Research Of Brand Innovation Effects And Its Assessment Methods

As the development of economy integration in the world, boundaries among countries seem to be weaker. More and more foreign brands pour into Chinese market and compete with our national brands. Also, they affect the consumption behavior of Chinese people. Meanwhile, Chinese enterprises share only small part of profit comparing with their craft brother as a base of processing. It's the fifth year after china entered into WTO. Our advantage of low cost will lost since many tariff promises should be implemented. Therefore we should establish our own brand and develop our own brand to help building a strong China. Brand innovation is an effective way to achieve this goal. And brand innovation has become a common issue that all the Chinese enterprises face.As an important immaterial asset, enterprises and scholars pay more and more attention on brand issue. They are doing many researches on this subject. But there is still not an integrated theory system.The research in this paper is conducting under such background. Based on the existing research finding, this paper firstly defines effect of brand innovation, and analysis the necessity of brand innovation in details to explore suitable ways of Chinese character. And then we deeply analysis three effects of brand innovation. That is financial effect, equity effect and social effect. Also it brings forth a model which assesses comprehensive effect of brand innovation from those aspects. At last, it illustrates with a case of TSINGHUA TONGFANG CO., LTD.We can conclude from this paper that: comparing with single-purpose of financing, this model is more valuable for enterprises to make rational strategies and allocate limited resources effectively. And we can start with the component of the brand value to find where we can conduct our innovation activities. Thus we can provide Chinese enterprises with more valuable suggestion.