Shanghai Daily News

As more enteprises operate in the local market, many hold the principle that strategic brand building will be half of their success.

Jiading is a district that believes in such a principle. It is at the forefront of forging its effort in distributing more 20 million yuan (US$2.5 million) annually to small- and medium-size companies with big potential.

Jiading-based Shanghai Liancheng (Group) Co Ltd and the Aurora Group are two such companies as they were each recognized with the Famous National Brand award issued by the State Administration for Industry and Commerce on Wednesday. They were the only two companies in the district to receive the honor this year.

Liancheng received 1.5 million yuan as an award.

"We want to encourage enterprises to establish well-known brands throughout the country through economic support by the (local) government," a district official said.

"A successful brand name is one that can sustain and compete in the market for a long time. In other words, a good local brand can also raise the reputation of the district and city."

Each year, Jiading provides funds to support 100 independent brands of companies operating in the district.

Liancheng is one of them. It specializes in the research and production of mechanical water pumps, valves and fluid transfer equipment, electronic control systems and environmental protection equipment.

Established in 1997, the company has always concentrated on innovation and research and development through its eight research laboratories, two testing basements and experimental center. In addition, it collaborated with Shanghai University to set up a "fluid research center."

According to company statistics, its total sales volume hit 860 million yuan last year, of which 50 million yuan was paid in tax.

In addition, its sales volume has increased by an average rate of 30 percent annually for the past three consecutive years.

To date, the company has patented 110 products and received more than 30 awards from the city government.

Due to its continuous efforts in technology and brand building, the world has gradually recognized Liancheng which includes among its customers such Forbes 500 companies as General Motors, Siemens and Coca-Cola.

Jiading is proud of its companies' success in brand building as the district is now home to 31 famous brands. In addition, it has 28 famous companies recognized by the city government.

September's Shanghai Grand Prix was a good example of brand building. The Formula One championship resulted in a huge business spin-off for both the host district as well as the city.

In the hotel sector, it has been estimated that the average spend on two- thirds of the room reservations in the district was over US$100 per night during the race.  For some five-star hotels downtown, the price of a room topped US$200 per night.