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2014

2014 BrandZ Top 100 Most Valuable Chinese Brands Unveils China is Increasingly a Consumer-driven Market

Brand value growth of non-SOEs (state-owned enterprises) is three times greater than SOEs

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BEIJING, Dec. 2, 2013 /PRNewswire/ -- The 2014 WPP BrandZ™ Top 100 Most Valuable Chinese Brands study, commissioned by WPP and undertaken by Millward Brown, has been unveiled today. The ranking shows that China is increasingly a consumer-driven market amid the government's increased emphasis on rebalancing the domestic economy.

Market-driven brands (private companies without government backing) in the Top 50 of the ranking enjoyed value growth of 27 percent -- three times that of state-owned enterprises (SOEs) at 9 percent.

This is the first year the study has been expanded from 50 to 100 brands. A year-on-year comparison of the Top 50 shows an increase in total value of 13 percent in 2014 compared to last year, when it dropped 1.6 percent. China Mobile continues to be the nation's most valuable brand, retaining the No.1 spot for the fourth year running with a value of US$61.4 billion, up 21 percent on 2013.

Technology, last year's highest growing category, continues to rise in brand value – this year technology brands increased their value 28 percent overall. Tencent (US$33.9 billion) rose two positions to No.3 after growing its value 68 percent, and is the leading market-driven brand.

Most categories achieve value growth

Brand value increased in 11 categories, including technology: financial institutions (7%), airlines (9%), oil and gas (8%), insurance (11%), telecom providers (17%), apparel (21%), home appliances (36%), food and dairy (62%), health care (67%) and travel agency (98%).

The alcohol category declined 6 percent in value overall as baijiu and wine brands felt the impact of the reduction in government spending on entertaining, and faced fierce competition from foreign brands.

An expansion of the ranking from 50 to 100 brands has seen brands in eight new categories enter the ranking this year: cars, catering, education, furniture, hotels, jewelry retailers, personal care and real estate. This reflects consumers' increasing purchasing power and changing shopping habits – they are spending more on leisure activities and taking care of themselves, while continuing to aspire to own a car and a home.

Among the Top 50 brands in the ranking, 12 feature for the first time: China Minsheng Bank; Vanke, Poly Real Estate, Evergrande Real Estate and Country Garden (real estate); PICC and New China Life (insurance); Yanghe and Lu Zhou Lao Jiao (alcohol), Belle (apparel), NetEase and 360 (technology). BYD (cars) made a comeback at No.49 having dropped out of last year's ranking.

Top risers and big turnarounds illustrate successful brand building

Health care brand CR Sanjiu (No.48) is the joint biggest riser with a brand value increase of 86 percent (US$841 million), driven in part by Chinese consumers' growing attention to personal wellbeing. The third highest riser Yunnan Baiyao (up 72 percent, to US$3 billion) also benefited from this trend.

Dairy brand Yili grew 86 percent (US$5.1 billion), making it the other top riser in the ranking and China's 15th most valuable brand, due in part to rebuilding consumer trust with its 'open factory' campaign, which allowed the public and the media to see the production process. Mengniu turned a 31 percent decrease in 2013 into a rise of 30 percent in this year's ranking (US$3.1 billion) with the same strategy. Tencent (US$33.9 billion) was the fourth top riser with value growth of 68 percent, followed by Shuanghui (US$2.7 billion), up 60 percent.

Bucking the downward trend in the alcohol category, beer brands Tsingtao Beer, Snow Beer and Harbin Beer all achieved double-digit value growth thanks to creative interactions with consumers. Travel service provider Ctrip boosted its value 47 percent after a 39 percent decline last year, having continuously innovated to stand out from the competition with developments including a new mobile hotel booking app.

