Establishing a brand is crucial for companies that intend to differentiate their products from others and to gain profits, said Zhang Yansheng, a researcher with the State Development and Reform Commission Sunday at a forum on brand building and promotion in the Ningxia Hui Autonomous Region.

The workshop is part of the Western China Brand Promotion Tour sponsored by China's Ministry of Commerce.

Chinese-made lighters hit 80 per cent of the global market, but most, if not all, of them are made for Japanese or South Korea firms, thus bearing these firms' trade marks, according to Zhang. As a result, the majority of the profits are taken away not by the OEMs (original equipment manufacturer) in China, but the counterparts in Japan and South Korea.

A name brand can be turned into the sustainable competitive edge of a company, noted the researcher who advised the OEMs to start brand building after they have gained a relatively good financial status.

Zhang suggested enterprises in Ningxia should enlarge market share in the region, creating a big demand for local products, which in the end will help local brand's growth.

He went on to call for local governments to offer financial, information, personnel support to enterprises in brand building while beefing up the protection of intellectual property rights.

The region should start brand building in advantageous industries, such as agricultral products, medicine and health products, according to Zhang Qingning, an academician with the Ningxia Academy of Social Science.

He asked the local government to offer preferential financial and tax policies for local name brands, so as to help them increase influences across the country.

Wang Desheng, head of the Western China Brand Promotion Tour delegation, put forward four proposals for brand building in Ningxia: increase the brand building awareness and foster a sound environment for brand building; improve the products quality; step up efforts in brand appraisal, promotion and protection; and beef up marketing efforts and enlarge the market.