BrandZ Top 100 Most Valuable Chinese Brands 2018 Report EN

23% BRAND VALUE APPRECIATION
SURPASSES RECORD
Technology and innovation raise consumer expectations
FUXING PARK, SHANGHAI
TOP 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
100
31
100
32
TOP 10 MOST VALUABLE CHINESE BRANDS TOP 10 IN BRAND CONTRIBUTION TOP 10 IN OVERSEAS REVENUE
$: Brand Value Brand contribution is the proportion of value % of total revenue from outside China
%: Brand Value Change 2018 vs. 2017 driven by brand equity rather than other $ = Brand Value # = Top 100 Rank
99
in-market factors (such as promotions or

1 2 3 4 5 distribution). It tends to be a key driver of 1 2 3 4 5
33
business growth and is measured on a scale
of 1 to 5, with 5 the highest.
34
98
Technology Technology Home Appliances Technology Airlines

Technology Retail Telecom Providers Banks Technology $2.6 Billion $24.1 Billion $0.3 Billion $1.9 Billion $3.0 Billion
$132.2 Billion $88.6 Billion $49.2 Billion $37.2 Billion $25.0 Billion #39 #6 #100 #52 #35
+25% +53% -15% +18% +5%
35
Market-Driven Market-Driven State-Owned State-Owned Market-Driven 72% 55% 46% 42% 38%
97
Fortune Yili
6 7 8 9 10 6 7 8 9 10
37
96
PetroChina China Southern Airlines
37
Home Appliances Airlines Oil & Gas Home Appliances Airlines
Technology Alcohol Insurance Banks Banks $3.9 Billion $5.2 Billion $9.6 Billion $0.4 Billion $2.5 Billion
95
$24.1 Billion $23.2 Billion $22.4 Billion $20.1 Billion $16.2 Billion #26 #21 #16 #92 #42
+18% +43% 36% 9% 9%
35% 33% 32% 30% 26%
38
Market-Driven State-Owned Market-Driven State-Owned State-Owned
Total Value of All these brands scored 5
Top 100 Chinese Brands
TOP 10 RISERS 1 2 3 4 5 6 7 8 9 10
94
39
%: Brand Value
Change 2018 vs. 2017
+139% +92% +88% +78% +75% +64% +54% +53% +50% +50%
Top 100 Total Value Increased $: Brand Value
93
#: Top 100 Rank
40
Xueersi JD.com
Education Alcohol Real Estate Home Appliances Cars Technology Home Appliances Retail Retail Hotels
$1.1 Billion $2.2 Billion $4.5 Billion $3.1 Billion $0.5 Billion $2.2 Billion $0.4 Billion $88.6 Billion $14.6 Billion $0.7 Billion
#65 #46 #24 #32 #90 #47 #97 #2 #12 #82
41
Market-Driven State-Owned Market-Driven Market-Driven Market-Driven Market-Driven Market-Driven Market-Driven Market-Driven Market-Driven
NEWCOMER BRANDS #:$: Brand

Top 100 Rank
92
Value
CATEGORY VALUE CHANGES
42
#11 #36 #37 #38 #55 #58 #63 #66 #73 #86 #88
21 Categories: 15 , 5 , 1 NEW
$: Total Category Value
+68% Education
Yunda Express National Cellar 1573
Logistics Logistics Logistics Logistics Logistics Healthcare Travel Agencies Alcohol Real Estate Healthcare Home Appliances
$3.5 Bil. $14.7 Billion $2.8 Billion $2.6 Billion $2.6 Billion $1.8 Billion $1.5 Billion $1.2 Billion $1.0 Billion $0.9 Billion $0.6 Billion $0.5 Billion
91
2 Brands Market-Driven Market-Driven Market-Driven Market-Driven Market-Driven State-Owned Market-Driven State-Owned State-Owned Market-Driven Market-Driven
43
Download the Mobile app www.brandz.com/mobile
+50%
90
+57% +47% +46%
44
Travel
Agencies Retail
NEW +37%
89
$109.3 Bil.
$4.6 Bil.
5 Brands +28%
45
-12%
Logistics 3 Brands
Healthcare Real Estate
+21%
$24.5 Bil. Home Appliances
5 Brands $13.9 Bil. $8.7 Bil. $15.8 Bil. Telecom
5 Brands 9 Brands Providers
9 Brands Insurance
-1% $63.1Bil.
-6%
$46.4 Bil.
46
Jewelry 3 Brands
+19%
6 Brands
Retailer Personal Care
88
$1.4 Bil. $1.5 Bil.

Technology +13% +13% +12% 2 Brands
47
2 Brands
$194.8 Bil.
-5%
9 Brands Banks
Hotels $105.2 Bil. +5% +5% +3%
$1.4 Bil. 10 Brands Apparel
-7%
87
48
2 Brands $1.7 Bil.
Alcohol Cars Oil & Gas
Baby 2 Brands
$35.5 Bil. $3.3 Bil. $20.3 Bil.
Care 2 Brands
10 Brands 3 Brands $0.4 Bil.
Food & Dairy Airlines
1 Brand
49
$17.1 Bil. $11.6 Bil.
86
6 Brands 4 Brands
50
51
85
84
52
82 81 80 79 78 77 76 75 74 73 72 71 70 69 68 67 66 65 64 63 62 61 60 59 58 57 56 55 54 53
83
8 / Welcome
by David Roth, CEO, The Store WPP, EMEA & Asia
THE BRANDZ™ THOUGHT LEADERSHIP

CHINA TOP 100 194 / The Chinese Dream
by Scott Kronick, Ogilvy Public Relations
116 / The China Top 100 Ranking
200 / Innnovation
120 /
The Top Performers by Enbo Wang, Kantar Consulting
Newcomers
Top 20 Risers in Brand Value
204 / Penetration
by Natalie Babbage, Kantar Worldpanel
Top 10 in Overseas Revenue
INTRODUCTION MARKET INTELLIGENCE Top 20 in Brand Contribution 208 /

