The majority of Chinese enterprises are still in the stage of accumulation.

by zcib5742 on 2011-06-16 13:37:46

How to prevent one's product from being overwhelmed on the shelves filled with countless items? A beautiful or unique packaging might just do the trick.

Packaging design is equivalent to a live advertisement, and it often plays a role at the final critical moment when consumers decide to make a purchase. If the design stands out, it could save a considerable amount of advertising costs. For companies with tight advertising budgets against the backdrop of a financial crisis, this is not a bad shortcut.

Some multinational companies with nearly a hundred years of market experience often appear adept in product design. When they found that Chinese consumers' sensitivity to so-called "foreign" packaging was decreasing, these multinational companies began aggressively promoting the Chinese elements included in their product designs. For example, Coca-Cola featured auspicious clouds on its cans, and Pepsi appropriately wore a shade of Chinese red before the Olympics.

Most Chinese brands lingering in the mid-to-low-end market but always eager to try new things are currently considering an issue: how to enhance their brand image through design.

Yant Brand Alliance General Manager, Shao Yongzhong, frankly pointed out in an interview: "Nowadays, no one would deny the concept that design can enhance Chinese brands, but no one can quite achieve it." Hong Kong Design Centre Vice Chairman, Liu Xiansheng, pointed out that Chinese enterprises have made significant progress in technology, channels, and management, but they have inevitably lagged behind in design. However, Liu Xiansheng encouraged Chinese enterprises, pointing out that the lag in design development compared to other aspects is a phase in the enterprise growth process; Western enterprises also went through this stage during their rise to power.

Just how long will it take for Chinese enterprises to surpass this stage, and what exactly is the current gap between Chinese enterprises and the West?

Design: Intrinsic Value First

How much of a role does product packaging design play in the success of a product?

"People generally won't admit that packaging influences their purchasing behavior in routine market surveys because they feel it makes them seem superficial," Shao Yongzhong pointed out. "But in reality, the potential influence of product design on people's purchasing behavior cannot be overlooked."

Liu Xiansheng used his own proud work, Watson's Distilled Water, to illustrate this point. "When Watson's approached us, this century-old brand was at a critical turning point." At that time, Watson's distilled water was under attack by many young brands, and its market share was declining. After nine months of effort, when Watson's reappeared on the market in a new green outfit, many consumers were captivated. "In the few months after the launch of the new packaging, they saw triple-digit growth."

Shao Yongzhong pointed out that product design rarely wins purely based on style; most outstanding designs are supported by concepts. Liu Xiansheng then pointed out that design needs to reflect the value and added value of the brand. Undoubtedly, beautiful design is the key to entering the market, but if the design lacks intrinsic value, it still cannot achieve lasting and continuous success. What truly moves people is the substance behind the design, such as Watson's distilled water representing the concept of an artistic lifestyle, or Apple's iPod interpreting music.

"Designers should not be narrowed down to mere draftsmen; design is the embodiment of brand philosophy." In fact, this highlights the key reason why Chinese brands fall short in design. In other words, most Chinese enterprises' understanding of design only stays at a superficial level, which is the product packaging itself. "Design can only achieve unexpected success when considered at the brand strategy level."

Making Subjective Preferences "Passing Guests"

For design to succeed, it requires close collaboration between corporate leaders and designers. For designers, the key is to express the client's philosophy. Liu Xiansheng said, "When the creative work is completed, and the client feels that it is their own idea rather than mine as the designer, then that is the best creativity." This means that in product and brand design, inspiration always follows commerce. "Designers can propose personalized designs, but these often suit niche markets."

Of course, sorting out the underlying reasons for design requirements, i.e., insight into problems before designing, is the key to success or failure. Mature multinational companies often provide systematic training to employees, so they can communicate product design needs clearly with the creative team.

Moreover, for a century-old brand, corporate leaders are "passing guests." Currently, most Chinese companies are still in the accumulation phase, and the professional manager class is not yet mature. As a professional brand design company under the WPP Group, Yant serves many domestic clients. Summarizing experiences of interacting with domestic and foreign clients, Shao Yongzhong pointed out: "The first generation of successful domestic entrepreneurs often have strong personalities, and they often lack systematic brand management and control over design direction."

In Shao Yongzhong's experience, domestic business leaders seeking brand design consultations can generally be divided into two types. The first type of entrepreneur is very passionate and nurtures the brand like their child. Shao Yongzhong believes, "For this type of entrepreneur, the key responsibility of the design team is to connect the boss's passion with the market and provide rational guidance to the boss." The second type of entrepreneur is relatively calm. "This type of boss has a very clear goal, which is to make money. Therefore, the design team needs to conduct solid consumer research and use detailed survey data to convince the boss."

Focusing on Details

Once the concept is determined, it enters the practical design phase. In Shao Yongzhong's view, creativity is like an assembly line that can leverage many 'tools.' "We have various analytical modules that can isolate issues encountered in design one by one and solve them step by step, thus determining which elements can be retained and which need to be changed during the design process." Shao Yongzhong pointed out, "Visual aesthetics can be solved using scientific tools." However, this does not mean that having scientific tools makes product design relatively easy. In fact, there are many issues that need attention during the design process. If handled improperly, changing the packaging may lead to a decline in sales. Liu Xiansheng pointed out that important designs often require six months to a year to take shape.

On the small packaging, appropriate information needs to be conveyed. If too much information is concentrated, it becomes difficult to highlight the focus and is not easily remembered by consumers. Shao Yongzhong pointed out: "The layout plan of core messages on the packaging must be effective."

Additionally, in the process of expanding global markets, some cultures have taboos about certain specific things. Tian Shi Health once printed group photos of people from different countries and regions on its packaging, which is a common way of expression in China. However, Shao Yongzhong pointed out that such photos are not well received in some countries and regions. Finally, Tian Shi Health improved its packaging by adopting a friendly green color and appropriately integrating widely accepted Chinese elements internationally.

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