Building and maintaining a brand

(Baonghean) - Many people probably haven't forgotten the infamous trademark hijacking incident from over a decade ago. Back in 2000, the Trung Nguyen coffee brand was soaring. Amidst the success of the young owner, Mr. Dang, and his dream of a global Vietnamese brand, a devastating blow struck: Trung Nguyen coffee had lost its chance to enter the US market. Surprisingly and ironically, a company on the other side of the globe, Rice Field, quickly "snatched" the Trung Nguyen brand by registering trademark protection in the US and with WIPO (World Intellectual Property Organization).

That's the way the legal game is; it's not simple to reclaim what you thought was rightfully yours. After two years of negotiations, Trung Nguyen finally regained the brand, and Rice Field didn't end up empty-handed. Besides what they gained during the negotiations, they also secured the right to become a distributor of Trung Nguyen coffee in the United States. Paying to buy back your own brand is a costly but necessary lesson, opening your eyes to the fierce competition and the tricks of the market. More importantly, it shows just how valuable a brand truly is.

One might think that was a life lesson, but unexpectedly, in 2012, news broke that the "civet coffee" brand had been lost. A search on the U.S. Patent and Trademark Office (USPTO) website revealed that the trademark for Legendee Coffee (cafélegendee – civet coffee) had been registered in the U.S., with Alexander Nguyen – a Vietnamese-American – being a complete stranger. The story of Vietnamese trademarks was once again reignited by these unsavory incidents stemming from what is called… legal matters!

Brands now seem to be more than just "intangible"; they are measured in monetary terms. It's even become commonplace in Vietnam to see "brand owners" who, after years of hard work building their brands, then... sell them!

Ultimately, when we talk about brands, we are referring to the quality of goods and services; the conduct of the business; and the benefits and advantages it brings to customers. Through the outward signs of the brand image, customers recognize the company's goods and services among countless similar products and services on the market. A brand can be said to be a promise, an expectation present in the minds of each customer about a particular product, service, or company. A brand also creates emotional associations with customers, a mark of trust in the product.

The renowned German economist and architect, Walter Landor, one of the world's top ten logo designers, once said: "Products are made in factories, brands are made in minds." A strong brand always stems from the genuine, outstanding quality of its products, built upon the enduring recognition of customers over a certain period of time. Today, thanks to the support of information technology and professional advertising, while these have contributed positively to promoting and expanding brand reach, advertising itself is not what makes a brand; in fact, it sometimes even harms it.

Over the years, Vietnamese businesses have become familiar with questions like: What is a brand? What is brand value? Why is brand value important for the sustainable development of a business? Yet, many are still struggling to change their perception of brand value. Even more alarming and reprehensible is the deliberate pursuit of illusory brand values, which inevitably lead to their premature demise. Then there are the instances of "fighting" and intentionally tarnishing established brands, likely for the sole purpose of gaining market share. However, genuine brands always stand the test of time. A brand cannot be created or destroyed overnight, or simply by putting a few flies in a bottle of soda! Brands never originate from dishonesty. We have no reason not to be proud of and encourage Vietnamese brands. The faces of companies like Viettel, Hoang Anh Gia Lai, and May 10 have been contributing to enhancing the image of the country's economy in the eyes of the international community.

However, the current demand is for Vietnamese brands to become stronger to avoid the risk of losing on home ground and failing abroad as integration deepens. The prospect of foreign "tycoons" acquiring Vietnamese brands is also a warning that cannot be ignored. While it's true that "citizens are allowed to do everything that the law doesn't prohibit," it's regrettable to see Kinh Do Confectionery, Prime Group – Vietnam's largest ceramic tile manufacturer, and many other major brands on the verge of falling into the hands of foreign investors.

Recalling the Trung Nguyen case, the determination to recover what was lost was truly commendable. Perhaps some Vietnamese businesses selling their brands was a shrewd calculation. However, reclaiming or even buying back is still better than selling. This shows that building a brand is incredibly difficult, but preserving it is infinitely more challenging.

An Khanh