Editor’s note: While consumers in China can be very shrewd with their purchases, the Chinese saying “the seller is always more crafty than the buyer” often rings true. In order to make a profit from a market in which buyers are notoriously thrifty and price-conscious, sellers often resort to various tricks and techniques to sell their wares.

One such trick is the list of “top 10 brands” in China, a vaunted technique that is currently very popular. While consumers may be impressed with claims of “being one of the top commercial brands in China”, this translated news article tries to ask the important question: “Who decides what is a top brand in China?” and “what is the value of being on such a list?”

When researching certain products and brands online, many consumers will read list after list of “top 10 brands” that involve varying styles and varieties; leaving consumers dazzled and dumbstruck by this avalanche of knowledge.

Just who decides this list of “top 10 brands”? How authoritative is it? What kind of trick are they hiding up their sleeve? Reporters stationed in Beijing, Jinan and other locations have initiated an investigation.

Source: tohoscope

Formaldehyde detected in floor of “top 10 brand”, exceeds standards

To complete renovations on his new house, Beijing city resident Mr Wang had gone to many stores that offered building materials. At each store, Mr Wang would hear the same type of promotion: “Our floors are a top 10 brand in China,” or “Our sofas are in the top 10-ranked brands in the industry” and so on…

Mr Wang said, “No matter what kind of furniture they sell, they would always say that theirs’ is a ‘top 10 brand’…”

During undercover visits to building supply stores in Beijing and Jinan among other places, this reporter found out that the allure of the “top 10 brands” is by far the most common method for enticing customers.

After registering on a website that sells “long-lasting floor boards” this reporter was quickly inundated with messages such as, “These floorboards were rated a top 10 brand in China in 2012”; “Top 10 floorboard brand of 2012”; “China’s top 10 brand of floorboard”; “Authentic wood floorboard that is a top 10 brand”; and “Compound floorboard that is a top 10 brand.”

A proprietor of floorboards was unable to respond to the question, ‘Who or what determines what is a ‘top 10 brand’ despite advertisements in his own shop saying,  “China’s top 10 brand of floorboard” and “Completely authentic quality floorboards of a top 10 brand.”.

After an investigation, it was discovered that a floorboard business that advertised itself as a “top 10 brand” and stated online that, “The consumer advocacy monitoring groups of 28 provinces and cities have proclaimed our products to be way above the national environmental safety standard” was exposed last year of having problems with levels of formaldehyde in its products exceeding industry standards.

Experts say selection of top 10 list is determined by competitive pricing

The organizations that come up with this ranking of “top 10 brands” do not have much in common with each other; judges of the list include a home building supply “research center”, an interior decorating association, and various organizations of sanitation groups. One insider summed it up: “As long as you give money, you will be able to get your business onto a “top 10 brands” list.”

A source working in floor board business in Beijing with more than 10 years of experience states that there are some businesses that make it onto the list of “top 10 brands” only to close their doors a few years later.

Marketing expert Zhou Huaishan says that for the most part, there are no standards established for this type of ranking of businesses, and no supervision. It is basically a list of names in the order of how much money they have given; certification will be issued upon receiving the payment.

A floor board company that calls its website the “industry’s first online floor board portal” has been on the list of “top 10 brands” for five consecutive years. From the website, a person calling themselves a “top 10 customer service professional” said, “To be honest with you, being part of this list will encourage our customers to do business with our company to a greater degree.” According to this worker’s explanation clients’ involvement with the website are separated into two groups: high-class VIP and strategic VIP. The annual fee required to be in either group costs 6,800 and 18,000 RMB, respectively.

Jia Xiaowei, a furniture designer and manufacturer who has been in the Jinan industry for five years, says that, “At first, the committee that determines the list say that they will not accept money; however, once becoming part of the list, the committee asks for fees ranging from 2000 to 10,000 RMB and up to cover ‘costs’. If you have been selected for this list and also want to be part of the public announcement that is published for the public, a block of space costs 20,000 RMB while a cover costs 50,000 RMB.”

The madness of the “top 10 brands” list is not confined to the housing building supply industry, but also has a “dazzling, enchanting” impact upon consumers of milk powder, clothing, electrical appliances, and automobiles.

Professional recommendation: The need for a trusted list of brands

Dong Zhengwei, a lawyer with the Beijing Zhongyin law firm, says that businesses that purchase a spot on the list of “top 10 brands” directly mislead consumers and that the list itself is already being suspected of “false advertising.”

Marketing expert Zhou Huaishan suggests that the government should establish industry standards and guidelines, and that businesses and institutions that violate these rules should be punished. Zhou also suggests the establishment of one or several third-party institutions, that is trusted by both businesses and consumers alike, to publish a guide to brands that is both informative and sensible.

Source: Sina

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Keywords: consumers in China top 10 brands in China top 10 China