Asset appreciation equation: let one plus one be greater than two!

The assets of an enterprise can be broadly divided into two categories: tangible assets - including buildings, machinery and equipment, financial assets and infrastructure; and intangible assets - from human capital to creative decisions. know-how, branding, design and other intangible results generated by a company's creative and innovative capabilities.

In the traditional sense, tangible assets reflect the value of a company, and it is also considered to determine a company's competitiveness in the market to a large extent. Business operators are also accustomed to tangible assets. production and operation. However, with the advent of the era of knowledge economy in the 21st century, the above situation has undergone tremendous changes: market competition is no longer the traditional economy of scale, and the cornerstone of the core capabilities of enterprise development has also been converted into the creation of intangible assets, which run through the enterprise. The entire process of creation, dissemination and application of knowledge economy. Entrepreneurs are increasingly aware of the huge potential and power of intangible assets, and more and more companies are beginning to learn how to "improve the management of tangible assets to the management of intangible assets."

First of all, brand creation has become an important means for enterprises to enter and participate in market competition. It is an indisputable fact that brand as an intangible asset has been generally accepted by enterprises. In summary, brand is the condensation and summary of an enterprise's intangible assets. It is evidence of the overall quality and strength of an enterprise, and is also a symbol of the company's visibility and reputation. It plays an important role in the company's market development, capital expansion, and team cohesion. The president of the American Coca-Cola Company once said a classic saying: "If a fire burns out Coca-Cola, I can create another Coca-Cola the next day!" This is the value of the brand, and this is the power of intangible assets!

Secondly, branding is not an act outside the normal business activities of an enterprise. It is part of the business activities from the beginning. The process of dealing with customers, suppliers, partners, government and society is itself the process of building a brand. There is no question of "to have or not to have" or "to do or not to do" for a brand. There are only questions of value and assets. Brands are strategic assets for the entire company, not promotional tools that marketing and brand executives can create, command, and use on their own. If Chinese enterprises want to complete the transformation from simply manufacturing products to creating brands in global competition, they must complete the world view of the brand (brand is not a marketing tool but a strategic asset) and methodology (brand is an intangible asset, but it can also be achieved through specific methods. assets that are measured and managed).

Finally, without diffusion and communication, it is impossible for a brand to generate huge economic and social benefits, and it is difficult to gain understanding, recognition and support from consumers.