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Statistics

Tencent holds firm as China’s most valuable brand, growing by 25% to $132.2b

Author: Angelos Restanis / Date: Fri, 03/30/2018 - 10:55
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Market-driven brands producing most value growth with a 271% rise over the past 5 years; 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 $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.

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 $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 no. 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.

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.

Doreen Wang, Global Head of BrandZ, Kantar Millward Brown said: “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.”

Patrick Xu, China CEO, WPP said: “It’s 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."

Tencent is proud to be part of the BrandZ Top 100 Most Valuable Chinese Brands. As an Internet-based technology and cultural company, Tencent has benefitted greatly from the rapid development and massive opportunities of China’s digitalization. Nowadays, digital connectivity and new technological innovations are intertwined with all forms of economic, cultural and social activities. 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,” said Seng Yee Lau, Senior Executive Vice President, Chairman of Tencent Advertising and Chairman of Group Marketing and Global Branding.

He continued, “In the future, Tencent will continue hold fast to its 'connecting everything' strategy. This means that we will fully leverage the Internet and new technological connectivity and innovation to empower every connected individual and organisation, enable more Chinese brands to be known and embraced by consumers locally and internationally, and become the new torchbearers of global innovation.”

Ctrip leads Travel Agency brands

Ctrip, China's largest online travel agency, and Qunar were recently listed on BrandZ's 2018 Top 100 Most Valuable Chinese Brands. According to WPP and Kantar Millward Brown, BrandZ's Top 100 Most Valuable Chinese Brands are assessed by combining financial data with interviews from over 400,000 Chinese consumers. This year's list, recorded a new high with the total brand value of the Top 100 Chinese Brands increasing 23% to $683.9 billion USD.

Ctrip and Qunar, both under the Ctrip Group, listed in the Top 100. Ctrip ranked 34th while securing first place amongst the travel agency brands. The Ctrip brand has seen growth of 36% compared to 2017 and a brand value of $3.63 billion USD. Qunar debuted on the list, ranking 63rd with a brand value of $1.15 billion USD.

With the growth of the Chinese economy, the travel industry within China has seen tremendous growth with a positive forecast for the future. According to the China National Tourism Administration, the number of outbound tourists increased 5.1% in the first half of 2017 reaching 62 million travelers and a total of 130 million outbound trips in 2017. An estimated 115.29 billion USD was spent in 2017 with a year-on-year increase of 5%. Chinese domestic tourism also increased 2.4% to 69.5 million travelers during the first half of 2017.

The full infographic is available here.

ABOUT THE AUTHOR

Angelos Restanis

Angelos is the news editor for TravelDailyNews Media Network (traveldailynews.gr, traveldailynews.com and traveldailynews.asia). His role includes to monitor the hundrends of news sources of TravelDailyNews Media Network and skim the most important according to our strategy. He currently studies Communication, Media & Culture in Panteion University of Political & Social Studies of Athens.