Asset Investment Analysis On Watch Brands

Compared with mature foreign brands, China’s local brand development is lagging behind:the life of company is short and brand-building result was not significant, so the things the companies really have are not brands but trademarks. Chinese customers do not trust the quality of local brands, on the same condition, they prefer foreign goods. There are three reasons:firstly, the gap in technology causes the differences in products quality. Secondly, China is a big manufacturing country. In a very long time, China focuses on production rather than brand-building. Thirdly, China companies lack professional knowledge and skills in brand-building. They cannot find a way to build their brands.The first reason above is not in the area of brand economics. The key to the second question is the change in development concept. Now, China has recognized the importance of brand-building in the progress of development. In the same time, China advocates speeding up the building of the brand strategy system and give birth to the concept of "good brands make our country stronger". Continuously, China companies make brand-building the core of their development engine. Existing domestic and international researches are to answer the third question. But there is no agreement on how to distinguish between brand and trademark or how to achieve the conversion of the trademark to the brand. In brand economics, they think only the trademark whose brand credit reaches a certain level can be called a brand. But nowadays, market has become increasingly competitive, qualities of goods become alike. Only if we give the trademark its unique emotional interests can the brand credit be improved. This paper is based on the existing brand credit rating system. Then I use index analysis to find the gap between trademark and brand. At last, we make a reasonable and effective brand investment strategy as a guidance for brand investment of trademarks.This paper includes six chapters below:The first chapter is introduction, including a brief description of the research background, the significance of research methods and some innovation ideas. It also gives birth to several questions:What is the difference between trademarks and brands. What are the effective tools for analysis of brand investment? How to give more brand credit to trademarks and even make trademarks become brands?The second chapter is about theories. First I define relevant concepts, and then I introduce the research results on brand valuation. At last I give a brief commentary on researches home and abroad. After all of that, I point out the necessarily of this paper.The third chapter is of the most importance. I mainly analysis the transition mechanism from trademarks to brands. First I give a brief analysis on relevant principles of brand economics and brand credit rating system. Then, I set up a "emotional interest fluctuation model" on the theoretical basis and raised several concepts like "emotional interest fluctuation coefficient","correlation coefficient of emotional interests ","the choosing cost of emotional interests". After all of that, I analysis the "emotional interest fluctuation" both on the "competitive " and "no competitive" conditions and study how the ten credit rating indexes affect the formation of emotional benefits through exert influence on these concepts mentioned above.The fourth chapter is typical case study. I use the rating system to rate three representative watch brand "PETEK PHILIPPE","Ernest Borel" and "Shanghai".In the fifth chapter, based on the analysis above, I make a detailed description of the brand effective mechanism for "Ernest Borel"’s brand emotional interest and then make up a corresponding brand investment strategy.The sixth chapter is the summary of this paper, including conclusion, innovation and inadequacies.