KPIs to Brands
by William Wei, Kantar Millward Brown
134 /
Category Value Changes
16 / Overview 50 / Economy, Demographics, and Connectivity Overview 212 / New Retail
by Han Yang, Kantar Consulting
20 / BrandZ™ Stock Portfolio 54 / Consumer Spending 138 /
Categories in Brief
Airlines 218 / Mobile Commerce
22 / Top Line Results 56 / Digital Alcohol by Gareth Ellen, Geometry Global
Apparel
24 / Five-Year Findings 60 / E-commerce
222 / Media Standards
Baby Care
34 / Cross Category Trends 62 / Media Spending Banks by Patrick Xu, GroupM
Cars
40 / Takeaways Education 226 / Going Global
Food & Dairy By Bryce Whitwam, Wunderman
Healthcare
Home Appliances
Hotels
Insurance
Jewelry Retail
Logistics
Oil & Gas
Personal Care
Real Estate
Retail
Technology
Telecom Providers RESOURCES
BRAND BUILDING Travel Agencies
176 /
234 / BrandZ™ Brand Valuation Methodology
OBSERVATIONS
C-Suite Q&As
Sherry Li, 236 / BrandZ™ Eligibility Criteria
General Manager of Branding & Public Relations,
BYD
238 / BrandZ™ Genome Mapping
70 / Observation 1. Innovation
Cindy Wang, 240 / BrandZ™ Brand Building Tools
74 / Observation 2. Premiumization Chief Marketing Officer,
242 / Reports and Apps powered by BrandZ™
Uxin Group
80 / Observation 3. Ownership
Tony Yang, 247 / BrandZ™ Online & Mobile
84 / Observation 4. Purpose Senior Vice President,
248 / WPP Company Contributors
Alibaba Digital Media & Entertainment Group
88 / Observation 5. Going Deep
252 / Kantar in China
96 / Observation 6. Going Global
254 / WPP in China
100 / Observation 7. 360 Communication
256 / WPP Company Brand Building Experts
104 / Observation 8. Campaign Integration
258 / BrandZ™ China Top 100 Team
260 / The BrandZ™ Brand Valuation Contacts

TOP 100 Most Valuable Chinese Brands 2018
Welcome
RECORD
Two recent developments compounded my strong
belief in the vitality of brands in today’s China and in the
potential for growth. Reviewing the preliminary valuations
for this year’s BrandZ™ China Top 100, I realized that
VALUE RISE
we’d surpass all prior year-on-year value increases. In
President Xi Jinping’s speech to the 19th Party Congress, David Roth
CEO, The Store WPP and Chairman, BAV Group
I recognized a vision for China in which brands can play a David.Roth@wpp.com
long-term constructive role. Twitter: davidrothlondon
Blog: www.davidroth.com
REVEALS
President Xi outlined his plans for President Xi also argued for conserving of this report and in Part 2: Market
what he termed, “the rejuvenation of China’s natural beauty and being Intelligence. For example:
the Chinese nation.” While President environmentally responsible in the
PROSPECTS
Xi rightly extolled China’s remarkable pursuit of economic growth. And he The BrandZ™ China Top 100 Most
economic growth over the past three advocated for the development of Valuable Chinese Brands rose 23
decades, he also detailed the need industries that innovate and leverage percent in value, the greatest ever
to help more Chinese people live a the internet, data and artificial year-on-year rise of the China Top
better life, and to elevate China’s global intelligence. 100;
stature, commensurate with its many
FOR FUTURE
contributions to civilization. To achieve these goals, President Xi The BrandZ™ China Top 100
wants to accelerate market reform, Portfolio has increased 179.1
President Xi calls his ambitious national which means promulgating regulations percent since July 2010, almost
mission statement the Chinese Dream. that promote fair competition. In three times the rate of the MSCI
He expects the dream to guide China’s enumerating these aspects of the China Index; and
activities over the next three decades, Chinese Dream, President Xi actually
GROWTH
coming to fruition at mid-century, articulated a blueprint for brand Market-driven brands produced
for the centennial anniversary of the success. But understanding and almost all the value growth in the
People’s Republic of China. Progress following the blueprint to build valuable BrandZ™ China Top 100 over the
likely will fluctuate with the economic brands requires additional knowledge past five years, while State Owned
and geopolitical forces of real world and insight. Enterprises (SOEs) only increased
competition and cooperation. slightly.
REPORT KNOWLEDGE
But the possibility for sustained AND INSIGHTS We believe that the conditions for
brand growth is clear. Brands exist to future brand value growth in China are
improve people’s lives in some way, This 2018 BrandZ™ China Top 100 extremely positive. Incomes are rising
REPORT DETAILS BRAND

