Press Release

March 29, 2019

BrandZ™ Study Shows Strength of Chinese Brands Overseas Is Growing Fastest in Japan, France and Spain

  • The BrandZ™ Top 50 Chinese Global Brand Builders study ranks the strength of Chinese brands overseas
  • 15% Y-o-Y uplift in ‘Brand Power’ score for China’s most powerful international brands
  • Yet consumer awareness falls amidst short-term focus on ‘product’ over ‘brand’

29 March 2019 Research published today from brand equity experts BrandZ™ – by WPP and Kantar – reveals the ‘Brand Power’ of leading Chinese brands is up 15% year-on-year, compared with 5% growth last year. The BrandZ™ Top 50 Chinese Global Brand Builders 2019 report also found that ‘Brand Power’ is rising fastest in Japan, France and Spain, representing emerging hubs of growth.

The findings of this unique study, which ranks Chinese brands on the strength of their brand overseas, celebrate the dynamism and rising competitiveness of Chinese businesses that are becoming global brands. With Japanese, French and Spanish consumers becoming increasingly positive towards Chinese brands, there are significant growth opportunities for those wanting to expand into these markets.

Yet the research also warns more should be done to ensure they thrive in an increasingly cutthroat global market which presents not only significant growth opportunities but also unprecedented levels of competition. Awareness of Chinese brands in international markets has declined over the past three years. Brands that can differentiate themselves from the competition and be more salient – staying front-of-mind for consumers – are more powerful.

David Roth, WPP, says: “Chinese brands must think beyond just the launch of their products to a more holistic brand building approach. Creating an emotional and differentiated understanding for their brands will be the real determinate of long-term success outside of China. As the spotlight continues to focus on China and its role in the global economy, this report and its insights shine a guiding light for the nation’s most ambitious, outward-looking brands – and how they can win overseas.”

The 2019 study covers 12 categories reflecting the breadth of business sectors in which Chinese brands are going, and growing, overseas. Consumer electronics and mobile gaming account for almost half the Brand Power of the full Top 50 (34% and 14% of total Brand Power respectively), with home appliances and e-commerce the next biggest contributors, contributing 11% and 10%. Online fashion has seen the largest rise in Brand Power, with Sheln and Zaful fuelling growth of 57%. Several categories saw their brand power grow.  Home appliances grew by 39%, e-commerce 30%, smart devices 20%, both banks/payment networks and consumer electronics by 17%, and mobile gaming by 11%. Cars fell 5%.

The Top 10 BrandZ Chinese Global Brand Builders

Rank 2019

Brand

Category

Brand power 2019

% Change vs 2018

1

Huawei

Consumer Electronics

1862

22%

2

Lenovo

Consumer Electronics

1698

0%

3

Alibaba

E-commerce

1624

48%

4

Xiaomi

Consumer Electronics

1068

41%

5

ByteDance

Content Apps

878

New

6

Hisense

Home Appliances

823

55%

7

Haier

Home Appliances

776

34%

8

Air China

Airlines

731

0%

9

OnePlus

Consumer Electronics

644

38%

10

Anker

Consumer Electronics

604

-1%

Doreen Wang, Global Head of BrandZ at Kantar, adds: “Our third annual BrandZ™ Top 50 Chinese Global Brand Builders ranking shows just how rapidly the global marketplace is evolving. It’s why it is now even more important than ever for Chinese brands to grow their Brand Power overseas. They are already perceived as innovative and cutting-edge by young consumers – but they must be mindful of being a business operating within an international market and adapt their communications strategy to resonate locally.”

The BrandZ Top 50 Chinese Brand Builders 2019 is based on a deep understanding of what motivates consumers, how to fulfil their expectations, and how to build powerful, valuable and extraordinary brands that consumers and investors love. The full report along with charts and videos can be found  here or via the app, available for download from http://www.brandz.com/mobile or from iTunes or Google Play. All BrandZ™ valuation results are also available for Bloomberg subscribers at their fingertips.

BrandZ™’s Top-five takeaways from the report for Chinese brands:

  • Have ‘brand-centric’ ambitions
  • Make insights-driven decisions in determining your route to market
  • Draw on the best local talent to identify the best local insights
  • Create compelling, high-quality content
  • Draw on the power of influential people

 

-Ends-

 

Notes to editors

Background and methodology
Produced by WPP and Kantar, the BrandZ™ Top 50 Chinese Global Brand Builders Report identifies and ranks Chinese brands based on the strength of their brand overseas. It also reveals challenges and opportunities, and provides vital insights and recommendations for Chinese brands going global. Brands across 12 product categories are ranked based on their Brand Power Scores in seven developed markets, including France, Germany, Spain, the UK, the US, Australia, and Japan. Brand Power is the BrandZ™ metric of brand equity, the consumer predisposition to choose a particular brand. Three ingredients comprise Brand Power: Meaningful (meeting functional and emotional needs in relevant ways); Different (being distinctive or trend setting); and Salient (coming easily to mind in a buying situation). Meaningful and Different scores of each brand were computed based on Google Survey answers. Each brand’s Salience was computed based on the survey answers and the brand’s search index in Google and YouTube.

About BrandZ™
Created by WPP and Kantar, BrandZ™ is the world’s largest and most definitive brand building platform, with a series of brand valuation ranking that allow business owners to understand the financial contribution their brand makes to their business. BrandZ™ calculates brand value by combining financial and market data with primary research data from interviews with more than 3.7m consumers in over 50 countries on their views on over 166,000 brands. BrandZ™ is trusted by many of the world’s most established financial institutions, with the BrandZ™ valuations fed directly into the Bloomberg terminals, used by over 300,000 of the world’s most influential decision makers. BrandZ™ is the only brand valuation ranking that takes into account the opinions of consumers – the people who buy from brands and whose daily spending decisions determine their rise and fall. This insight into consumers allows us not only say if a brand’s value has increased or decreased but also look into our data and pinpoint why.

About Kantar
Kantar is the world’s leading data, insights and consulting company. We understand more about how people think, feel, shop, share, vote and view than anyone else. Combining our expertise in human understanding with advanced technologies, Kantar’s 30,000 people help the world’s leading organisations succeed and grow.

About WPP
WPP is a creative transformation company. We build better futures for our clients through an integrated offer of communications, experience, commerce and technology. For more information, visit www.wpp.com.

 

For media enquiries please contact:

In China

Sharron Zhou
Brand Marketing and Communications Director, Kantar China
Sharron.zhou@kantar.com

International

Edd.Ross@hkstrategies.com
+44 207 973 4470


Share