Page 3 - BrandZ Top 100 Most Valuable Chinese Brands 2015

Brand value growth shifts sharply from SOEs to market driven-brands 59% five-year growth outpaces BrandZTM Global Top 100
This is the fifth anniversary edition of our BrandZTM report on the most valuable Chinese brands. In just five years our BrandZTM report has become the definitive annual resource for the understanding Chinese brands and the dynamics that drive value growth.
David Roth
CEO, The Store WPP EMEA and Asia
david.roth@wpp.com Twitter: davidrothlondon Blog: www.davidroth.com
We began this project with a ranking of the Top 50 most valuable Chinese Brands and expanded to 100 brands last year to more fully examine the rapid emergence of China’s valuable brands across 21 categories of products and services.
Identifying and ranking the most valuable brands was only the start of the process. We then analyzed the creation of brand value in China, uncovering the drivers that can help brand owners – both Chinese and western – build valuable brands in a rapidly changing China.
The development of valuable brands in China – and the future expansion of these brands onto the world stage – is interconnected with China’s explosive growth during the
past 35 years, the emergence of a prosperous middle class and the economic rebalance from production to consumption. Consider just of few this year’s highlights:
- Brand value increased
22 percent year-on-year, surpassing the growth of the BrandZTM Top 100 Most Valuable Global Brands and the most valuable brands of Brazil and Latam.
- The Internet portal Tencent doubled in brand value and claimed the number one position in the BrandZTM China Top 100, displacing China Mobile, which has held the top spot until now.
- Alibaba, the ecommerce giant, appeared in the BrandZTM China Top 100 for the first time – at number two – after its IPO (Initial Public Offering), which raised a record $25 billion and introduced the power of Chinese brands to the public worldwide.
Several consequential trends influence these impressive developments. Over the past five years, the growth of the BrandZTM China Top 50 has increased 59 percent. And during that period, brand value growth has shifted sharply from the SOEs (State Owned Enterprises) to market- driven brands.
Between July 2010 and October 2014, a BrandZTM stock portfolio, comprised of valuable brands with high brand contribution –
a BrandZTM measure of brand strength – increased 85 percent in value compared with the MSCI, a weighted index of Chinese stocks, which grew only 4 percent.
In other words, your $100 invested in a BrandZTM stock portfolio comprised of valuable brands with high brand contribution would be worth $185 today. Invested in the MSCI, your $100 would be worth only $104. Clearly, the investments made
to create valuable brands deliver superior shareholder returns.
These developments are important for anyone building brands in China for several reasons: (1) The market is open to more competitive activity; (2) Consumers are more receptive
to brands; (3) Brand building is more critical than ever; and (4) The ROI for building meaningfully different brands comes in revenue, profit and stock
market appreciation.
And as Chinese brands rapidly understand and create brand value, they increasingly aspire to international and global stature and look abroad for brand acquisition, collaboration and investment opportunities.
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TOP 100 Most Valuable Chinese Brands 2015
Fifth Anniversary Edition