Brand Entrepreneurs Conference

Addressed by Tan Sri Lim at the Brand Entrepreneurs Conference organised by the Branding Association of Malaysia
11 December 2003

First of all, I would like to thank the President and Deputy President of Branding Association of Malaysia for their kind invitation and the opportunity to participate in this very important seminar.

Earlier today, you have heard from some of Malaysia′s most prominent entrepreneurs on how they have mapped out and implemented their own blueprints for success.

What I have to say may serve only to reinforce what they must have said, and beyond that, what I believe must be done as we face tougher competition and more challenging market environment ahead of us.

When I spoke at this same forum in 2001, I pointed out that developed countries generally produced goods that were very well designed and presented, and that had become synonymous with the country′s image. Resulting from this, whatever brands or products that were to come from these countries were perceived to be better and of a higher quality. Invariably, they commanded a higher price.

What is also true is that the image of these countries is, without any exception, highly positive. And that, in turn, reinforces the quality image of the products they produce.

I have said that it would serve us well to learn from the Japanese and the Koreans. And now the Chinese too.

The Japanese stand out for creativity and innovation, and they have a long list of famous brands – many of them come immediately to mind – Sony, Sanyo, Panasonic, Honda, Hitachi, Mitsubishi, Yamaha, Isetan and it′s a long list.

These brands have such strong image that they are able to carry a wide range of products covering several categories under a single brand name.

The Koreans have recently made remarkable inroads in the global market; in promoting their products and their brands. Korea is now mentioned together with Japan as Asia′s most successful in developing world-wide brands.

What about Malaysia ? Two years ago I said we were almost ready to take on the world. Now two years later, have we become more effective in the art of conceptualising, designing, innovating and branding for the world?

In many ways, we have. We have now the right mindset, at least we now know we have no choice but to compete in a globalized market. We know we must learn and learn and learn in order to be able to compete. We know we must build added value and competitiveness into everything we produce; every product we develop; every packaging we design; every roadshow we run, every opportunity we have.

We know very well now that we must be innovative; we must make the most effective use of design and creativity as enabling tools to ensure quality, add perceived value and enhanced marketability to whatever we produce.

We are now more aware of global opportunities. We know we must now think global. We know we must now develop and brand our products more creatively and position them more strategically so they may compete successfully in as many countries as possible.

We have convinced the Government that this battle is not ours alone to fight, but that of the country′s. We have convinced the Government that if we lose in our battles to gain ground overseas, the country loses too.

So the Government has now set aside added incentive designed to encourage Malaysian companies to develop and promote Malaysian brands more aggressively internationally.

That incentive scheme marks a major turning point for those of us who have for years been fighting this battle largely on our own.

More importantly, it marks the beginning of a new partnership between us, the country′s brand builders – the country′s front-line competitive players – and the Government.

Let′s make the best use of the grant set up to assist in our brand-building efforts. And let′s hope that the Government will be effective in their effort to support the most deserving companies, and in achieving the goals for which the incentive grant has been allocated.

With AFTA and WTO at our doorsteps now, the time has come for us to drive forward with a greater sense of urgency.

The time has come for us to further strengthen our country′s positive image with more quality products and services, more imaginative branding, and more ground breaking ideas.
We have the talents and the skills. We have the resources and the resilience. We have the unique advantage of cultural diversity. We have the creativity needed. We have the ability to create and innovate. We have all the ingredients to succeed.

What we need to put in place now is a commitment to do what must be done.

We must set our sight sharply on brand ownership, going beyond brand dealership.

We must set as our goal the ownership of brand power, because manpower will not, in the long run, give us the sustaining power we need to defend our business in our own country, leave alone penetrating and capturing our countries.

We must adopt more sophisticated means in developing our business, even if it is a small family business – especially if it is a small family business.

Everywhere in the world, we see that the innovators and designers are the ones who drive the growth of the world′s most progressive companies.

The way of the future is to find ideas with strong consumer appeal, and innovation that captures the imagination.

The way to build our future is to build desirability for the brands we own, not just for the products we make.

The future is all about creativity – creativity in product development, creativity in brand development and creativity in market development.

But I know that many of you present in this room still view spending on research and design as just an expenditure. But that is a very wrong way of looking at it. Time, attention and expenses incurred on creative services, on research and development, on brand architecture are altogether a pivotally important investment.

No company producing products, whether you market them directly or indirectly, can afford not to engage in these critical development services.

It is estimated that it takes 4 to 5 years to establish a brand, to be known and recalled in the market place. If we do not start now, we will face difficulty 5 years from today.

But let me say this clearly. Branding is not a magic formula that can solve your manufacturing or marketing problems overnight. Neither can it be expected to double your sales volume before your next birthday.

Brand building is a highly complex and continuing process. It never ends. It requires a commitment to invest time and resources. It requires single-minded dedication and a healthy appreciation for innovation. It requires experience and expertise. It requires passion and patience – not just funding.

But it is no magic wand.
And it will fail if it is not done well.

As time goes by, our competitive edge as an inexpensive manufacturing base will be eroded.

Already, the world′s most expensive brands are now made in the world′s cheapest countries. Having their products made in China or India or Mexico or Vietnam has not prevented brands such as Toyota or BMW or Reebok or DKNY or Apple Computers or Intel and other world favourite brands from expanding their global sales and increasing their dominance around the world. It has, in fact, helped them become more competitive.

Switzerland, Sweden, France, Germany, Italy, Japan, UK, US – these are the world′s wealthiest nations. They also are the world′s most innovative.

To be an innovative nation, we must. To us there is no other option.

May I conclude by proposing that a brand development partnership be established between Malaysia Design Technology Centre and Branding Association of Malaysia. The purpose of this partnership will be for the Design Centre to provide branding and creative services, research and development services, training and brainstorming services to members of the Branding Association.

Once this proposal is accepted, an active partnership can be in place within a month.

• We make good shoes
• We make good clothes
• We make good furniture
• We make good electrical goods
• We make good rubber and timber goods
• We make good cars and good bikes
• We make many good things

All we need to do now is to make them famous !

Ladies and gentlemen. Thank you for the opportunity.