The annual BrandZ Top 100 Most Valuable Chinese Brands ranking was finally released in Beijing on May 6. Alibaba has been crowned as most valuable firm. Xiaomi, Lenovo, Huawei are growing too
The report, jointly draft by WPP and its research firm Kantar Millward Brown, shows how despite PRC-US international trade frictions and China’s slower economic growth, the total value of the BrandZ Top 100 Most Valuable Chinese Brands increased 30% to US$889.7 billion, the highest annual rise since the ranking launched in the year 2011.
The growth has been supported by brands’ expansion into new markets such as China’s lower tier cities – which have seen rapid development and rising consumer buying power – and increasingly positive attitudes to Chinese consumer brands with a global presence. Technology accounted for more brands than any other categories in the Top 100 (11), contributing 26% of the ranking’s total value and dominating the top 10 leaders in terms of Overseas Presence with six brands, double the number of last year.
The report crowned Alibaba as the most valuable brand in China for the first time in the annual ranking. Hangzhou-based e-commerce giant has grown its brand value by 59 percent year-on-year to $141 billion. But other hi-tech firms such as Huawei (No.6, US$33.2 billion), smartphone maker Xiaomi (No.11, US$20.6 billion), Lenovo (No.47, US$2.9 billion), the world’s largest drone-maker DJI (No.50, US$2.8 billion), ZTE (No.72, US$1.2 billion) and robot company UBTECH (No.85, US$910 million), are growing faster too.
Thirteen of the 24 categories increased in value, with entertainment seeing the largest year-on-year growth of 186%, followed by education (57%) and retail (55%). AI, e-commerce, New Retail and social media perform strongly but study include four new categories: consumer finance, entertainment, lifestyle platforms and transport. The fastest rising brands are video streamers iQiyi (No.28, US$5.6 billion) and Youku (No.31, US$5.0 billion), up 158% and 136% in value respectively.
Xiaomi, services booking app Meituan (No.13, US$19.9 billion), food delivery app Ele.me (No.24, US$7.3 billion) and consumer finance brand Lufax (No.26, US$6.9 billion), which specialises in peer-to-peer lending, are the most valuable brands among a record number of 17 newcomers to the ranking this year. Their success, according to BrandZ, has been driven by a mobile-centric, convenience-driven Chinese lifestyle.
The report has finally unveiled how the digitisation and sophistication of Chinese consumers is creating a unique marketplace of products and services available with unprecedented speed and convenience.