and President Xi was explicit about report explores the key trends and awareness of brands is increasing
the ways in which he wants to see the impacting brand building in China today throughout the country in a market that
BUILDING IMPERATIVES
lives of Chinese improved. He asked for and the implications of President Xi’s is more receptive to fair competition.
greater progress in poverty alleviation, vision on brand building in the future. For us, the fundamental question is not
narrowing the income gap among By many measurements, valuable whether brand values will increase, but
regions, and improving employment, brands in China today are healthy. rather what brand initiatives will most
education, healthcare, and housing. You’ll find the details in the Introduction effectively accelerate that rise.
8 9
TOP 100 Most Valuable Chinese Brands 2018
Welcome
For some answers, I urge you to read in this report in Part 4: The China OUR VAST BRAND-BUILDING say we cover the world of brands, that’s Top 50 Most Valuable Latin American contact any of the WPP companies that
Part 3 of the report, where we present Top 100, which ends with in-depth RESOURCES exactly what we mean. We operate Brands; BrandZ™ Top 50 Most Valuable contributed expertise to this report.
eight Brand Building Observations. interviews with three chief marketing over 3,000 offices in 112 countries. UK Brands; BrandZ™ Top 50 Most Turn to the resource section at the end
We analyze key trends, including officers. They reflect on the Chinese Our companies have been engaged WPP’s proprietary BrandZ™ database Valuable French Brands; BrandZ™ Top of this report for summaries of each
innovation, premiumization, the lessons market overall, and their particular in China for over 50 years. Today, includes information from over 3.6 50 Most Valuable Indonesian Brands, company and the contact details of key
of market-driven ownership, and brands, and offer advice for brand 14,000 people, including associates, million consumers about their attitudes BrandZ™ Top 30 Most Valuable Spanish executives. Or feel free to contact me
the importance of purpose. We also building in today’s China. work across China in Beijing, Shanghai, about (and relationships with) 120,000 Brands; BrandZ™ Top 50 Most Valuable directly.
examine the need to penetrate deeper Guangzhou and many other cities brands across over 50 country markets. German Brands; BrandZ™ Top 30 Most
into China and the increase in Chinese In developing this report, we relied on and provinces. We provide expertise Valuable Italian Brands; and BrandZ™ Sincerely,
brands going global. Finally, we look the cumulative knowledge and insight in advertising; insight; branding and We have assembled an extensive Top 20 Most Valuable Saudi Arabian
at the media, and campaign strategies of our brand building experts in the identity, direct, digital, promotion library of BrandZ™ reports and I invite to Brands.
necessary to communicate effectively nearly 20 WPP operating companies in and relationship marketing; media you access them with our compliments
across China’s multiple audiences. China. And in Part 5 of the report, to put investment management, retail and at BrandZ.com. Here are just some We have the data, knowledge,
all of this information into perspective, shopper marketing; and public relations of the reports you will find there: experience, insight, determination, and David Roth
You’ll find extensive details about the we invited eight of these experts to and public affairs. the BrandZ™ Top 100 Most Valuable single-minded purpose to help you WPP
brands and the 21 categories included contribute Thought Leadership essays. Global Brands; BrandZ™ Top 100 Most create and build valuable brands. To david.roth@wpp.com
One of our key WPP strengths—and a Valuable US Brands; BrandZ™ Top 50 learn more about how to harness our Twitter: davidrothlondon
benefit for our clients—is that when we Most Valuable Indian Brands; BrandZ™ passion to work for your brand, please Blog: www.davidroth.com
10 11
P E O P L E EN J OY M O R E D I S P OSA B L E I N CO M E ,
B U T T H E Y S P EN D L ES S O F IT I N CA S H .
01 INTRODUCTION TOP 100 Most Valuable Chinese Brands 2018
Overview
23% VALUE
RISE SETS
NEW RECORD
19TH CONGRESS AND CHINESE DREAM
PRESENT OPPORTUNITIES FOR BRANDS
The BrandZ™ Top 100 Most Valuable Chinese Brands A 25 percent increase lifted the during the first half of 2017, picked up continued to expand their ecosystems, brands, China leads the world in the
2018 grew 23 percent in value, to $683.9 billion, a value of Tencent to $132.2 billion, at the end of the year, and GroupM disrupting categories while enabling evolution toward a cashless society.
making the internet portal China’s expects the pace to continue. consumers to navigate more of their
substantial rise over the 6 percent growth a year ago, most valuable brand by far, for the lives on their mobile devices without Innovation crosses many categories.
and the greatest one-year increase since publication fourth consecutive year. The year-end lift corresponded with switching platforms. The BAT brands Innovative Chinese brands have
of the first China Top 100 ranking in 2014. the convening of the 19th Party recently entered the insurance invested substantially in the
Education led category value Congress and the articulation of category, for example. development of electric cars, for
growth, rising 68 percent on an agenda to rejuvenate China example. And Chinese government
During that five-year period, market- top of a 46 percent rise a year and achieve the Chinese Dream In a development that Alibaba’s Jack incentives promote this innovative
driven brands produced almost all ago, reflecting the commitment with sustained economic growth, Ma calls New Retail, Tencent, JD.com, technology as a way to abate air
the value growth in the BrandZ™ Top of Chinese to a better life for more evenly distributed wealth, and along with Alibaba and other online pollution, a demonstration of China’s
100, rising 271 percent, while State themselves and their children. elevated global stature. brands, acquired or collaborated soft power leadership on an important
Owned Brands (SOEs) only increased with major brick and mortar retailers. global issue—climate change.
slightly in value. (Please see Five-Year With the addition of the logistics BRANDS EMBRACE INNOVATION These affiliations provide broader
Findings on page 24). category, the China Top 100 report insight into consumer behavior, online
now studies 21 categories. For some Innovations by Chinese brands and offline, and they enable the retail
Fifteen categories increased in value categories, growth accelerated toward contributed to reaching these goals. brands to respond more effectively
in the 2018 BrandZ™ China Top 100, the end of the year, on a sustained In the BrandZ™ Top 100 Most Valuable and efficiently by integrating data and
compared with 12 categories a year spike in consumer confidence and Global Brands, Chinese brands score logistics.
ago, and the rates of value growth stronger-than-expected GDP growth as high as European brands in the
were greater. Conversely, fewer of 6.9 percent, according to the World BrandZ™ Innovation metric, and only Although this kind of integration is
categories declined in value and the Bank. lag the US. In the BrandZ™ China Top happening in other parts of the world,
declines were less severe. In addition: 100, half the Innovation Top 10 come it is most advanced in China where
Sales of fast moving consumer goods from technology or retail, specifically 772 million people, more than twice
The BrandZ™ China Top 100 (FMCG) rose 3.6 percent for the third e-commerce. the population of the US, use the
Portfolio increased 179.1 percent quarter of 2017, signaling the start internet. Because of the openness
since July 2010, almost three times of a recovery, according to Kantar The technology and retail leaders— of Chinese consumers to try new
the rate of the MSCI China Index. Worldpanel. Media spending, sluggish Tencent, Alibaba, and Baidu (BAT)— things, and the innovations of Chinese
16 17
Overview
OVERSEAS EXPANSION next few years, however, the electric the US, however, when AT&T declined Asian countries have been the logical The gap in the number of online
vehicle maker BYD already supplies to be its telecom provider partner. starting points for many Chinese searches for Chinese brands,
But the cars category had not been electric buses to many countries and This development illustrates the brands developing overseas business. compared with brands from other
expected to lead the overseas growth is developing public transportation, influence of geopolitics on Chinese But, as the plans of Geely and Great major industrialized countries,
of Chinese brands. Until now, the including buses and monorails, in brand international expansion. US Wall indicate, Chinese brands in more declined 29 percent between 2013
brands with the highest proportion China and abroad. Tencent invested security concerns also slowed the categories are expanding overseas, and 2017, according to BrandZ™
of revenue gained from overseas in Tesla (and Snap) because, for American market expansion of DJI, a venturing further in the geographic research conducted with Google. (For
came from strategic State Owned some Chinese brands, acquisition or pioneer drone brand. DJI is one of the regions they enter and value full details, please visit The BrandZ™
Enterprises (SOEs)—oil and gas or investment has provided access to many innovative Chinese brands—in propositions they offer. Top 50 Chinese Global Brand Builders
airlines brands—and the technology overseas markets, and technology. robotics and artificial intelligence, for 2018 at www.brandz.com).
and appliance brands, many of example—that do not yet qualify for The overseas awareness of Chinese
which began as original equipment The technology brands Lenovo and BrandZ™ Top 100 eligibility because of brands is increasing, in part because Overseas acceptance of Chinese
manufacturers (OEMs), making Huawei are among BrandZ™ Top 100 size or not being publicly traded. brands benefit from the publicity brands is also increasing, although it
products for Western companies to leaders in the proportion of revenue surrounding Belt and Road, the varies by country and age, according
brand and sell. derived overseas. With its Mate 10 BEYOND BELT AND ROAD Chinese government’s initiative to to BrandZ™ research. While older
smartphone, Huawei successfully restore the global trading stature people are more likely to retain their
Car brands Geely and Great Wall entered a new positioning territory for Because of physical proximity and China enjoyed during the Silk Road impressions of Chinese products as
plan to introduce cars in Europe and a Chinese brand—premium. Huawei consumer expectations for quality period, which began over 2,000 years cheap and possibly unsafe, younger
North America, respectively, over the encountered problems expanding in at an affordable price, neighboring ago, during the Han Dynasty. people tend to view Chinese brands www.brandz.com
positively and they associate Chinese
brands with innovation.
18 19
BrandZ™ China Top 100 Stock Portfolio
CHINA TOP
100 OUTPACES VALUABLE BRANDS DELIVER SUPERIOR SHAREHOLDER RETURNS
STOCK
BrandZ™ China Portfolios vs. MSCI China July 2010 to January 2018
MARKET IN
GROWTH
VALUABLE BRANDS DELIVER July
2010 2011 2012 2013 2014 2015 2016 2017
SUPERIOR SHAREHOLDER RETURNS BrandZ™ China Brand Contribution Portfolio

