Archive for January, 2015

Top 100 Most Valuable Chinese Brands 2015

Tuesday, January 27th, 2015

Tencent, Alibaba overtake long-time leader China Mobile to claim top two spots

WPP and Millward Brown today announced the fifth annual BrandZ? Top 100 Most Valuable Chinese Brands, with internet service company Tencent becoming the most valuable Chinese brand for the first time, and newly-listed online retailer Alibaba entering the ranking at No.2. Both brands leapfrogged long-time leader China Mobile, which had held the top spot since the ranking launched in 2011.

The 2015 ranking, carried out by marketing and brand consultancy Millward Brown in conjunction with WPP, clearly shows a rapid rise in the brand value of technology and tech-related retail brands. Technology companies have become brand powerhouses, and as a result the technology category has now surpassed financial institutions as the highest value category ($106.9 billion), contributing 23% of the Top 100’s total value.

Brands from private enterprises (also known as ‘market-driven’ brands) dominate in terms of value growth, rising 97% since 2013, while SOEs (state owned enterprises) declined 9%. Whereas five years ago the Top 5 brands were all SOEs, three of this year’s Top 5 – Tencent, Alibaba and Baidu – are market-driven. Together the three represent around half (48%) of the value of the Top 10, led by Tencent which nearly doubled in value in the past year alone.

The total brand value of the Top 100 Chinese Brands is $464.2 billion, a rise of 59% since the ranking launched in 2011. This growth has outpaced that of the BrandZ? Top 100 Most Valuable Global Brands (+41%), and has also surpassed the most valuable brands in Brazil (which fell 40% in value from 2011-2014) and Latin America (which have grown only 3% since the Latam ranking launched in 2012).

Analysis of the brands in the Top 100 as a stock portfolio proves that investment in brand-building delivers strong shareholder return. Between July 2010 and October 2014 the brands in the Chinese MSCI stock index increased 4% while those in the Top 100 appreciated 32%. (more…)