Value of top 100 Chi­nese brands surges

China Daily European Weekly - - BUSINESS - By ZHENG XIN zhengxin@chi­

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.

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