BrandZ_2015_China_Top100_Report_EN

Part 1 | Introduction - Overview
TOP 100 Most Valuable Chinese Brands 2015
OVERVIEW | Key Results
Market-driven brands drive
increase in Top 100 value
THE BRANDS
• The BrandZ Top 100 Most
Valuable Chinese Brands 2015
increased 22 percent in total
brand value year-on-year, to
$464.2 billion.
• Almost doubling in value
in one year, Tencent the
Internet portal, rose to the
number one rank, surpassing
China Mobile, which had
occupied the top spot since
the inception of the BrandZ
China ranking in 2011. Tencent
brand value increased 442
percent over the past five
years.
• The rise of Tencent reflected
the strong brand value
growth of market-driven
brands compared with SOEs
(State Owned Enterprises).
The value of market-driven
brands rose 97 percent
year-on-year, while the value
of SOE brands declined 9
percent.
• Because of the rapid rise in
the value of market-driven
brands, the value of the
BrandZ Top 100 Most
Valuable Chinese Brands
now is roughly evenly split
between market-driven
brands, 47 percent, and SOEs,
53 percent.
• Three market-driven brands
– Tencent, Alibaba and Baidu
– comprise about half of the
value of the Top 10 most
valuable brands.
• Alibaba appeared for the
first time in the BrandZ Top
100 Most Valuable Chinese
Brands, ranking number two
after Tencent and ahead of
China Mobile, based on rapid
appreciation in brand value
following its record-setting
IPO (Initial Public Offering),
which raised $25 billion.
• Two brands derived over
half of their revenue from
outside of China: technology
company Lenovo gained 62
percent abroad; and ZTE, the
telecom equipment maker,
53 percent. This development
suggests the growing global
presence of Chinese brands.
• During the past five years,
the BrandZ Top 50 most
Valuable Chinese Brands
increased 59 percent in value,
outpacing the BrandZ Top
50 Most Valuable Global
brands, which grew 41
percent in value during a
comparable period.
• Over the 51 months between
July 2010 and October 2014,
the MSCI, a weighted index
of Chinese stocks, increased
4 percent. In contrast, the
BrandZ China Top 100
Portfolio (all of the Top
100 Most Valuable Brands)
appreciated 32 percent.
The results illustrate how
valuable brands deliver strong
shareholder return.
THE CATEGORIES
• Of the 21 product and service
categories tracked in this
report, 12 categories rose in
value, seven declined and
two remained unchanged.
Slower economic growth and
government policy changes
impacted categories that
declined in value, which
included alcohol, apparel and
banks, for example.
• Retail led the categories in
brand growth. Retail grew
3,827 percent, driven by the
addition of Alibaba. But even
with Alibaba removed, retail
increased 64 percent. That
growth rate places retail just
after the technology category,
which improved 78 percent,
and cars, which grew 141
percent because the number
of car brands in the BrandZ
China Top 100 increased from
one to two.
• Two categories comprised
predominantly of marketdriven
brands – technology
and retail – are now among
the Top 5 categories in total
brand value, alongside three
categories dominated by SOEs
– banks, telecom providers and
insurance.
• Technology surpassed banks
as the category with the largest
total brand value, $106.9
billion, or almost one-quarter
of the total brand value of the
BrandZ Top 100 Most Valuable
Chinese Brands 2015.
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