Value of top 100 Chinese brands surges
The brand value of Chinese companies, especially those in the technology, education and logistics sectors, has seen a surge in the latest ranking, which was released on March 26.
The value of the top 100 Chinese brands this year experienced record growth of 23 percent, from $557.1 billion (453 billion euros; £396 billion) a year ago to $683.9 billion in 2018, representing the greatest annual growth since WPP and Kantar Millward Brown’s BrandZ™ Top 100 Most Valuable Chinese Brands rankings were first released in 2014.
Logistics brands entered the BrandZ China rankings for the first time as a category, with the largest, SF Express, coming in at No 11, reflecting the rise of e-commerce and the increase in package delivery volume in the country.
“More sophisticated in their purchasing decisions, consumers are responding to brands that grab their attention and meet their needs in relevant ways with products and services that are both innovative and different,” says David Roth, CEO for Europe, the Middle East, Africa and Asia at The Store WPP, the group’s global retail presence.
The game is changing for brands that want to compete successfully in China. They are expected to pursue a higher purpose, one that improves the lives of the Chinese people, helps drive greater economic equality and strengthens the nation, he adds.
According to the report, China has become one of the most competitive markets in the world, with marketdriven brands seeing an increase of 271 percent in value over the past five years. The BrandZ China Top 100 has grown by 80 percent over the past five years, outpacing the BrandZ Global Top 100’s 27 percent growth.
The competitive landscape for Chinese brands meant some brands were unable to maintain their rankings within the Top 100. In China, 28 brands have exited the BrandZ China Top 100 rankings in the past five years, compared with 17 from the Global Top 100, it said.
Technology giant Tencent has retained the coveted title of China’s most valuable brand for the fourth consecutive year, achieving a brand value of $132.2 billion — a 25 percent year-on-year increase.
“Tencent has benefited greatly from the rapid development and massive opportunities of China’s digitalization,” says Seng Yee Lau, chairman of Tencent Advertising.
“Technology has become an integral part of our everyday lives. Now the final piece of the jigsaw is ready to be put into place, and a completely digital China will emerge,” Lau says.
China’s largest e-commerce company, Alibaba, has continued to grow at an exceptional rate — 53 percent yearon-year — to achieve a brand value of $88.6 billion.
The BrandZ report combines financial data with consumer opinions gathered from interviews with more than 400,000 Chinese consumers to give a dollar value to how brands power business.
The BrandZ China Top 100 Share Portfolio has increased by 179.1 percent since July 2010, almost tripling the growth of the MSCI China Index, which increased by only 61.6 percent over the same period.
“It’s a really exciting time in China right now, with many ambitious businesses recognizing the opportunities abroad and the importance of investing in building their brand outside of the region,” says Patrick Xu, China CEO for WPP.
“Many enterprises are responding to China’s Belt and Road Initiative and strengthening their overseas expansion momentum. Combined with market dynamics and millions of consumers embracing the ‘China Dream’, we believe the overall perception of Brand China is improving, with Chinese enterprises enjoying a growing reputation within the global competitive landscape,” Xu says.