January
2018
(Brands in the BrandZ™ China Top 100 ranked highest in Brand Contribution, a BrandZ™ measurement of brand strength)
BrandZ™ China Top 100 Portfolio (All BrandZ™ China Top 100 brands)
A rising market might lift all stocks—but not to the Brand Contribution is a BrandZ™ MSCI China (A weighted index of Chinese stocks)
measurement of brand strength, the
same level. Not even close. The BrandZ™ China Top 100 influence of brand alone on earnings, Source: Bloomberg and BrandZ™ / Kantar Millward Brown
Portfolio, which includes all the brands in the China Top with other factors stripped away.
100 ranking, has increased 179.1 percent since July 2010,
These results demonstrate that the
almost three times the rate of the MSCI China Index, investments brands make to build
which increased only 61.6 percent over the same period. value are measurably rewarded in the
stock market. Valuable brands deliver
Even more striking, the BrandZ™ China superior shareholder returns: $100
Top Brands by Brand Contribution invested in the MSCI China in 2010
Portfolio increased 290.8 percent, would be worth around $162 today.
almost five times the rate of the That $100 invested in the BrandZ™
MSCI. The Brand Contribution China Top 100 would be worth $279,
Portfolio includes the brands in the and it would be worth around $391
BrandZ™ China Top 100 with the invested in the Brand Contribution
highest scores in Brand Contribution. Portfolio.
20 21
Top Line Results
HEADLINES... EDUCATION GROWTH

LEADS CATEGORY CROSSES MOST
LOGISTICS
CATEGORY
CHINA TOP 100 RISES TOP 100 PORTFOLIO GROWTH CATEGORIES ADDED TO
23% IN BRAND VALUE OUTPERFORMS MSCI RANKING
CATEGORIES
The education category rose 68 Fifteen of the 21 categories examined
percent in value on top of a 46 percent in the BrandZ™ China Top 100 report
Five logistics brands entered the
rise a year ago. Factors driving increased in value, compared with only
The BrandZ™ China Top 100 Most The BrandZ™ China Top 100 Portfolio, which BrandZ™ China Top 100 this year. The
category’s strong performance include 12 of the 20 categories included in last
addition of the logistics category to the
Valuable Chinese Brands rose 23 percent includes all the brands in the China Top 100 the commitment of Chinese to a better year’s report. In general, category-by-
ranking reflects the dramatic impact
in value, the greatest one-year rise since ranking, has increased 179.1 percent since life for themselves and their children, category, the rate of growth was higher
of e-commerce in China and the rapid
and the country’s rigorous, test-centric and the rate of decline was lower.
publishing the first China Top 100 in 2014. July 2010, almost three times the rate of the urbanization of inland regions.
education system.
MSCI China Index, which increased only
61.6 percent over the same period.
BRANDS
XUEERSI RISES LENOVO, HUAWEI 11 NEWCOMERS TENCENT MENGNIU TOPS
139 PERCENT LEAD IN OVERSEAS JOIN THE REMAINS RANKING
REVENUE RANKING NO. 1 IN VALUE IN BRAND
CONTRIBUTION
The education brand Xueersi again
led the BrandZ™ China Top 100 in
Although more Chinese brands are Eleven brands from six categories A 25 percent increase lifted the
year-on-year value increase, with a 139
expanding abroad, Lenovo and Huawei entered the BrandZ™ China Top value of Tencent to $132.2 billion,
percent rise in value, which followed The dairy brand Mengniu led the
continued to lead in the percent of 100 this year for the first time. The making technology giant China’s
its 58 percent rise a year earlier. ranking in Brand Contribution,
revenue gained overseas, 72 percent high number of brands reflects most valuable brand, by far, for
the BrandZ™ metric that assesses
and 55 percent, respectively. the inclusion of another category, the fourth consecutive year, since
the extent to which brand alone,
logistics, and the ranking’s high it surpassed China Mobile in the
independent of financial or market
level of churn. 2015 ranking.
factors, drives purchasing volume and
enables a brand to command a price
premium.
22 23
Five-Year Findings
MARKET-
DRIVEN
23% TOP 100 VALUE RISE
EXCEEDS ALL PRIOR YEARS
BRANDS
The 2018 BrandZ™ Top 100 Most
Valuable Chinese Brands increased 23
percent, after a 6 percent increase a
year earlier. The percent increase for
the 2018 BrandZ™ China ranking was
the highest since the ranking expanded
PROPEL
from 50 to 100 brands in 2014.
BRAND VALUE CHANGE $683,887
SHARP
+23%
% Annual Growth
Brand Value US$ Million +6%
+13% $557,094
$525,568
+22% $464,234
VALUE RISE
$379,787
CHINA 100 OUTPERFORMS

