Saturday, April 13, 2013

Branding Curiosities

The Indian Supreme Court rejected a medicine patent recently.  India covers about a quarter of mankind.  China also has about one quarter.  With each approximately 1/4 of earth's population, why does neither have no worldwide brand?

And then dice the sample another way, why with 1/4 of mankind Moslem there is no Islamic brand (they may have an excuse with their natural iconoclasm)?

Why does 5% of world have nearly 100% or world's known brands?

Who are the 5%?  Their system is capitalism. Branding is surely fundamental to capitalism: "This is mine."

Let’s look further, who else do not have brands...?

Hong Kong, Costa Rica, Luxembourg, Lichtenstein, and Singapore, Monaco, Andorra, Vatican, San Marino and Iceland, none have worldwide brands.  They may have purposes, but no brands.  (Vatican is religion, Monaco is gambling, Hong Kong is entrepot trade, and so on.) HSBC is a worldwide brand for Hong Kong and Shanghai Banking Corporation, but it is a Scottish company, founded and to this day.

What does these smaller countries (none more than seven million citizens) have in common?  More free market than capitalist: voluntary, hard money, small, polyglot, independent and no standing military.

But then we have one country that seems to excel most of the others on that list: Switzerland. But  should be on the list above, so it is a curious exception.

Nestle Roche Novartis Rolex Credit Suisse UBS Omega Davidoff Lindt Schindler Patek Philippe Swatch Chopard Longines Tag Heuer Breitling and now I am skipping many names.  The Red Cross is another Swiss brand.  They are the honest brokers welcome everywhere. So Switzerland is outsized in brand performance, has all of the attributes of the small freer countries and has purpose: holding money for those who prefer to keep it abroad.

There is no doubt that the Swiss brands grew in a capitalist environment.  So now we know brand, freedom, capitalism, purpose and no standing military are not mutually exclusive.  

But none of those Swiss brands would be world famous without world market. What do we instantly think of when we think of Switzerland?  Banking.  Everyone knows money is safe in Switzerland (that may be changing.)  And it is not that your gold is safe by some standing army, but that Switzerland is safe by every Switzer being armed.   A paradox: the best army is no army.

From this curious situation, Swiss brands have been welcome worldwide.  The Swiss value proposition: "We'll hold your money, you accept our chocolate and watches."

Switzerland has been giving up names, making banking there less secure. Competition is indicated. Their combination is well worth a study by a Hong Kong or a Tunis.  Or that peninsula upon which Detroit resides.

Feel free to forward this by email to three of your friends.


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