BrandZ China Top 100 Portfolio Brands Nearly Tripled the Growth Rate of the MSCI China Index Since July 2010
Technology giant Tencent has retained the coveted title of China’s most valuable brand for a fourth consecutive year, achieving a brand value of US$132.2 billion/£93.1 billion, a 25% year-on-year increase, according to WPP and Kantar Millward Brown’s 2018 BrandZ Top 100 Most Valuable Chinese Brands rankings.
Other noteworthy sectors include education, logistics and technology, all of which continue to perform strongly, based on demand from areas such as the Chinese’s pursuit of higher qualifications, e-commerce and urbanisation of inland regions.
China’s largest e-commerce company Alibaba continues to grow at an exceptional rate, growing 53% year-on-year to achieve a brand value of US$88.6 billion/£62.39 billion.
Logistics brands have entered the BrandZ China rankings for the first time as a category, reflecting the rise of e-commerce and the increase in package delivery volumes. Five logistics brands entered the BrandZ ranking this year with the largest, SF Express, coming in at number 11.
As the most definitive and robust ranking of Chinese brands, the report combines financial data with consumer opinions gathered from interviews with over 400,000 Chinese consumers to give a dollar value to how brand powers business.
The brands in this year’s report achieved record growth with a 23% rise in brand value, from US$557.1 billion/£392.3 billion a year ago to US$683.9 billion/£481.6 billion in 2018. This represents the greatest one-year growth since the Chinese brands ranking was first published in 2014.
With the Chinese Dream firmly on the agenda of many companies, along with consumers who aspire to invest in their future, new business opportunities have presented themselves.
“The game is changing for brands that want to compete successfully in China. The country’s leadership expects brands to pursue a higher purpose; one that improves the lives of Chinese people, helps drive greater economic equality and strengthens the nation.
“Chinese consumers appear more willing to pay a premium for innovative products and services. 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,” said David Roth, WPP.
China is one of the most competitive markets in the world. Market-driven brands have seen a phenomenal increase of 271% in value over the past five years. Overall, the China Top 100 has grown by 80% over the past five years, outpacing even the Global Top 100’s 27% growth.
China brands have since made their presence felt within the global business landscape, with international brands closely observing their development; whilst in China, local brands are keeping a close watch on their peers. The competitive landscape in China meant some brands were unable to maintain their rankings within the Top 100. In China, 28 brands had exited the China Top 100 rankings over the past five years, versus 17 from the Global Top 100.
“Chinese brands are quickly learning how to raise their profile through impactful and memorable advertising. A combination of having the right media mix, message and memorable communication is a sure bet towards accelerating brand value growth.
“The importance of ‘brand’ to Chinese consumers is proven by our Brand Power index, with only those brands with a high Brand Power score, a measurement of consumer predisposition to buy a brand, manging to stay in this competitive ranking, indicating the importance of brand to sustain success in China’s rapidly changing market,” said Doreen Wang, Global Head of BrandZ, Kantar Millward Brown.
“It is a really exciting time in China right now with many ambitious businesses recognising the opportunities abroad and the importance of investing in building their brand outside of the region. 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 evolving, with Chinese enterprises enjoying a growing reputation within the global competitive landscape,” said Patrick Xu, China CEO, WPP.
WPP and Kantar Millward Brown also recently released the Top 50 Chinese Global Brand Builders Report.