Sunday, May 08, 2005

FIDA is a female FIDO -- Poor Name Choice For UFSoft

Create an International Brand Name: Yongyou Announces New English Name

http://www.ufida.com.cn/show/dispnews.asp?cid=6270&tid=288

April 19, China’s largest management software/ERP manufacturer Yongyou Software Stock Company Limited held a news conference to announce that its English name would be changed from UFSoft to UFIDA. It also announced its newest plans for developing the international market.

UFIDA is the new English name Yongyou will use in its plans to develop the international market. In addition, the symbol Yongyou has used in the domestic market during its 17 years of development?a “heart” and the words “Yongyou Software”?will also be replaced with “UFIDA Yongyou.” “UFIDA Yongyou” is derived from the Chinese meaning of Yongyou’s slogan “sincerely cooperate with the user and be the user’s reliable friend.” This is a good expression of Yongyou’s business philosophy. It also has an international flavor that can meet the needs of Yongyou’s both international and domestic development.

Yongyou Company’s chairman of the board and president, Wang Wenjing, thinks that replacing the English sign is appropriate for an international market with multiple languages since it will lead to easier recognition. In the global market of the future, this is the type of sign that will be identified and recognized. In order to advance the internationalization strategy and develop international business, Yongyou Company announced that it will use the new name UFIDA; at the same time, the new English sign is an important landmark for the progress of Yongyou Company’s internationalization.

In introducing this new English name, Mr. Wang Wenjing pointed out that “the new name matches the Chinese meaning of the brand name ‘Yongyou,’ especially ‘sincerely cooperate with the user and be the user’s reliable friend.’ ‘U’ is for ‘User’, meaning user; ‘FID’ expresses fidelity, coming from FIDELITY (faithfulness) while taking the English root; finally, ‘A’ is placed at the end to make ‘UFIDA’ easier to read and remember. At the same time, the new name is a good reflection of the business philosophy of ‘sincerity’ at Yongyou. It is also a feature of internationalization.

It is reported that Yongyou Company made this decision under the influence of a general strategic background of putting all company resources into developing the international market. It shows that the Company is determined to advance into the international market. It also reflects the increasing trend of global users demanding management software. The well-known international research organization IDC points out that the China enterprise management software market his 299 million USD in total value, increasing 20% from last year. Besides this, the global ERP market will grow at a steady to 2007. Using an average increase of 3.3%, the total market will reach 28 billion USD. Wang Wenjing figures that “the global software market has already changed. Products and service must be packaged together to give more value to the customer. Yongyou will develop strategy in this direction. We have already prepared by developing from a domestic software company to a leading company in the international market. We welcome the challenges that the future will bring.”

Wang Wenjing pointed out that “in all aspects of the Company’s strategy, Yongyou is working hard to lead the industry into economies of scale and internationalization.” In order to increase the effort toward internationalization, at the beginning of 2005 Yongyou Company established a international business department. Vice-president Wu Qiang headed up this department which has already established branches in Hong Kong and Japan. In discussing the international business strategy, Mr. Wu expressed that Yongyou Company has used its total business to develop overseas business, including products sold in international markets, software outsourcing, multinational companies use of Yongyou products and service in the China market, and domestic users use of Yongyou products and service in overseas markets. The business strategy has two aspects: one is to sell its own products in overseas markets; the other is to provide product and service outsourcing to overseas customers. In this way, product and service businesses will complement each other and increase the influence and position of the brand name in international markets. In addition, the Company will increase its R&D of multilingual and international versions of its products. Yongyou will continue to attract international talent by employing directors and personnel with international market experience. Overseas outfits and foreigners working at Yongyou headquarters will aid in providing better products and service to local customers.

From the beginning of 2004 when the international strategy began to be implemented, Yongyou Company put into place a strategic goal of “Becoming the Leading Manufacturer of Management Software in Asia by 2006.” The first stop for development was the Asia-Pacific region market, while regions outside the Asia-Pacific Region were also considered. As to the importance of the Asia-Pacific market in terms of Yongyou’s global strategy, Mr. Wu Qiang said: Yongyou Company divides the market into five segments including China and Southeast Asia, Northeast Asia, West Central Asia, South Asia, and Pacific regions. Each of the regions has different needs so according to the different scale of each of market we must adopt different development policies to promote Yongyou products including establishing branches, alliances, collaborations, authorized distributors, joint ventures, or even outright purchase. At the same time, Yongyou currently has a R&D team that is working to develop the next generation of product for the international market. Yongyou Company also uses flexible sales strategies and promotion policies according to the different situations of regions or markets.

To develop business in Hong Kong and Southeast Asia, Yongyou Company has promoted its Hong Kong branch to regional headquarters, controlling Macua, Taiwan, Singapore, Thailand, Malaysia and business from other Southeast Asia countries. Currently, in China, Hong Kong, and Japan the Company has over 50 branches. It has established distributors and joint ventures businesses in Thailand and other countries. At the same time, Yongyou has achieved the trust and favor of a great many international customers and partners, including multinational companies, small- and medium-sized overseas companies, and Chinese customers with overseas business.

Yongyou Company has held the number one ranking in management software for the past three years in China. It has become the indisputable leader among China’s management software manufacturers. According to data from CCID Consulting, Yongyou Company possessed 21.9% of the domestic ERP market. With the high-speed development of Yongyou in the domestic market, other domestic management software leaders are making noise, developing international markets and reaching out to the place where markets are ripe for the taking.

After many years of saving, China’s management software industry is ripe for the picking. With Yongyou at the head, many partners have entered into an ERP alliance. This has created a chain of applications to disseminate ERP. In the domestic market, the ERP chain has gradually become clear as the solution to business problems. Internationalization has gradually become the necessary choice of mainstream manufacturers. The success of China software companies life Yongyou proves that China software manufacturers have experience and expertise to deal with international manufacturers. There exists a complete ability to compete with companies following the WTO market competitive agreements. At the press conference, Wang Wenjing confidently announced that, “17 years ago, we created a Chinese ‘Yongyou.’ It has become one of the most successful brands in China’s market. Today we create an English UFIDA. I believe that, with effort, we can find even more success in the international market!”
April 20, 2005

1 comment:

Tyler Rooker said...

*Update*

I spoke with several friends about the name choice of UFIDA. Indeed, they agreed, it is a poor choice. To convey the meaning that UFSoft (Yongyou) wants, the ideal choice is something along the lines of "UFIDE" which is the Latin root of fidelity. Thanks for the comments.