GLOBAL 100, BUT EXPERIENCES 2014 2015 2016 2017 2018
MORE BRAND CHURN

Source: BrandZ™ / Kantar Millward Brown
24 25
Five-Year Findings
CHINA TOP 100 GROWTH

BEATS GLOBAL TOP 100
Since 2014, the BrandZ™ Top 100 Most
Valuable Chinese Brands has increased
80 percent in value, around three times
the rate of BrandZ™ Global Top 100,
which increased a healthy 27 percent
over the same period. The China Top
MARKET-DRIVEN
100 grew from a lower base, but the
Global Top 100 includes some of the
world’s fastest-growing brands, such
as the Global Top 5: Google, Apple,
Microsoft, Amazon, and Facebook. BRANDS PRODUCE
VALUE GROWTH
Market-driven brands produced most
BRAND VALUE CHANGE: of the value growth in the BrandZ™
CHINA 100 VS. GLOBAL 100 $684 Bil. China Top 100 over the past five years.
Market-driven brands increased 271
China
percent in value since 2014, while
Top 100
State Owned Enterprises (SOEs) only
+80% increased slightly in value. This shift is BRAND VALUE CHANGE:
MARKET-DRIVEN vs. SOEs
significant because SOEs dominated
the ranking in 2014, comprising 71 +271%
percent of its value. In contrast, SOE SOEs
comprise only 40 percent of the
2018 China Top 100. This power shift
Market-Driven
$408,566
$3.64 Tril.
from SOEs to market-driven brands
corresponds to the transition of China’s
2014 $110,138
Mil.
2018
+2%
Mil.
economic engine from production
Global to consumption. It illustrates that $269,648
Top 100
brand strength has become the main Mil. $275,321
$380 Bil. +27% determinant for building brand value. Mil.
$2.87 Tril.
2014 2015 2016 2017 2018 $379,787 Mil. $683,887 Mil.
Source: BrandZ™ / Kantar Millward Brown Source: BrandZ™ / Kantar Millward Brown
26 27
Five-Year Findings
TECH AND RETAIL

DRIVE VALUE SHIFT
Two categories dominated by market-
driven brands drove this shift in
value generation—technology and
retail (including e-commerce). While
these two categories added brands
Number of Brands in China Top 100
and greater brand value than other
2014 2018
categories, three categories dominated Total (SOEs) Total (SOEs)
by strategic SOEs lost value—banks,
Technology 7 (1 SOE) 9 (0 SOE)
telecom providers, and oil and gas.
Retail 1 (0 SOE) 5 (0 SOE)
VALUE GROWTH RATE
CAUSES BRAND CHURN
Banks 9 (8 SOE) 10 (9 SOE)
Telecom Providers 3 (3 SOE) 3 (3 SOE)

Significant brand churn resulted
BRAND VALUE CHANGE: Oil & Gas 2 (2 SOE) 2 (2 SOE)
from the value rise of the BrandZ™
CATEGORIES China Top 100, and the shift in value
growth from SOEs to market-driven
% Share of category value in BrandZ™ China Top 100
2014 brands. Over the past five years,
2018 28 brands dropped from the China
Top 100, compared with 17 from the BRAND VALUE CHANGE:
BRAND CHURN
30%
Global Top 100. The high dropout
28% rate for the China Top 100 indicates

Number of dropout brands over 5 years
16% 16% 15% 19% how competitive the Chinese

market has become.
9% 7%
0.4% 3%
Technology Retail Banks Telecom Providers Oil & Gas

28
17 Brands
Source: BrandZ™ / Kantar Millward Brown Brands
Global Top 100 China Top 100
28 29
Five-Year Findings Brand Implications
BRAND POWER SUSTAINED

GROWTH
ADDS STABILITY These five-year findings reveal a critical
One key element distinguished the dichotomy: the most valuable Chinese
dropout brands from the survivors— brands are increasing in value faster than
POSSIBLE
Brand Power. In 2014, the BrandZ™ China
the most valuable global brands; but more
Top 100 overall scored 159 in Brand
Power. Dropout brands averaged a Brand Chinese brands are unable to keep up with
Power score of 124, and surviving brands the rapid pace of growth and are dropping
scored an average of 168. In 2018, the out of the Top 100 rankings. In China today,
ACROSS
China Top 100 overall scored 162 in Brand
it is possible for a strong brand to win—or
Power. And surviving brands scored an
average of 175. This finding indicates the lose—to a stronger brand. The shifting of
importance of brand to sustain success in China’s economic propellant from production
China’s rapidly changing market. to consumption best explains why.
BRAND VALUE CHANGE:

BRAND POWER OWNERSHIP,
CATEGORIES
2014 2018
China Top 100 Brand Power
Average Brand Power = 100 Average Brand Power = 100
159 162
28 Dropout Brands (2014 only)
Average Brand Power = 100
124 Economic change disrupted the