Key trends highlighted in this year's research report include:

  • The rise of the market-driven brands. While SOEs contribute 71 percent of the total value of the Top 100, a direct comparison of the Top 50 shows that market-driven brands are enjoying faster growth -- 27 percent compared with SOEs' 9 percent. Brand contribution, a BrandZ metric of the influence of brand alone, is stronger for market-driven brands than SOEs, indicating they have huge potential for development. Young brands -- those that have been operating for 20 years or less -- contribute to nearly 50 percent of the total value of the Top 100.
  • Chinese brands lag behind foreign competitors on meaningful difference. While consumers bonded with Chinese brands on the basis of their price and 'fame', they find foreign brands stronger on meaningful difference -- a key ingredient in a strong brand, which stimulates consumer loyalty and value growth. This shows where Chinese brands need to focus to better compete against foreign brands.
  • Globalization continues. The Chinese brands that get the highest proportion of their revenue from overseas markets are Lenovo (57%), Air China (34%) and China Eastern Airlines (33%). Global consumers are more likely to buy from Chinese brands in the computer, technology or home appliance categories.

The BrandZ™ Top 20 Most Valuable Chinese Brands 2014

Rank 2014

Brand

Category

Brand value
2014 ($M)

Brand value change
2014 vs 2013 (%)

Rank change

Ownership

1

China Mobile

Telecom providers

61,399

21%

-

Strategic SOE

2

ICBC

Financial institutions

39,658

-2%

-

Strategic SOE

3

Tencent

Technology

33,879

68%

2

Market Driven

4

China Construction Bank

Financial institutions

25,510

6%

-1

Strategic SOE

5

Baidu

Technology

19,986

-12%

-1

Market Driven

6

Agricultural Bank of China

Financial institutions

19,318

12%

-

Strategic SOE

7

Bank of China

Financial institutions

13,636

0%

1

Strategic SOE

8

PetroChina

Oil & gas

13,433

12%

3

Strategic SOE

9

Sinopec

Oil & gas

13,133

5%

1

Strategic SOE

10

China Life

Insurance

12,702

-12%

-3

Strategic SOE

11

Ping An

Insurance

11,128

5%

1

Market Driven

12

Moutai

Alcohol

10,504

-19%

-3

Competitive SOE

13

China Telecom

Telecom providers

8,168

-5%

-

Strategic SOE

14

China Merchants Bank

Financial institutions

6,785

0%

-

Strategic SOE

15

Yili

Food and dairy

5,068

86%

6

Market Driven

16

Bank of Communications

Financial institutions

4,906

-1%

-1

Strategic SOE

17

China Unicom

Telecom providers

4,404

6%

-1

Strategic SOE

18

Air China

Airlines

3,653

12%

-

Strategic SOE

19

China Minsheng Bank

Financial institutions

3,416

new

new

Market Driven

20

CPIC

Insurance

3,396

-2%

-3

Market Driven

For the full rankings and analysis, download the full report: http://www.brandz.com/

David Roth, CEO EMEA and Asia, The Store, WPP's global retail practice said: "We are entering the era of a rebalancing China and this is already having a big impact on brands, as seen in the 2014 rankings. When the world's most populous nation fuels its growth on domestic consumption, a more market-driven economy of strong brands will be essential for competitive success. Our analysis reveals a look into the future of brands in China: there is a new breed of younger, market-driven Chinese brands positioning themselves for growth."

Doreen Wang, Head of Branding, Millward Brown China, commented: "As the BrandZ™ Top 100 Most Valuable Chinese Brands study shows, strong, market-driven brands that focus on understanding consumers' needs and continuous brand building grow their value faster. Strong brands are built on relevance, salience and meaningful difference -- and Chinese brands must invest in delivering these attributes through developing an emotional bond with consumers, being ready to meet emerging needs and becoming more market oriented. Those brands that are planning to go global, meanwhile, should consider whether their products are in one of the categories favored by global markets, and also leverage in their communications those aspects of Chinese culture appreciated by overseas consumers."

ENDS

NOTES TO EDITORS:

The BrandZ™ Top 100 Most Valuable Chinese Brands (previously Top 50) -- now in its fourth year -- is part of the suite of BrandZ rankings which also includes the BrandZ Top 100 Most Valuable Global Brands and the BrandZ Top 50 Most Valuable Latin American Brands.

Background and methodology

The brand valuation behind the Top 100 was conducted by Millward Brown Optimor. The methodology mirrors that used to calculate the annual BrandZ Top 100 Most Valuable Global Brands ranking which is now in its eighth year.

