Tencent nearly doubles its value to become China’s most valuable brand of 2015
Tencent and Alibaba have pushed long-time leader China Mobile out of the top two spots for the fifth annual BandZTM Top 100 Most Valuable Chinese Brands in 2015, by leading global research agency Millward Brown in conjunction with WPP.
The Top 100 Chinese Brands (previously the top 50) are valued at $464.2 billion, a rise of 59% since the ranking launched in 2011. This growth has outpaced the BrandZTM Top 100 Most Valuable Global Brands (up 41%).
The top 10 most valuable Chinese brands in 2015
1. Tencent (technology): $66,077 million,
2. Alibaba (retail): $59,684 million,
3. China Mobile (telecom provider): $55,927 million,
4. ICBC (financial institution): $34,521 million,
5. Baidu (technology): $30,897 million,
6. China Construction Bank (financial institutions): $21,005 million,
7. Sinopec (oil and gas) $15,493,
8. Agricultural Bank of China (financial institution) $15,427 million,
9. PetroChina (oil and gas): ($12,022), and
10. Bank of China (financial institution): $11,861.
In terms of value growth, state owned enterprises (SOEs) declined 9%. Brands from private enterprises, also known as ‘market-driven’ brands, have risen 97% since 2013. Analysis of the top 50 brands over the past five years shows a long-term trend: the rise of market-driven brands, growing 278%, compared with 6% for SOEs.
Five years ago, the top five brands were all SOEs, but in 2015 three out of the top five;
Tencent, Alibaba and Baidu, are market-driven. Together the three represent nearly half (48%) of the value of the top 10. Tencent has nearly doubled its value in the past year.
EMEA and Asia CEO, David Roth says brands that have grown in value have “constantly innovated, based on a sound understanding of rapidly evolving technology and consumer behaviour.”
Technology companies account for 23% of the top 100’s total value, surpassing the financial institutions as the highest category.
Retail, cars, technology are the fastest-growing categories. With a ‘phenomenal increase’ of 3,827% due to the inclusion of new entrant Alibaba, retail is the fastest growing category. The car category grew 141% in value, and technology increased by 78%.
“Investment in brand, innovation and connecting with consumers will now be the critical success factors for brands operating in increasingly competitive categories,” says Roth.