hegemony of State Owned Enterprises
building strategies of market-
driven brands. The implication
perception among consumers that
these brands are different.
72 Surviving Brands (2014 and 2018) 72 Surviving Brands (2014 and 2018) (SOEs) and opened opportunity is that any brand, regardless of
for market-driven brands, better ownership, can build value when it Being seen as Different is a
Average Brand Power = 100 Average Brand Power = 100
positioned to serve the needs of acts like a market-driven brand. component of Brand Power,
168 175 people enjoying greater prosperity a BrandZ™ measurement of
and willing to pay for products to How does a market-driven brand equity, the consumer
Source: BrandZ™/ Kantar Millward Brown enhance their lives. How brands need brand act? Finding 4 shows that predisposition to choose one
Dropout Brands: Ranked in the BrandZ™ China Top 100 in 2014, but not in 2018
Surviving Brands: Ranked in the BrandZ™ China Top 100 in 2014 and 2018
to respond is more complicated and brands in technology and retail brand over another. The other
Brand Power: Brand Power is a BrandZ™ measurement of a brand’s competitive position in a category. It roughly requires brand-specific insights about (including e-commerce)—two components of Brand Power are
correlates with volume share. Brand Power is a BrandZ™ component of brand equity, which is the consumer
predisposition to choose one brand over another. An average Brand Power score is 100.
consumers and communications. Here categories dominated by market- Meaningful (meeting needs in
are some initial implications: driven brands—produced the relevant ways) and Salient (coming
greatest proportion of value easily to mind). As noted in
Finding 3 indicates that market- increase in the China Top 100. Finding 6, brands that scored high
driven brands increased almost The implication is not that rapid in Brand Power were much more
three-fold in value over the brand value rise is limited to two likely to remain in the ranking,
past five years, while SOEs only categories. Rather, it suggests that while brands lower in Brand Power
increased slightly. It would be a lessons of technology and retail dropped out. The implication is
mistake to interpret this finding brands should be applied across that sustained growth is possible
as an endorsement of a particular categories. The technology and for any brand, regardless of
ownership model, however. Rather, retail brands generally excel in ownership or category.
the finding affirms the brand- innovation, which increases the
30 31
YO U N G P E O P L E ST U DY A N D WO R K H A R D,
P R EPA R I N G F O R A FU T U R E T H E Y WI L L D E T ER M I N E .
Cross Category Trends
PREMIUMIZATION
QUEST FOR THE BEST
PURSUIT OF INSPIRES SHOPPERS
THE CHINESE
Premiumization is not a new trend, but it spread
more widely across categories and more deeply
into China, beyond the affluent coastal cities.
Increasingly sophisticated and affluent Chinese
consumers discriminated among product offerings
to select the quality and features they desired.
DREAM ADDS
Premiumization, a stage in lifecycles of most
markets, happened with the speed characteristic
of China, and the trend touched many categories.
In alcohol, Chinese consumed less beer but paid
more for the beer they drank. Similarly, the sales of
OPPORTUNITIES
some food and dairy products increased in value
even as volume slowed. Hotel brands, which had
expanded rapidly to capture the budget segment
of the Chinese market, added more personalized
services to enhance guest experience. The
appliance category surged in value as brands
FOR BRANDS
introduced large and small appliances loaded with
up-scale features.
LIFESTYLE PENETRATION
WANTS, NOT NEEDS, ADDING MORE
DRIVE SPENDING CUSTOMERS IS KEY
The Chinese government’s promotion of
responsible and sustainable growth, rather than TO GROWING SALES
growth at all costs, influenced the purchase choices
As brand choice increased and loyalty weakened,
made by consumers. People who have attained a
penetration was the surest path to sales growth.
reasonable level of wealth shopped less for fast
The greatest opportunities were in lower tier cities
moving consumer goods (FMCG) and spent more
and other locations in the interior, home to over a
on discretionary items. Airlines expanded their
billion people with increased purchasing power.
overseas routes, and travel agencies, like Ctrip,
These consumers were not strictly price-driven.
acquired brands to provide expanded services
Like consumers in the coastal megacities, they
for Chinese abroad. Brands in categories as
were willing to pay a premium when merited.
diverse as apparel and food and dairy responded
to a growing concern about personal health and
wellbeing. Healthcare was among the fastest rising
categories in value. One of the most popular items
purchased was intangible—knowledge. For the
second consecutive year, education led in the rate
of category value growth. And education brand
Xueersi increased most in value, 139 percent.
34 35
PURPOSE
BRANDS ADVANCE
GOING GLOBAL
CHINA’S INTERESTS
MORE CATEGORIES AND THEIR OWN
TRAVEL OVERSEAS Dual mission statements guided many Chinese
brands—their own and China’s. Historically,
Measured by the percent of revenue derived from
State Owned Enterprises (SOEs), in strategically
overseas sales, the technology and appliance
important categories, acted as the agents for
categories still lead—a legacy from the days of serving
realizing the national agenda. Now, brands,
as original equipment manufacturers (OEMs). The
regardless of ownership and across categories,
Chinese state-owned airlines also rank high. However,
linked their own Brand Purpose with the
brands in other categories are expanding abroad,
Chinese Dream, the government effort to sustain
sometimes to nearby Asian countries first, a traditional
responsible economic growth, build a more
route recently taken by the apparel brand Heilan
equitable society, and restore China to its historic
Home when it opened its first overseas store, in Kuala
global stature. Banks financed poverty reduction
Lampur. In contrast, the Chinese car brands Geely and
projects at home and added overseas branches
Great Wall plan to introduce cars in Europe and North
to support Belt and Road activities. Car brands
America, respectively, in a few years.
developed new energy alternatives to help abate
air pollution. Besides developing electric cars,
BYD introduced its first monorail, in Yinchuan, in
central China, to reduce urban congestion as well
as pollution. Apparel brands aligned with the effort
to develop Chinese champion athletes. Food and
dairy brands improved safety and quality.
TWO CHILDREN
POLICY SHIFT DISRUPTION
INCREASES ECOSYSTEMS ENGULF

PURCHASING MORE CATEGORIES
POTENTIAL
More than elsewhere, Internet brands—especially
Baidu, Alibaba, and Tencent (BAT)—have enabled
consumers to handle the transactions of daily life—
shopping, purchasing, banking, communicating,
In rescinding the one-child policy
cab hailing—on a single integrated platform. Now,
and replacing it with permission for
internet giants are increasingly crossing categories
married couples to have two children,
and disrupting markets as they enlarge and protect
China intended to rebalance the
their ecosystems. Baidu collaborated with China
population demographics, from aging
Life to launch an internet investment fund. Alibaba
to youth, and stimulate consumption.
and Tencent have also entered the insurance
China’s birthrate has increased, and
business. And they are active in the travel category.
many categories have experienced—
At the same time, the growth of internet brands,
or anticipated—a positive impact
particularly the e-commerce leaders, drove the
on sales, including baby care and
expansion of the logistics category, included in the
education.
BrandZ™ China Top 100 for the first time this year.
36 37
INSIGHT
BRANDS PROBE DEEPER
INTO SHOPPER BEHAVIOR
Alibaba CEO Jack Ma gave it a name, New Retail—the integration of
data, logistics, online, and offline. The phenomenon, which has been
developing for years, accelerated dramatically when Alibaba, JD.com,
and other e-commerce giants acquired or collaborated with brick and
mortar retailers. These hook-ups potentially provide a retail brand
with deep insight into how the same customer behaves online and
offline, and they enable the brand to effectively respond.
GEOPOLITICS
INNOVATION
GLOBAL TENSIONS
ONCE THE COPIER, IMPACT BRANDS
NOW THE COPIED
As China asserts itself internationally with Belt
and Road and other initiatives, geopolitics impacts
brands. Huawei, now the world’s third largest
Older people are more likely to still think of smart phone manufacturer, after Samsung and
China as a copycat nation. But younger people Apple, continued to build its brand in Europe and
see China as the nation to copy. And it is not just other regions, but it experienced a setback in
that Chinese brands produce some of the most the US, when an arrangement to sell its premium
popular titles for gamers. Having acquired a lot Mate 10 smartphone through AT&T collapsed. US
of technology, China is investing in the research government security concerns have also slowed the
and development to compete for leadership American market expansion of two other Chinese
in diverse technologies, including: artificial technology brands, ZTE and DJI. Separately, Korea’s
intelligence, autonomous vehicles, and drones. deployment of the defensive THAAD missile
system provoked a negative reaction in China that
resulted in slower sales for popular Korean cosmetic
products, a phenomenon that affected the value
increase of the personal care category.
38 39
Takeaways
ACTIONS GAIN INSIGHT