Commissioned by WPP, the ranking combines financial data from Bloomberg and Kantar Worldpanel with consumer opinions gathered from interviews with over 405,700 Chinese consumers in total since the ranking first launched in 2008, and 19,000 in 2013. The BrandZ™ Top 100 Most Valuable Chinese Brands is the most definitive and robust ranking of Chinese brands available.

The brands ranked in the BrandZ™ Top 100 Most Valuable Chinese Brands 2014 report meet these three eligibility criteria:

  • The brand was originally created by a Mainland China enterprise.
  • The brand is owned by a publicly traded enterprise.
  • The brand reported positive earnings for the period covered by the ranking.

In addition, the financial institutions category includes only banks that derive at least 20 percent of their earnings from retail banking.

The BrandZ™ rankings are the only valuations in the world that take into account what people think about the brands they buy, alongside rigorous analysis of financial data, market valuations, analyst reports and risk profiles. Consumer perception of a brand is a key input in determining brand value, because brands are a combination of business performance, product delivery, clarity of positioning and leadership.

About Millward Brown

Millward Brown is a leading global research agency specializing in advertising effectiveness, strategic communication, media and brand equity research. Millward Brown helps clients grow great brands through comprehensive research-based qualitative and quantitative solutions. Millward Brown operates in more than 55 countries and is part of Kantar, WPP's data investment management division. Learn more at www.millwardbrown.com.

About WPP

WPP is the world's largest communications services group with billings of US$70.5 billion and revenues of US$16.5 billion. Through its operating companies, the Group provides a comprehensive range of advertising and marketing services including advertising & media investment management; data investment management; public relations & public affairs; branding & identity; healthcare communications; direct, digital, promotion & relationship marketing and specialist communications. The company employs over 170,000 people (including associates) in over 3,000 offices across 110 countries. For more information, visit www.wpp.com.

WPP was named Holding Company of the Year at the 2013 Cannes Lions International Festival of Creativity for the third year running. WPP was also named, for the second consecutive year, the World's Most Effective Holding Company in the 2013 Effie Effectiveness Index, which recognizes the effectiveness of marketing communications.

BrandZ™ Top 100 Most Valuable Chinese Brands 2014

Rank 2014

Brand

Category

Brand Value
US$ Mil.

