as a long term strategic business capability
buildup.
BrandPact, for example, is a joint initiative by
IE Singapore and SPRING to help local companies meet their brand
development needs.Since the launch of BrandPact in April 2005, over
6,000 companies have benefited from various BrandPact initiatives
which include training workshops and use of brand
assessment.Companies have in total received more than $17 million
worth of co-funding support for brand development
projects.
Even
in diffult times like this, SMEs should remain focused on brand
building. To assist our companies, BrandPact’s support has recently
been revised upwards to a ceiling of 70% of companies’ commitment
towards branding projects.With this increased funding, we hope that
more companies would step forward to make use of the programme to
build new strengths.
Conclusion
In summarizing the Top 100 Brands, BusinessWeek
has this to say: “Regardless of your view of the world, in good
times and bad, your brand is your company's most valuable asset.
Understanding how your brand creates value for you is key to
maintaining market leadership or establishing it in the first
place. We continue to see an increasingly sophisticated outlook on
managing brands, and a growing importance on understanding the
drivers of brand value”.
In conclusion, therefore, I urge our companies
pay serious attention to brand development as a strategic tool to
grow their business and bringing them international. May I also
wish everyone the best in your branding
journey.
Thank you.