China IP: When did Edifier enter the international market? Did it go well from the company’s inception? What’s the impact of international awards on Edifier?
Xie Xiaoguang: In 1998, Edifier set up a branch in Canada. However, our products did not sell well in Europe and the United States until 2006. With good quality but low price, our products can be said as “best buy.” However, the consumption concept in European and American markets are quite mature and people do not rely on good quality merely. Foreign distribution channels are quite different from the domestic market. Foreign market is usually dominated by several large distributors or chain stores and therefore products that are not recognized by these stores are difficult to sell. At that time, for those European and American dealers with brand awareness, Edifier products did not have the high quality they accredited. Quality is different from texture. High quality often represents high-grade and uniqueness, and reveals personality and uncommonness. That is why the branded product is different from others. Moreover, the product is irreplaceable, which forms the significance and value of the brand. Even though our product had good and stable quality as well as low price, foreign customers still could not recognize its value and preferred to purchase cheaper products from China and then to affix its own brands. The only reason was that our product could be replaced completely.
In fact, this problem is faced by all domestic brands. We started from finding the gap between Edifier and foreign brands. After comparison, we realized that their products were designed while ours were just manufactured; they asked all of the production procedures to meet the requests of design while we did the opposite. In fact, the real people-oriented concept is not only to provide consumers with good functional value and low price, but also to embody the product concept in the brand value and enable customers to fully experience the charm of brand culture, which will increase the added value to achieve win-win in product marketing. Therefore, we intensified efforts in research, planning and design. In 2007, we finally launched our new products with the latest design concept at the CeBIT show in Germany. We found that the opinions of European and American distributors were changed significantly. In fact, they had never looked at us with tinted glasses. On the contrast, we ourselves did not have deep understanding of their demands. When our products truly have distinctive style and our innovation and cultural connotation catch up with European and American brands, we will naturally get their sincere praise and practical return.
With innovation, the award-winning Edifier M500 design opened the high-end retail channels in the international market, improved the profitability of the product, greatly enhanced the brand’s position in the international market, stepped into positive brand competition (i.e., differentiated competition), and increased the overall sales of the full series of products. This is the advantage brought in by industrial design. Now at international exhibitions, a large number of agents are waiting in line to do business with us, which was unimaginable in the past.
China IP: Many Chinese enterprises do not have much experience in the field of industrial design. What difficulties will they meet in new product innovation and design?
Xie Xiaoguang: The difficulties encountered in design and development comes from all aspects. Generally speaking, it is difficult to make the breakthrough. We once got stuck in the product concept problem when developing M500. At that time, the market did not lack of such audio playback systems for iPod or iPhone, so we had to find ways to avoid similarity and to gain irreplaceable features. This means the design shall have a clear market positioning and distinctive original style so as to create a unique aesthetic taste which would make our product unique in the market and generate strong demands from target consumers. In fact, it is also common for international brands to meet bottleneck in developing new products, which is the nature of design work. Domestic enterprises have too few experiences or accumulations in this field and some companies still have no experience of it. Therefore, these companies are at loss at the critical moment of transforming.
China IP: Do you have protective measures for each new product launched at home and abroad? Do you attach importance to patent application?
Xie Xiaoguang: We have specialists who take charge of intellectual property protection issues and we have staff that fights against counterfeits. At present, the counterfeiting products are mostly our low-end products, because the cost is relatively lower. Of course, we lay great emphasis on patent application, but we do not apply design patent for every new product. In international market, high-end products are usually distributed via standardized sales channels. Counterfeiting products would never enter this channel, which is also the barrier set by high-end brands.
China IP: Is the gap between domestic and foreign enterprises large in the industrial design field?
Xie Xiaoguang: It should be said that the gap is rather large. It is still rare for Chinese enterprises to win international award in industrial design. In many supermarkets in Europe, a wide range of products, including TV, fridge, knife and fork and other daily appliances, are all design award winners. Low-quality products have no place in these supermarkets, which is also the brand-based operation model in rich economies. Currently, the overloaded domestic market, serious product homogeneity and overcapacity lead to the severe price competition. Domestic enterprises have been in lack of industrial design practice and accumulation for a long time. High-level design talents are not enough; there is no scientific management or systematic design development procedure; companies have low brand awareness; there is no clear brand positioning and corresponding marketing norms. Therefore, domestic industrial design is still at a low level in terms of the overall industrial concept and standards. It requires long-term exploration and accumulation to raise design level and enhance brand value. Overnight effort will not produce a qualitative leap. Unfortunately, it seems that speculation and fickleness is still the universal value held by domestic enterprises.
China IP: You once said, “Design itself is a kind of constant pursuit, pursuing the dreaming inspiration.” Would you like to explain it?
Xie Xiaoguang: It is generally believed that design depends on inspiration. But I think it is not comprehensive. Design is created by thinking, which is originated from the concern and understanding of human nature. “Inspiration” is the most noble and scarce mental demand in human spirits. To move people, the first step is close concern. This concern should not only be reflected in the exhaustibility and comprehensiveness of product, but in the created value beyond the imagination of consumers, which will ascertain the nature of consumer issues and further satisfy their demand. Products shall sympathize with demands to give consumers the inspiration. Why is brand “branding”? Because the long-term human care of the brand move people and create ever-lasting inspirations.
By Doris Li, China IP
（Translated by Li Yu）
