THE top 100 most valuable Chinese brands have a combined brand value of US$557.1 billion, gaining 6 percent from a year ago as consumers move from price to premium, a latest study shows.
The WPP and Kantar Millward Brown study shows that technology, banks and telecom providers were the biggest contributors in terms of the absolute size for brand value addition in the world’s second-largest economy.
Technology player Tencent remains China’s most valuable brand, growing its brand value 29 percent to US$106 billion.
Education and travel agencies were the fastest-growing sectors, up 46 percent.
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 2008. It first published a China ranking with the top 50 brands in 2011.
The need to provide for the aspirations and growing sophistication of consumers in China has changed the competitive dynamic for many brands, the study shows.
Digital technology now plays a part in every facet of daily life and newcomers to the listing such as e-commerce brand VIP.com (at No. 40) and quick gainers like Sina and NetEase reflect this trend.
The strong brand value growth we have seen this year in the technology, travel and education sectors demonstrate that brands that clearly meet a defined consumer need will thrive,” David Roth, CEO EMEA and Asia, The Store, WPP, said in a statement.
“China has come to terms with a new normal for its economy but there are still massive opportunities for strong distinct brands to address the aspirations of the rising urban middle class and drive superior value for shareholders," he added.
Globalization also proves to be a strong boost for domestic brands and Lenovo was the most export-focused brand in the BrandZ China Top 100 with 72 percent of its revenues coming from overseas revenue while Huawei secured 58 percent and ZTE 47 percent of their revenues from outside China.