FOR
China’s economy continues to expand rapidly
following the big bang of opening up. But
35 years later, new forces are shaping the
BUILDING
expansion. For the government, growing the
economy is not just about speed, but also
responsibility. For consumers, purchasing is
not just about acquiring more stuff, but also
about building a better life. And for brands,
GREATER
added complication requires greater insight.
BRAND
BE MARKET-DRIVEN
VALUE
Over the past five years, market driven
brands—rather than State Owned Enterprises
(SOEs)—produced most of the value
growth in the BrandZ™ China Top 100. That
development is not reason to convert from
one ownership model to another. However,
it is encouragement for all brands to act as if
they are market-driven by gaining consumer
insight, developing relevant and differentiated
products, and getting the word out effectively.
40 41
Takeaways
FULFILL EARN A
THE DREAM
Key aspects of the Chinese
PREMIUM
Price is important, but Chinese
Dream correspond closely with consumers today are shifting to a new
the fundamental brand purpose of phase. Having already acquired a lot of
making people’s lives better. In China, stuff, many consumers are willing to pay
that means helping create a more more for extra quality or uniqueness—
equitable society, and narrowing the whether purchasing a car, a new
gap between rising expectations and refrigerator, or a container of yogurt.
access to the affordable products and
services that represent a better life.
INNOVATE
Innovation had been the exception
GO DEEPER
Only about 10 percent of China’s population lives
among Chinese brands. Not anymore. on the coast, which means that a billion people
Innovative Chinese brands are found live in lower tier inland locations. In many cases,
across categories, but especially in the local economies are growing faster than the
technology and retail (e-commerce). national GDP. But it is not just about the
Innovation leads to Difference, a numbers. As purchasing power rises
component of Brand Power, a BrandZ™ for these consumers, they are becoming
measurement of brand equity, the more interested in brand and less
predisposition that influences a consumer price sensitive.
to choose one brand over another.
Brands viewed as Different are more
likely to command a price premium.
42 43
Takeaways
UPDATE
COMMUNICATIONS
GO
To effectively impact today’s consumer, especially young
people, it is important to communicate about brand know-how
GLOBAL
and uniqueness, and to express market leadership with a new
vocabulary that recognizes the importance of social responsibility.
Most Chinese brands still are

not well known outside of China.
Awareness is increasing, however.
More people are searching for
Chinese brands online, according to
research by BrandZ™ and Google.
Additionally, consumer perceptions
of Chinese brands are improving, at
least among younger people.
MIX
MEDIA
Chinese consumers, across generations,
GET
spend a lot of time on their mobile
devices. But they watch other screens,
too, including traditional TV and out-of-
CREATIVE
home media. As brand choice increases,
loyalty weakens, and it becomes important
to reach consumers at every important
moment. Being present on multiple screens
pays off. Brand value increased twice as Even when the media mix is on target and
fast for BrandZ™ China Top 100 brands that the message is well crafted, making a lasting
continuously invested in multiple screens. impression requires impactful and memorable
advertising. The trifecta of the right mix,
message, and memorable communication
accelerates brand value growth.
44 45
LONGJI RICE TERRACES, GUILIN
02 MARKET INTELLIGENCE TOP 100 Most Valuable Chinese Brands 2018
Economy, Demographics, and Connectivity CONNECTIVITY

Total Internet Users 1
772 million
GEOGRAPHY
$479.4 billion
Land Area 2 Rural Internet Users 1
9.6 million sq. km. 209 million

3.7 million sq. mi.
(World’s fifth largest nation, slightly smaller Total Mobile Internet Users1
753 million
than the US and larger than Brazil)
Internet Penetration 1
55.8%
Internet Users on Mobile 1
97.5%
$293.1 billion
POPULATION
Total
1.38 billion
Urban Population 2 Foreign Direct
(as percent of total population) Investment
% 56.8
%
53.2% 54.4 55.6
%
50.6% 51.2%
37.1%
$170.6 billion
27.3%
20.1%
ECONOMY
Gross National Saving (% of GDP)
GDP GDP Per Capita
1981 1991 2001 2011 2012 2013 2014 2015 2016 $11.2 trillion US $8,126 50.4%
51.3%
(No. 2 after the US $18.6 trillion) (Somewhat less than Brazil) 49.7% 50.0% 49.5% 48.9%
50.7% 50.6%
50.1
%
49.8 %
Population by Age 2
GDP Rate of Growth 47.5%
65 years and over 10.81% 46.5%
14.2%
$78.2 billion
55-64 years 10.75%
25-54 years 48.51%
15-24 years 12.78%
$32.5 billion
$44.5 billion
0-14 years 17.15% 12.7% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
11.4% 10.6%
Median Age 2 9.5% Gross National Saving Comparison (% of GDP) Exports 2
9.7% 9.4%
37.4 27.9 32.0 38.1 39.6 40.5 (2015)
$1.99 trillion
7.7%
7.3%
6.9 6.7%
%
48.9% 28.9% 15.8% 16.9% 28.6% 14.8% (2016 est., No. 1 worldwide,
7.8
%
above the EU and US)
China India Brazil US Russia UK

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 China India Brazil US Russia UK China India Brazil US Russia UK
50 Figures are from the World Bank for 2016 unless noted. 1 China Internet Network Information Center (CNNIC) as of December 2017. 2 CIA World Fact Book, 2017 estimates unless noted. 51
C H I N A’ S P OT EN TIA L I S S H E LT E R E D. . .
. . . I N T H E I M AG I N AT I O N O F ITS C H I L D R EN .
Consumer Spending
RISING FMCG
PURCHASE FREQUENCY DECLINES
FMCG Purchase frequency has declined over the past few years, especially in food and beverage.
SPENDING
Category purchase frequency, all channels (per household, per year)
15.0
2013
2016
12.4
REVERSES
10.3
9.5 8.6
7.3 6.8 6.6

