Helping SMEs to build brands

Focus Tech's arm InQbrands pushes Chinese small businesses to succeed overseas

When you buy a made-in-China paint brush, a photo frame or a similar low-value product, chances are you would not bother to know more about its manufacturer.

But such little known manufacturers, called small and medium-sized enterprises, or SMEs, sell piles of products and commodities across the world.

That story of SMEs may change soon. InQbrands Inc, a US-headquartered internet-based brand-building service provider, whose parent is a Chinese company, has taken upon itself the challenge of giving Chinese SMEs a recognizable face and the gloss of reputable brands.

It has already helped dozens of SMEs to build their distinct brand image and cultivate overseas customers.

For long, Fair Isle, a Chinese knitting wool producer, faced challenges in selling to the US market. It lacked knowledge about local consumers' color and pattern preferences.

In 2016, however, InQbrands provided in-depth analyses about US customers, and advised it to develop its Fair Isle brand. It also helped design its logo, packaging and marketing solutions, according to Qin Zhen, general manager for InQbrands Greater China.

It guided Fair Isle to expand its online and offline sales channels, including presence on e-commerce platforms Amazon and EBay. That created brand awareness among consumers, and Fair Isle's woolen products received many positive comments.

Its Snowstar winter beanie hat, priced $6.99 on Amazon, received 170 reviews, 61 percent of which gave it a five-star, or top, rating.

Elliotte Webbon, a netizen, wrote: "Comfortable, cheap, cute looking, and fits, what more can you ask for in a hat?"

Another buyer, Ivan Garcia, commented: "Nice item from a great seller. Beautiful for women and kids."

In less than a year, Fair Isle transformed from a wool processing factory into a global brand, Qin said.

InQbrands is a subsidiary of Focus Technology Co Ltd, a listed business-to-business or B2B e-commerce service provider. It was founded in the United States in 2013.

InQbrands' website says the company's mission is to improve the global competiveness of Chinese SMEs by brand building and business strategy advisory services.

True to its stated mission, InQbrands helped Wolf Paint Supply Co, a Chinese paint brush producer, to develop its new logo－a wolf howling in the woods－in August 2017. Its specially-designed brush varieties are priced between $5 and $13 each.

Acting on the advice of InQbrands, Wolf Paint targeted cost-conscious American families interested in decorating their homes themselves.

"Many SMEs think it takes decades to build a brand. But we think the time can be significantly shortened with continuous trial sales," said Qin.

Such trials decrease costs as well as risks for SMEs, while improving profit from cross-border e-commerce, he said.

Turnover of China's cross-border e-commerce was about 7 trillion yuan ($1.1 trillion) last year, and is expected to reach 8.8 trillion yuan this year, and 12 trillion yuan by 2020, with an annual growth rate of about 20 percent, according to data from market research companies iResearch and CIConsulting.

As more and more SMEs gain confidence and tap overseas markets, the resulting intense competition is shifting focus from price to quality and brands, said Zhang Li, president of the E-commerce Research Institute, a part of the Ministry of Commerce.

"E-commerce companies need to stress more on market, human resources and try to establish a global brand quickly."

Agree Qin of InQbrands. "Chinese SMEs need to learn to become brand-owners, instead of being just manufacturers."

Focus Technology, parent of InQbrands, has helped more than 1,000 Chinese SMEs to go global since 1996. Its services include customs declaration and inspection, overseas logistics, storage, financing, brand-building and direct sales channel expansion, the company said.