Interbrand Releases 2011 Best China Brands Report
Dalian, China, September 15, 2011–Interbrand, the leading brand consultancy,
announces its 2011 Best China Brands ranking during the World Economic
Forum’s Summer Davos here in Dalian, China. China Mobile, China Life, China
Construction Bank (CCB), Industrial and Commercial Bank of China (ICBC),
Bank of China (BOC) and Ping An Insurance (Group) Company of China remain
in the top six spots, compared with 2010. Tencent, whose brand value has
increased 76% in the past twelve months, leaped to the seventh place. In
addition, China Taiping, China Everbright Bank, Belle International, Great Wall
Motor Company and Bank of Beijing make their debut on the list.
Mr. Serge Dumont, Vice Chairman, Omnicom, pointed out that “brands have
already become the new engine of growth for Chinese enterprises. Our 40
Omnicom-owned agencies operating in China represent every major marketing
and communications disciplines,” said Dumont. “They are committed to
developing Chinese talent to be best in class and help clients create, manage
and communicate their reputations and continuously increase the value of their
brands – in China and around the world.”
As the leading brand consultancy, Interbrand pioneered the research into the
brand valuation model in 1984 and its methodology has long been recognized
by the business world as a strategic management tool of unique value. The
2011 Best China Brands is the fourth annual ranking by Interbrand in the
Chinese market, utilizing a consistent valuation model with Interbrand’s Best
Global Brands. Based on financial data independently audited by a third party,
industry-specific studies and market data, the brand valuations provide a
benchmark for Chinese enterprises in the development of their brands. The
brand value calculated by Interbrand indicates the Net Present Value (NPV) of
brand earnings of the selected brands at the end of 2010 and onwards. This
consistent and transparent approach makes the ranking fair and comparable
around the world and over the years.
According to the ranking, the brand value of outstanding Chinese enterprises is
on the rise as China’s economy continues to grow, reflecting an evolution in
Chinese brands from best-in-class to world-class. During the past four years
(2007-2011), Baidu, Haier and Lining have been the fastest-growing brands in
terms of brand value, with Compound Annual Growth Rates (CAGR) of 84%,
68% and 39%, respectively. Bank of Beijing ranks 50th this year with a brand
value of 1.36 billion Yuan, an increase of 210 million yuan from the 50th brand
last year. The total brand value of the top 25 2011 Best China Brands reached
896.17 billion Yuan in 2011, a 13.5% increase from 2010. Interbrand’s Global
CEO Jez Frampton: “The shift from best-in-class to world-class demonstrated
by these Chinese brands shows that brands are playing an increasingly
important role in pushing forward the development of Chinese enterprises. The
members of this year’s list are shining examples of how Chinese enterprises can
use their brands to create new opportunities for growth and deliver greater
value for their owners.”
The financial services industry remains prominent on the list. Nineteen of the
50 best brands are from this industry, including 12 banks, 4 insurance
companies and 3 securities companies. Among the 19 financial services
enterprises, 7 rank among the top 10. Emerging commercial banks, which must
aggressively innovate in the face of fierce competition, have shown stronger
growth momentum as a whole. The brand values of Minsheng Bank, Hua Xia
Bank and Industrial Bank increased 63%, 58% and 50% respectively over the
past year. In the securities industry, the brand value of CITIC Securities has
also registered a 50% increase.
The IT services industry is another fast growing sector in terms of brand value,
an industry-wide 68% increase from 2010. IT services brands such as Tencent,
Baidu, Alibaba and Ctrip, are more open and confident in their service offerings.
For instance, Tencent has become the largest internet service portal; Baidu is
filling the place of recently-departed Google; while Alibaba and Ctrip are
continuing to add innovations to China’s e-commerce sector.
New Oriental Education, the only brand on the list in the education service
sector, has jumped from the 40thspot last year to 32ndwith a 64% growth in its
brand value. As a weather vane for the whole sector, it illustrates a powerful
trend as the sector moves away from traditional approaches and takes risks to
In the apparel sector, brand values have shown significant changes over the
past year. Belle (43rd) enters the list for the first time. As a shining star,
Bosideng (47th) is succeeding in transitioning its product line from down coats
to fashion apparel, registering a 25% increase in its brand value. These
changes show that apparel is becoming an increasingly important symbol of
lifestyle in China, and that brands are due to play an important role in helping
the industry grow.
The food and beverage industry suffered a decline in brand value of 25%. Food
safety issues contributed to lower brand values for three food
enterprises ,Yurun, Mengniu and Shuanghui, which were on the 2010 list.
Shuanghui’s brand value dropped by 41%, dropping its rank from 38th to 49th.
As the public is increasingly concerned with food safety, but also longs for a
healthier life, food brands will continue to face both challenges and
opportunities in the future.
The Best China Brands report establishes a systematic approach to the growth
of Chinese brands. As remarked by Mr. Jez Frampton, CEO of Interbrand Global,
“Chinese brands are accumulating strength at home to actively prepare for
future development overseas. We are already experiencing Chinese Brands
around the world, and will likely see one of the 2011 Best China Brands among
the top 100 Best Global Brands in the near future”.