Reforms pressure profits, inspire product innovation
The nine financial brands in the BrandZ™ Top 100 Most Valuable Chinese Brands comprise 30 percent of the ranking’s brand value, or $114.2 billion. The category overall increased 7 percent in brand value, with the three brands added this year— China Minsheng Bank, Industrial bank and China Everbright Bank.
Growth occurred despite several challenging factors, including slower growth in the BRIC markets and uncertainty in Europe. At home, the shift to a consumptionvdriven economy, and related financial reforms, affected the sector. Market-driven interest rates, for example, pressured profit made from loans and pushed institutions to look for new fee-based products.
Similarly, as loans to industrial clients for infrastructure development and other projects became less lucrative, financial institutions shifted their attention to consumer and small business customers. The increasing online availability of insurance and other financial products also added challenges. Some of the major internet portals added financial services to their offerings.