BrandZ_2015_China_Top100_Report_EN

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Part 1 | Introduction - Top Performers TOP 100 Most Valuable Chinese Brands 2015 TOP PERFORMERS | Brand Value Growth Market-driven brands rise in value, led by Tencent Market responsiveness, rather than size or government support, today drives brand value growth in China, as reflected in the BrandZ ranking of brands according to year-on-year value growth. Of the Top 10 in brand value growth, eight are market drivenbrands. And both SOEs (State Owned Enterprises) are classified as Competitive SOEs. These brands are more responsive to market forces than Strategic SOEs, such as banks, oil and gas companies or telecoms, which act in part as agents of government policy. Almost doubling in value, with a 95 percent increase in brand value, Tencent leads the list of the fastest rising brands. This performance is particularly impressive because it follows several years of strong value gains. The Internet portal acquired new search, social media and gaming businesses. It continued to benefit from the popularity of WeChat, the messaging and sharing application. Technology and education are the most represented categories, with two brands each. Technology and education are expanding categories that help propel brand growth, which is not the case for all of the other six categories represented: alcohol, cars, hotels, jewelry retail, food and dairy and travel agencies. There are examples of fast-rising brands that have excelled in challenging categories, however, indicating the potential of a strong brand to outperform its category. Perhaps the best example is Pearl River, a beer that increased 48 percent in brand value, while the alcohol category declined 22 percent in overall brand value as consumption slowed. Pearl River focused on expanding geographically and establishing its premium beer credentials. And although the brand value of the hotels category remained flat, Hanting grew 45 percent in brand value. Hanting continued its rapid roll out of locations and gained 90 percent of its bookings from its loyalty program members. In food and dairy, a category still recovering from food safety breaches of a few years ago, Mengniu, which rose 57 percent in brand value, emphasized a new focus on food that’s healthy and nutritious. It’s difficult to reduce the success of all brand value growth leaders to one common theme or shared attribute, but many brands attempted to better understand their customers and meet their changing needs. Xueersi and New Oriental, which grew 64 percent and 56 percent, respectively, in brand value, are in the education category, which itself appreciated 57 percent in brand value, mostly on the strength of these brands and their agility in understanding consumer desire for education. Xueersi added physical locations and grew its online business. Enrollment surpassed one million for the first time. New Oriental launched an online education joint venture with Tencent. Certain brands, such Ctrip and BYD, the number two and three in the brand value growth ranking, helped drive the overall brand value growth of their categories. Ctrip entered into several important strategic partnerships and reached the point where it transacted 80 percent of sales online or by mobile. A leader in the production and marketing of electric and hybrid vehicles, BYD benefited from government policies that encouraged the purchase of energy efficient cars. The Top 10 Risers in Brand Value Growth Because the BrandZ Most Valuable Chinese Brands report expanded from 50 to 100 brands in 2014, this 2015 edition for the first time includes year-to-year value changes for 100 brands. Brand Brand Value % Change 2015 vs. 2014 Category 1 Tencent 95% Technology 2 Ctrip 71% Travel Agencies 3 BYD 69% Cars 4 Xueersi 64% Education 5 Ming Jewelry 59% 6 Mengniu 57% Jewelry Retailer Food & Dairy 7 New Oriental 56% Education 8 Baidu 55% Technology 9 Pearl River 48% Alcohol 10 Hanting 45% Hotels Ownership Brand Value US$ Mil. Top 100 Rank 2015 Market- Driven Firm 66,077 1 Market- Driven Firm Market- Driven Firm Market- Driven Firm Market- Driven Firm Competitive SOE Market- Driven Firm 1,224 44 1,314 41 219 92 260 85 4,869 18 1,179 45 Market- Driven Firm 30,897 5 Competitive SOE Market- Driven Firm 347 79 348 78 Source: BrandZ / Millward Brown 76 77
Part 1 | Introduction - Top Performers TOP 100 Most Valuable Chinese Brands 2015 TOP PERFORMERS | Brand Contribution The Top 20 in Brand Contribution Market-driven brands dominate the Top 20 Brand Contribution ranking, with 13 entries. Market-driven brands lead brand contribution ranking Brand contribution measures the impact of brand alone, without financials or other factors, in the mind of the consumer. A high brand contribution score – on a scale of one to five, five being the highest – suggests that a brand is resilient and likely to produce strong future earnings. Market-driven brands dominate the Top 20 Brand Contribution ranking, with 13 entries. Of the seven SOEs (State Owned Enterprises) ranked, five are Competitive SOEs, state owned enterprises in consumer-facing categories where a strong brand is critical for sustained success. Even the two ranked Strategic SOEs, China Mobile and China Telecom, are consumer facing. Strategic