Page 31 - BrandZ Top 100 Most Valuable Chinese Brands 2015

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Part1 | Introduction-MarketDynamics MARKET DYNAMICS | Going Global
TOP 100 Most Valuable Chinese Brands 2015
Chinese brands derive rising
Top 20 Chinese Brands in Overseas Revenue
Of the 20 Chinese brands that lead in the proportion of revenue derived from overseas business, half are market-driven.
revenue proportion overseas
Brand
1 Lenovo
2 ZTE Technology
Revenue % from International Business
62% 53% 34% 33% 33% 33% 30% 27% 22% 19% 17% 15% 14% 12% 12% 11% 11% 10% 9% 7%
A year ago Alibaba was unknown in the West. Today it’s the most publicized example of a Chinese brand with global ambitions and a resounding expression of western confidence in a Chinese brand and in China.
Technology
By raising $25 billion on the New York Stock Exchange, in the most lucrative IPO (Initial Public Offering) in history, Alibaba illustrates the potential brand value that can rapidly emerge from China.
For now, there are two Alibaba brands: the one that Chinese consumers see as a powerful ecommerce site; and the one viewed by westerners a singular investment opportunity. But those pictures will merge into stereoscopic alignment.
Meanwhile, even this distorted view of Alibaba should improve the international perception of Brand China, the cumulative notion of what Chinese
brands represent. And a more positive perception of Brand China will help facilitate the overseas acceptance of Chinese companies, not just as hot stocks, but also as consumer brands.
Two leading Chinese technology brands already gain a significant portion of their revenue overseas. Lenovo, the world’s leading
PC maker, drives 62 percent of annual revenue from overseas business. Global business drives 53 percent of revenue for ZTE, a maker of telecommunications equipment and systems.
That airlines and oil and gas companies also derive a lot of revenue from outside of China,
is not surprising. But so do the home appliance brands, both as manufacturers for other brands, and also from their own branded businesses. TCL gains one-third of revenue from overseas; Hisense, 30 percent; Midea, 22 percent; Gree, 15 percent; Haier, 11 percent; and Supor, 10 percent.
The brands with the highest proportion of revenue from overseas are SOEs (State Owned Enterprises): both Strategic SOEs, such as banks that help advance government policies, and Competitive SOEs in consumer-facing categories like food and dairy.
However, market-driven brands are building global business more rapidly, a development that resonates with Alibaba’s stock market success. Of the 20 Chinese brands that lead in the proportion of revenue derived from overseas, half are market driven.
That’s up from five market- driven brands only a year ago. Ecommerce giant Alibaba is among the new brands. But the market-driven brands operate in diverse categories, including:
cars, home appliances, real estate, retail and technology.
The global expansion of
Chinese brands depends on the determination of Chinese brands to shift from being manufacturers for western brands to being marketers of their own brands. The expansion also depends on changing international consumer perception of Brand China, so that the country long associated with low-price merchandise is viewed as a source for reliable, value-added products and services.
This transition would mirror
how consumer perceptions of
the products made in Japan or made in South Korea changed over time. And with China, the trajectory of change may be sharper, as illustrated not only by the explosive growth of Alibaba, but also by how a Chinese brand like Xiaomi, a maker of low price smart phones, can suddenly challenge South Korea’s Samsung for market share in China.
3 Air China
4 PetroChina
5 TCL
6 China Eastern
Airlines 7 Hisense
8 Sinopec 9 Midea
10 China Southern Airlines
11 Bank of China 12 GREE
13 BYD
14 Alibaba
15 Hainan Airlines
16 Country Garden
17 Haier
18 Supor
19 Great Wall
20 Tencent
Source: BrandZTM / Millward Brown
Airlines
Oil & Gas Home Appliances Airlines Home Appliances Oil & Gas Home Appliances Airlines Banks Home Appliances Cars
Retail Airlines
Real Estate Home Appliances Home Appliances Cars Technology
Category
Ownership
Competitive SOE Market-Driven Firm Strategic SOE Strategic SOE Competitive SOE Strategic SOE Competitive SOE Strategic SOE Market-Driven Firm Strategic SOE Strategic SOE Market-Driven Firm Market-Driven Firm Market-Driven Firm Strategic SOE Market-Driven Firm Market-Driven Firm Market-Driven Firm Market-Driven Firm Market-Driven Firm