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UK Insights

BrandZ China: Tencent is still most valuable Chinese brand

Kirsty Cooke

UK Editor

Brands 26.03.2018 / 08:00

BrandZ China

Brands pursue the ‘Chinese Dream’, growing total brand value by a record 23% to $683.9 billion in the WPP 2018 BrandZ™ Top 100 Most Valuable Chinese Brands ranking.

Technology giant Tencent has retained the coveted title of China’s most valuable brand for a fourth consecutive year, achieving a brand value of $132.2 billion, a 25% year-on-year increase, according to WPP and Kantar Millward Brown’s 2018 BrandZ™ Top 100 Most Valuable Chinese Brands rankings.

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 $88.6 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 BrandZ 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.

Brand Z-Region -2017_Twitter _Timeline _1024x 512

The brands in this year’s report achieved record growth with a 23% rise in brand value, from $557.1 billion a year ago to $683.9 billion in 2018. This represents the greatest one-year growth since the BrandZ China Top 100 ranking was first published in 2014. 

The BrandZ China Top 100 Share Portfolio (all the brands in the China Top 100 ranking) increased 179.1% since July 2010; almost tripling the growth of the MSCI China Index, which increased by only 61.6% over the same period, demonstrating further evidence of the value of a strong brand.

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.

David Roth, WPP commented: “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.”

 

The BrandZ Top 10 Most Valuable Chinese Brands 2018

Rank 2018

Brand

Category

2018 China Top 100 Brand Value (Millions $)

YoY Brand Value Change

1

Tencent

Technology

132,213

25%

2

Alibaba

Retail 

88,623

53%

3

China Mobile

Telecom Providers

49,231

-15%

4

ICBC

Banks

37,213

18%

5

Baidu

Technology

24,990

5%

6

Huawei

Technology

24,115

18%

7

Moutai

Alcohol

23,175

43%

8

Ping An

Insurance

22,363

36%

9

China Construction Bank

Banks

20,120

9%

10

Agricultural Bank of China

Banks

16,158

9%

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 BrandZ China Top 100 has grown by 80% over the past five years, outpacing even the BrandZ 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 BrandZ China Top 100 rankings over the past five years, versus 17 from the Global Top 100. 

The BrandZ™ Top 100 Most Valuable Chinese Brands 2018 report, charts and video are available here. The mobile app can be downloaded via www.brandz.com/mobile or search for BrandZ in the iTunes or Google Play app stores.

Source : Kantar Millward Brown

Editor's Notes

The brand valuation behind the Top 100 was conducted by Kantar Millward Brown. The methodology mirrors that used to calculate the annual BrandZ Top 100 Most Valuable Global Brands ranking, which reaches its thirteenth year of publication in 2018.

The ranking combines financial data from Bloomberg and Kantar Worldpanel with consumer opinions gathered from interviews with over 400,000 Chinese consumers since the ranking first launched in 2011. The BrandZ™ Top 100 Most Valuable Chinese Brands is the most definitive and robust ranking of Chinese brands available.

The brands ranked in the BrandZ™ Top 100 Most Valuable Chinese Brands 2018 report meet these three eligibility criteria:

  • The brand was originally created by a mainland Chinese enterprise.
  • The brand is owned by a publicly traded enterprise, or whose financials are audited by major global accounting practice and published in the public domain.
  • Banks derived at least 20% of their earnings from retail banking.

The BrandZ rankings are the only valuations in the world that take into account what people think about the brands they buy, alongside rigorous analysis of financial data, market valuations, analyst reports and risk profiles. Consumer perception of a brand is a key input in determining brand value, because brands are a combination of business performance, product delivery, clarity of positioning and leadership.

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