SOEs, like banks or oil and gas giants, are typically tasked with implementing government policy. The Top 20 brand contribution leaders come from 11 different categories and from throughout the BrandZ China Top 100 ranking, from number one, Tencent, the Internet portal, to number 87, Supor, a home appliance brand, suggesting that high brand contribution is possible regardless of category or brand size. In fact, brands that appear lower in value in the BrandZ China Top 100 generally score higher in brand contribution. That’s because market-driven brands dominate in the lower ranks, and these brands, compared with the giant Strategic SOEs, depend more on the power of their brands in the marketplace. And they derive more of their brand value from that power, which is an indicator of future growth potential. Food and dairy and technology are the most represented categories with four brands each. Food and dairy includes three competitive SOE brands, Mengniu, Fortune and Bright, and Yili, which is a market-driven brand. Brand contribution may have been among the factors that helped sustain these brands even as the category lost public confidence after a series of food safety breaches several years ago. The technology brands – Letv, Baidu, Sina and Tencent – are each market driven. Letv, which ranks highest in brand contribution, is a streaming video site that’s constantly in front of consumers. Similarly, Baidu is China’s leading search engine, Sina operates the popular Weibo social networking platform and Tencent, China’s most valuable brand, is its ubiquitous Internet portal, a kind of combination of Facebook and Google. Brands ranked lower score higher in brand contribution Brands ranked lower in the BrandZ China Top 100 generally score higher in brand contribution because marketdriven brands dominate in the lower ranks. These brands exert greater influence over consumer purchasing choices. 3.0 3.10 3.18 Ranking 1-10 Ranking 11-50 7 SOEs, 3 Market-Driven brands 18 SOEs, 22 Market-Driven brands 20 SOEs, 30 Market-Driven brands Ranking 51-100 Source: BrandZ / Millward Brown Brand contribution measures the influence of brand alone on earnings, on a 1-5 scale, 5 highest. Brand Brand Contribution Category 1 Letv 5 Technology Ownership Market-Driven Firm Top 100 Rank 2015 2 Mengniu 5 Food & Dairy Competitive SOE 18 3 Baidu 5 Technology 4 Yili 5 Food & Dairy Market-Driven Firm Market-Driven Firm 5 Fortune 5 Food & Dairy Competitive SOE 83 6 New Oriental 5 Education 7 Lao Feng Xiang 5 Jewelry Retailer 8 Tsingtao Beer 5 Alcohol 9 Sina 5 Technology 10 Supor 5 11 China Mobile 5 Home Appliances Telecom Providers Market-Driven Firm Source: BrandZ / Millward Brown Brand contribution measures the influence of brand alone on earnings, on a 1-5 scale, 5 highest. 37 5 17 45 Competitive SOE 60 Market-Driven Firm Market-Driven Firm Market-Driven Firm 31 47 87 Strategic SOE 3 12 Quanjude 5 Catering Competitive SOE 81 13 Belle 5 Apparel Market-Driven Firm 14 Bright Dairy 5 Food & Dairy Competitive SOE 49 15 Home Inn 5 Hotels 16 Hanting 4 Hotels 17 Suofeiya 4 Furniture 18 China Telecom 4 19 Robam 4 Telecom Providers Home Appliances 20 Tencent 4 Technology Market-Driven Firm Market-Driven Firm Market-Driven Firm 56 66 78 75 Strategic SOE 13 Market-Driven Firm Market-Driven Firm 65 1 78 79
Page 1: CHINESE BRANDS COME OF AGE Brand va
Page 4 and 5: TOP 100 Most Valuable Chinese Brand
Page 6 and 7: TOP 100 Most Valuable Chinese Brand
Page 8 and 9: 1PART INTRODUCTION
Page 10 and 11: Part 1 | Introduction - Overview TO
Page 12 and 13: CHINESE CONSUMERS ARE CONNECTED ALL
Page 14 and 15: Part 1 | Introduction - Overview TO
Page 16 and 17: AS TIGHT CREDIT SLOWS REAL ESTATE E
Page 18 and 19: Part 1 | Introduction - Highlights
Page 20 and 21: Part 1 | Introduction - Highlights
Page 22 and 23: Part 1 | Introduction - Background
Page 24 and 25: Part 1 | Introduction - Background
Page 26 and 27: Part 1 | Introduction - Market Dyna
Page 34 and 35: Part 1 | Introduction - Brand China
Page 36 and 37: Part 1 | Introduction - Chinese Dre
Page 40 and 41: CROSSCURRENTS OF CHINESE LIFE ARE L
Page 42 and 43: Part 2 | Thought Leadership TOP 100
Page 52 and 53: MANY CHOOSE BRANDS TO EXPRESS PERSO
Page 54 and 55: The BrandZ TM Top 100 Most Valuable
Page 56 and 57: Part 3 | The China Top 100 - Catego
Page 62 and 63: BRAND PROFILES
Page 64 and 65: Part 3 | The China Top 100 - Brand
Page 72 and 73: Part 3 | The China Top 100 - Our In
Page 82 and 83: Part 3 | The China Top 100 - Our In
Page 84 and 85: BRANDS ARE EXTENDING INTO NEW PRODU
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Part 3 | The China Top 100 - Brand
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Part 3 | The China Top 100 - Our In
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Part 4 | Brand Building Best Practi
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AS CHINA’S MEDIA CONSUMPTION RAPI
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Part 5 | Resources - Index of Brand
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Part 5 | Resources - Methodology Wh
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Part 5 | Resources - WPP Company Co
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Part 5 | Resources - WPP Brand Buil
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