Research On The Brand License Mechanism Of The Circular Economy

Scale benefit of the industrialization is the key to way for the modernization. China has finished the stage from agriculture to industrialization by investment of resources, environment, labor, overseas investment and exchange rate. However, the economic aggregate cannot keep sustainable growth as the increase of cost and the limitation of environment resources. Therefore, the development of circular economy and the establishment of recycling society is very imporant in the future, which is also an important way to implement sustainable development strategies.The theory and the practice of exploring the cycle of economic development have made some achievements in China, but there are still many issues restricting the further promotion of circular economy. Existing literature emphasizes the importance of the development of circular economy, and pointed out the problems in it. This paper organizes the liteature from six aspect including ecology, market economics, technological innovation, industrial chain, financial support and government intervention. They focus on the technological innovation of the firms, but haven’t solved the problem of how to run the firms which have mature technology in the market. Some recycling models have been successful in technology but fail in market. The key point for recycling economy is how to make this kind of model works. Therefore, the problems researched in this paper including:firstly, what is the internal mechanism of the circular economy? Secondly, how to run the firms which have mature technology in the market?Around these core issues, this paper tries to find the core problems which restrict the devolopment of the circular economy under the framework of choice cost analysis paradigm. The cost of circling firms is higher than the non-circling firms, but thoes products have homogeneity in the basic function. If the circling firms raise thire production’s prices, its market demand will be reduced; if they consistent the prices with the non-circling firms, they could not run with the high cost. Therefore, how to win the consumers’votes with a high price is the important element to continue the cycling system. The cycling firms’mission is how to get the pricing power of their proction. In other words, how the firms could increase sales at a price above the market equilibrium.Trade associations play an important role in the technical guidance and services in the devolopment of circular economy. The trade associations develop rapidly in China at present. There are many trade associations in every industry, but a few of them could help the development of the industry. Our trade association has exposed many problems. What is the essential reason for the not liablity of the trade association? Moreover, how to run the trade association sucssfully?This paper focuses on the above issues, diveded into three parts as a whole. The first part is the question raised, including the introduction and literature review. This part mainly shows the quesetuins and introduces the research background and literature, pointing out the shortcomings of the existing research. This paper suggests that there are three cycles in a recycling model with the brand license as the core. Meantime, this part introduces the concepts and assumptions involved in this paper. This part includs the first chapter, which is introduction, and the second chapter, which is literature review. The second part shows the explanatory modles, consisting of the brand licending model and three-cycling model. This part mainly analyzes the condition of the two models. This part includs the third chapter, the fouth chapter, the fifth chapter, and the sixth chapter. The third part is the practical application of the theory, which is the seventh chapter. This part proposes some new directions and ideas for the curciling economy under the guidance of the theoretical model, including research on the brand license of the recycling use of crop straw, sustainable development of river basin ecological compensation, and recycling use of large public facilities. At the same time, this paper puts forward some targeted development proposals on the basis of the analysis of the problems. Finally, the eighth chapter summarizes the full paper, and gives the future research directions.This paper focuses on the sustainable development of the curcling economy, which introduces the brand license into it. This article points out that there are three cycles in a recycling model:the material recycling, the value recycling and the brand recycling. The main conclusions include the following three aspects:Firsty, this paper analyzes the material recycling, the value recycling and the brand recycling under the assumptions of rationality, consumers’free choose, and consemers prefer to the emotional profit as the matiaral profit is the same. The material recycling is the technological precondition; the value recycling is the source of profits; and the brand recycling the important way for premium. This paper mainly research on the value recycling and the brand recycling, since the material recycling is about the technology and processes. This paper points out, the important way to realize the value recycling is that reduce the consemers’choice costs from the proper brand construction stratagies, and thus obtain a higher brand premium. In fact, there exists serious contradiction between the fast growth of the economic brought by the scale benefit and people’s need for ecological civilization. As every industry has many competitors, the best way for the shift in the mode of economic growth is change from element investment to brand premium. The brand premium effects the energy consumption per product of the industrial enterprises. Firms could get high brand premium by correctly evaluate the brand credit degree and suitable strategies, which helps firms decrease the energy consumption per product. The important way to realize the brand recycling is the brand license. This paper analyzes the behaviours of the licenser and licensee, and proposes the conditions for brand license.Secondly, this paper analyzes the brand license mechanism of the curciling economy trade association. As a form of social self-organization, trade associations operating rules constrained by the autonomous organization run rule. Therfore, this paper analyzes the conditions for running the qutonomous organization effectively, and proposes suggestions to make sure the inner supervision could work well. Meanwhile, Base on the principles of brand economics, this paper shows the paradox existing in the trade associations now:the associations pursue the number of members as much as possible because their income comes from the membership fees; on the other hand, the inner supervision requires limited members. Finally, this part researches the curciling economy under the guidance of the theoretical model, including research on the brand license of the recycling use of crop straw, sustainable development of river basin ecological compensation, and recycling use of large public facilities. Taking the Shandong Quanlin Jiayou organic fertilizer Co., Ltd as an example, this paper provides many suggestions to the firms. Only the material recycling, the value recycling and the brand recycling achieved, the recycling use of crop straw could develop sustainably. For the Valley Ecological Compensation, this paper advances a new ecological compensation mechanism centered on brand license. By registering a trademark, branding and licensing it, the protection zone could develop rapidly. The second transformation for the collective mark can reduce the dependency for the resources, which could bring steady income to the people in the ecolofical zone. In the research of the recycling use of large public facilities, this paper proves that the operator could win greater market demand and richer profit margins if they take the models of free use and charged for the added services combined. This paper gives advices for the three areas, which is a new and operable thought for the circular economy.