Shandong generated $56.42 billion from exports during the first three quarters of this year, $8.46 billion of which was accrued by branded products developed by businesses in the province. According to the Shandong Statistical Information Net, self-developed brands are playing an increasingly significant role in the province's foreign trade.

These self-developed and self-branded products include Foton's agricultural equipment, notably its combine harvester and tractor. The first 10 months have seen the company sell 7,000 sets of these to overseas purchasers.

This success has brought home to authorities in Shandong that cultivating proprietary brands is the key to the province's sustainable development of foreign trade.

Statistics from the Shandong department of commerce show the province has spent more than 25 million yuan on brand-building initiatives in a bid to establish the province's own-label presence in domestic and overseas markets and to further enhance its competitiveness.

Another five globally-recognized brands are set to be introduced by 2010 according to Shandong's development plan. The number of companies now engaged in brand development has seen an average growth of five percent over the past five years. Twenty percent of the export-oriented companies now have their own-brands.

These own-brands cover a wide range of sectors, including textiles, mechanical products and food. Currently Shandong is focusing on developing 146 export-oriented enterprises with an own-label presence.

One of the pioneers in this sector is the China National Heavy Duty Truck Group Corp, which has enhanced its competitiveness in overseas market by investing in its independent innovation capability.

As part of its profile raising activity, the company has introduced the "SinoTruck" trademark. This marque is now used on a global basis, including its adoption by the company's 20 overseas distribution agencies and four assembly plants.

As well as the trademark, the company has independently developed more than 760 types of trucks in order to meet the local requirements of the domestic and overseas markets.

This year has already seen the company sell more than 20,000 trucks to overseas purchasers, an endorsement of the success of its design and research centers, manufacturing bases and distribution agencies in 30 countries across the world. The company sees this as a sign of the success of its new global brand.

Export-oriented brands have naturally triggered export-oriented industrial clusters to develop. Currently, Shandong is home to several such clusters, representing global competitiveness in fields such as home appliances (Qingdao), home textiles (Wendeng) and tire manufacturing (Guangrao).

As an agricultural stronghold, Shandong has made a considerable effort to boost the export of its food and farm produce. This saw the province achieve agricultural exports of some $9.3 billion last year. A total of $1.48 billion worth of vegetables were sold overseas during the first three quarters of this year in Shandong, representing a year-on-year growth of 10.5 percent.

One successful example in this sector is the Longda Foodstuff Group Co Ltd, which sells 70 percent its products to more than 20 countries and regions across the world, including Japan, Korea and Germany. Longda is now a well-known food brand in Japan.

(China Daily 11/26/2009 page24)