Tencent and Alibaba hold the top two spots, SAIC and Chang An join the list
Shanghai, China (April 26, 2016)- Leading brand consultancy Interbrand named Tencent, Alibaba, and China Construction Bank as the three most valuable brands in its 2017 Best China Brands report, with financial services and internet brands dominating the ranking. Huawei was the fastest growing brand posting a 31% increase in brand value versus 2016. Chinese automotive brands are beginning to increase their value as well with Shanghai Automotive (SAIC) and Chang An joining Dongfeng and Great Well among the top 50 brands.
The launch event for this year’s Best China Brands was held at the Swatch Art Peace Hotel on the historic Shanghai Bund. More than 50 brands and academic organizations attended the ceremony which explored the biggest trends affecting brands in China and, specifically, how Chinese brands can accelerate growth in 2017.
For the third year in a row, Tencent and Alibaba claimed the top positions. Led by the continued expansion of its WeChat platform, Tencent’s brand value grew by 21 percent to RMB 215.3 billion, while Alibaba’s continued dominance in e-commerce helped its brand value rise 20 percent to RMB 170.8 billion. Rounding out the rest of the top 10 are China’s largest financial institutions and mobile service providers – China Construction Bank, China Mobile, Industrial and Commercial Bank of China, Ping An Insurance, Bank of China, China Life, Agricultural Bank of China, and China Merchants Bank.
Breaking into the top 50 for the first time were SAIC, traditional Chinese medicine brand Tong Ren Tang, and Chang An Automotive at #46, #47 and #48, respectively.
China’s five fastest growing brands were Huawei (+31%), Tencent (+21%), Alibaba (+20%), education services brand Xin Dong Fang (+15%), and sportswear brand Anta (+14%).
With a combined 29 positions, financial services and internet brands dominate this year’s report. Automotive and health care were the two fastest growing sectors, with their brand values increasing by 76% and 22%, respectively, and 8 category brands entering this year’s list. Reflecting the overall maturation of traditional communication and retail, both industries experienced a decline in total brand value, decreasing by 8% and 3%, respectively.
Stuart Green, Interbrand’s Asia-Pacific CEO, remarked on this year’s shifts, and the future of growth for Chinese brands: “Over the past decade, constant change has become the order of the day. Dramatic changes are taking place with accelerating the pace in all sectors. For brands, innovation and speed will be the keys to success. Enterprises require constant self-subversion to achieve innovation-driven success. They also need to establish a clear and accurate brand strategy, and create remarkable customer experiences to drive business growth.”
For the complete Top 50 ranking, and the report with comprehensive analysis of growth, sector and industry trends, please click here.
An introduction to Interbrand’s valuation methodology
Interbrand pioneered brand valuation in 1988, and introduced the first brand evaluation methodology to be certified by the ISO 10668 (which outlines requirements for monetary brand valuation). Interbrand’s analytical methodology has been recognized as a tool with special strategic management value.
Interbrand is deeply connected to the Chinese market, and this 10th annual Best Chinese Brands report serves as a platform for the growth of Chinese brands, rooted in its powerful brand valuation methodology. In keeping with global practices, the methodology behind the ranking of China’s 50 most valuable brands relies on financial information independently audited by third parties, as well as extensive consumer research and market data. The report is based on financial information as of the end of 2016 and calculates the brand value based on the brand’s future contribution to business profits. This stable and transparent approach provides a solid basis for the fairness of the final ranking and for the comparability of global and local calendar years.
The ranking is based on three key components that contribute to a brand’s cumulative value:
Best China Brands is so far the most authoritative brand ranking of its kind, capturing timely market and brand trends. It has become China’s compass for brand growth in all sectors, as well as an important lens through which brands can examine their own value.