Brand Value
% Change
2014 vs. 2013

 Brand Contribution

1

China Mobile

Telecom Providers

61,399

21%

4

2

ICBC

Financial Institutions

39,658

-2%

2

3

Tencent

Technology

33,879

68%

4

4

China Construction Bank

Financial Institutions

25,510

6%

2

5

Baidu

Technology

19,986

-12%

5

6

Agricultural Bank of China

Financial Institutions

19,318

12%

2

7

Bank of China

Financial Institutions

13,636

0%

2

8

PetroChina

Oil & Gas

13,433

12%

2

9

Sinopec

Oil & Gas

13,133

5%

2

10

China Life

Insurance

12,702

-12%

3

11

Ping An

Insurance

11,128

5%

2

12

Moutai

Alcohol

10,504

-19%

4

13

China Telecom

Telecom Providers

8,168

-5%

4

14

China Merchants Bank

Financial Institutions

6,785

0%

2

15

Yili

Food & Dairy

5,068

86%

5

16

Bank of Communications

Financial Institutions

4,906

-1%

2

17

China Unicom

Telecom Providers

4,404

6%

2

18

Air China

Airlines

3,653

12%

3

19

China Minsheng Bank

Financial Institutions

3,416

new

2

20

CPIC

Insurance

3,396

-2%

2

21

Mengniu

Food & Dairy

3,105

30%

5

22

Yunnan Baiyao

Health Care

2,990

72%

4

23

Shuanghui

Food & Dairy

2,679

60%

3

24

Lenovo

Technology

2,585

15%

3

25

Vanke

Real Estate

2,547

new

3

26

PICC

Insurance

2,361

new

2

27

Yanghe

Alcohol

1,977

new

3

28

Poly Real Estate

Real Estate

1,921

new

3

29

China Eastern Airlines

Airlines

1,878

8%

3

30

New China Life

Insurance

1,723

new

2

31

Tsingtao Beer

Alcohol

1,722

40%

5

32

Gree

Home Appliances

1,657

2%

3

33

Tong Ren Tang

Health Care

1,610

50%

4

34

China Southern Airlines

Airlines

1,598

5%

3

35

Suning

Consumer Electronics

1,586

-19%

2

36

ChangYu

Alcohol

1,450

-53%

4

37

Haier

Home Appliances

1,443

10%

4

38

Country Garden

Real Estate

1,337

new

3

39

Evergrande Real Estate

Real Estate

1,295

new

3

40

Midea

Home Appliances

1,214

13%

3

41

Sina

Technology

1,172

-2%

5

42

Belle

Apparel

1,170

new

4

43

360

Technology

1,106

new

4

44

Bright

Food & Dairy

1,012

42%

5

45

NetEase

Technology

996

new

3

46

Wu Liang Ye

Alcohol

937

-66%

4

47

Luzhou Laojiao

Alcohol

923

new

4

48

CR Sanjiu

Health Care

841

86%

3

49

BYD

Cars

780

new

1

50

Snow Beer

Alcohol

764

13%

4

51

New Oriental

Education

754

new

4

52

Harbin Beer

Alcohol

720

20%

4

53

Dabao

Personal Care

718

new

2

54

Ctrip

Travel Agency

718

47%

2

55

Industrial Bank

Financial Institutions

604

new

1

56

Longfor

Real Estate

595

new

3

57

Hainan Airlines

Airlines

572

9%

2

58

Lao Feng Xiang

Jewelry Retailer

554

new

4

59

Tata

Apparel

552

new

4

60

Yanjing Beer

Alcohol

518

-11%

5

61

Metersbonwe

Apparel

458

-62%

3

62

Robam

Home Appliances

457

new

4

63

Gemdale

Real Estate

454

new

2

64

Fulinmen

Food & Dairy

450

14%

5

65

Gujing Gong Jiu

Alcohol

430

new

3

66

R&F Properties

Real Estate

424

new

3

67

Home Inn

Hotels

421

new

4

68

Eastern Gold Jade

Jewelry Retailer

404

new

4

69

China Everbright Bank

Financial Institutions

391

new

2

70

SOHO China

Real Estate

370

new

2

71

Suofeiya

Furniture

363

new

4

72

Greentown China

Real Estate

353

new

1

73

Anta

Apparel

338

8%

3

74

Youngor

Apparel

314

-30%

3

75

Daphne

Apparel

312

new

4

76

Sanquan

Food & Dairy

308

new

4

77

China Overseas Property

Real Estate

294

new

1

78

Hisense

Home Appliances

280

new

2

79

Swellfun

Alcohol

268

new

3

80

Quanjude

Catering

259

new

4

81

Septwolves

Apparel

258

-60%

3

82

Supor

Home Appliances

253

new

4

83

CITS

Travel Agency

252

new

2

84

Hanting

Hotels

239

new

4

85

Pearl River

Alcohol

234

new

3

86

ZhongHua

Personal Care

218

new

4

87

Sohu

Technology

208

new

3

88

China Taiping

Insurance

202

new

1

89

Huatian Hotel

Hotels

201

new

4

90

Ming Jewelry

Jewelry Retailer

164

new

4

91

Aokang

Apparel

162

new

4

92

Semir

Apparel

158

-45%

2

93

Yonghe King

Catering

152

new

3

94

Bosideng

Apparel

146

new

3

95

Great Wall

Alcohol

142

new

5

96

Jinjiang Inn

Hotels

141

new

4

97

Lao Miao

Jewelry Retailer

139

new

4

98

Macro

Home Appliances

135

new

4

99

Xueersi

Education

134

new

4

100

Yashili

Food & Dairy

132

new

3

SOURCE Millward Brown



RELATED LINKS
http://www.brandz.com/
http://www.millwardbrown.com
http://www.wpp.com

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