tencent ranks in top 10 list of most valuable global brands
dubai — Chinese firm, Tencent, has made its way into a list of the top 10 most valuable brands, placing eighth on the ranking published by brand equity database, BrandZ. The accomplishment is significant as the annual ranking is usually dominated by American companies with a global presence.
With a brand value of around $245 billion, Google retained its title as the most valuable brand in the world; a position it has claimed for seven out of the past 11 years. Similarly, Apple and Microsoft have retained their second and third positions respectively with a brand value of $235 billion and $143 billion. BrandZ rounded up the top five with Amazon and Facebook placed in fourth and fifth position respectively. Amazon’s brand value jumped by 41 per cent to hit $139 billion, while Facebook’s brand value surged by 27 per cent over the past year to hit $130 billion.
Tencent is a popular household name in China, due to its ‘WeChat’ messaging platform. BrandZ noted that the increased used of WeChat helped to propel the brand in the international rankings. The brand specialises in online games, apps, and online payments in addition to its instant messaging services. Tencent’s brand value jumped 27 per cent to $108 billion; and its market capitalisation stands at around $330 billion. AT&T, Visa, IBM, and McDonald’s also made it on the list, placing sixth, seventh, ninth, and tenth respectively on the BrandZ list.
BrandZ’s ‘Top 100 Most Valuable Chinese Brands’ 2017 report noted that in raising its presence in international affairs, China is reclaiming its place as a political and trading power. As Chinese brands faced outward, they also increased in quality and marketing prowess at home, and competed effectively against multinationals. Tencent, which was listed as the most valuable Chinese brand, was followed by Alibaba Group, China Mobile, ICBC, and Baidu.
Along with the many economic, social, and market influences that affected category and brand value fluctuations, the Chinese government played a vital role. The government articulated its ‘One Belt, One Road’ strategic vision in 2014, to encourage global expansion and cultivate overseas markets for its excess industrial capacity.
Chinese brands spent $247.1 billion on overseas mergers and acquisitions in 2016, according to Bloomberg analysis. In addition, entrepreneurial, Internet-driven Chinese brands are finding acceptance overseas, and consumer electronics brands dominate the ranks of Chinese exporters.
However, BrandZ’s research revealed that consumer awareness of overseas merger and acquisition activities by Chinese companies is extremely low overall. Despite this, Chinese brand overseas mergers and acquisitions present a potential opportunity to build brand awareness, improve the perception of Brand China, and help facilitate future global growth.
— rohma@khaleejtimes.com