China's top brands see value grow by 12 percent: survey
China's most valuable brands have seen a 12 percent increase in value this year to US$996 billion, representing their ability to build and sustain value in the most difficult time, according to the latest BrandZ China Top 100 list.
Alibaba, Tencent and Moutai retained the top three spots. In terms of industry category, technology contributed a quarter of the ranking’s total value, with retail players around a fifth.
The BrandZ listing is commissioned by WPP and conducted by market research firm Kantar. It ranks brands based on what they contribute to the corporate value of their owners.
Each of the top 10 fastest-rising Chinese brands saw their value grow by over 50 percent, with their digital services picking up amid pandemic outbreak.
Only five brands that were in the top 10 a decade ago when the rankings started still remained there today.
The quickest risers include education provider TAL Education, New Oriental and VIPKID, along with alcohol brand Wu Liang Ye.
The study also pointed out that exponential growth has been driven by the ability of the most valuable brands to align with the major trends shaping the Chinese market, including the desire for self-improvement and wellness, rapid urbanization and heightened national pride.
Doreen Wang, CEO of Kantar China and global head of BrandZ, said: “It has never been more critical for brands to respond to shifting consumer priorities."
She also noted that "understanding Chinese consumers today, in all their diversity, depends on having deep human-centerd insights and brands must then act on those insights, making bold changes where necessary."
There are 16 newcomers this year, led by short-form video brand Douyin (known overseas as TikTok) in 14th position and e-commerce group-buying platform Pinduoduo in 23rd.
The survey measured consumer brand preferences and how that translated into buying habits and price premiums and their ranking was based on stock price performance and corporate market valuation as of April 2020, reflecting the effects of the pandemic.
Globally, the top 100 brands' combined value hit US$5 trillion, adding US$277 billion from a year ago.