6.3 6.3 5.8
6.2
LONG-TERM
5.6
5.5 5.5 5.5 5.4
4.9 4.5 4.0
3.9 3.5 3.3
2.4 2.1
2.1
TREND
Yogurt Infant Diapers Facial Fabric Instant Juice Carbonated Personal Chocolate Chewing Tootbrushes Makeup
Formula Tissue Detergent Noodles Soft Drinks Wash Gum
Biscuits Milk Skin Toothpaste Packaged Toilet Ready-To- Beer Candy Shampoo Kitchen Hair Fabric
Care Water Tissue Drink Tea Cleanser Conditioner Softener
Source: Kantar Worldpanel
PENETRATION LEADS TO The positive end to 2017 reversed

years of declining FMCG sales
increase during the first half of 2017.
Sales of popular Korean personal
FMCG sales in western and southern
China grew 6 percent and 4.2 percent,
opportunities exist in categories with
relatively low penetration, such as
GREATER MARKET SHARE

growth. The decline encompassed a products slackened after China respectively, in the third quarter of facial makeup, where penetration
more complex story in which FMCG objected to South Korea’s deployment 2017, exceeding the overall national is 40-to-50 percent, compared with
sectors diverged in a pattern Kantar of a defensive missile system. improvement. Consumer purchasing penetration of over 80 percent
Worldpanel calls “China’s Two-Speed power is increasing rapidly in these in Japan and Korea. And across
Growth.” Food and beverage sales In addition, consumer shopping regions, which are experiencing categories, Kantar Worldpanel
Sales of fast moving consumer goods (FMCG) rose volume slowed, but personal care and behavior changes continued to robust economic growth as industries found that the market-leading
3.6 percent for the third quarter of 2017, signaling the home care sales value increased, as complicate FMCG sales. Purchase relocate manufacturing facilities from brands enjoyed significantly higher
consumers purchased higher-priced frequency declined for several China’s coast to its the lower-cost penetration than their competition.
start of a recovery, according to Kantar Worldpanel. premium products. But exceptions to reasons, including the rise in interior.
In addition, FMCG e-commerce sales grew over 24 the pattern emerged. e-commerce for groceries and
percent during the same period, which increased the other consumer goods, and the The two-speed nature of China’s
Among the slower-growing food and corresponding cutback in trips to FMCG market, and the decline in
proportion of FMCG purchased through e-commerce beverages, some products sold well, hypermarkets and supermarkets. And shopping frequency, make gaining
to a still-small—but rapidly growing—7.4 percent. specifically yogurt and bottled water, more people ate meals out-of-home or market share even more challenging
which command premium prices relied on home delivery. than usual. Penetration is key,
because they meet the Chinese according to Kantar Worldpanel, and
consumer’s increasing concern about These trends were consistent across penetration varies widely by category.
health and wellness. Conversely, China, with some regional variations, In toothpaste, where penetration
geopolitics slowed the rapidly-growing according to Kantar Worldpanel, which is close to 100 percent marketers
personal care sector to a respectable, researches consumer spending in over need to interest consumers in more
but disappointing, 8.3 percent value 100 categories in Tier 1-to-Tier 5 cities. premium product versions. In contrast,
54 55
Digital
CONNECTED
CHINESE
ARE MOBILE-
CENTRIC
BUT FINDING THEM CAN CHINESE CONSUMERS OWN MORE DEVICES… … AND THEY SPEND MORE TIME ON THEIR
BE CHALLENGING
Chinese own an average of 3.2 devices, compared with an DEVICES...
average ownership of 2.7 globally and 2.5 in emerging Asia. Chinese spend 5.4 hours daily on their devices, more than
And they are more likely to use devices simultaneously. consumers worldwide and in emerging Asian markets.
Mobile dominates, but Chinese use a variety of devices.
Emerging
Chinese consumers are connected. China had 772 million Global Asia China Emerging
internet users at the end of December 2017, according to # of devices owned 2.7 2.5 3.2 Global Asia China
Kantar TNS also found that messaging
the China Internet Network Information Center. And over 96 Daily
leads the list of weekly online
percent of them access the internet with a mobile phone. device 5.0 4.4 5.4
activities, followed by reading PC 72% 63% 91% hours
articles, engaging in social media,
and watching free TV or movies.
Although Chinese are mobile centric, Emailing and watching video clips also 54% 60% 49%
however, they engage with many consume a lot of time.
Smartphone 89% 93% 96% Share of
devices. Chinese own an average time on
of 3.2 devices, compared with an The social media habits of Chinese devices 37% 31% 39%
average ownership of 2.7 globally and consumers vary somewhat from Tablet 37% 32% 52%
2.5 in emerging Asia. the habits of consumers elsewhere. 9% 9% 12%
Consumers generally spend around Mobile
Chinese spend more time on their the same amount of time each day Wearable 17% 22% 37% PC
devices—5.4 hours daily—and a on social media—1.3 to 1.5 hours, Tablet
much higher proportion of Chinese— but Chinese use more platforms, an “I normally use Source: Kantar TNS
over half—use multiple devices average of 15, with a strong preference multiple devices
at the same time
35% 39% 53%
simultaneously. These results were for WeChat compared with Facebook,
developed by Kantar TNS as part of its which leads the social media options when I’m online”
Connected Life research. elsewhere. Source: Kantar TNS
56 57
Digital
…MESSAGING LEADS THE LIST OF ONLINE ACTIVITIES… …AND CHINESE USE MORE SOCIAL MEDIA PLATFORMS
Messaging leads the list of weekly online activities, followed by reading Chinese use more social media platforms, an average of 15, with a strong preference for
articles, engaging in social media, and watching free TV or movies. WeChat compared with Facebook, which leads the social media options elsewhere.
Weekly active usage
Emerging
Messaging 94% Global Asia China
Average time spent

Online Articles 88% 1.5 1.3 1.3
on social (hours/day)
Social 82%
Average number of social
8.4 10.7 15
TV/Movies (free) 82% platforms used weekly
Emails 80%
Preferred social
Video Clips (free) 80% media platform
Facebook Facebook WeChat
Video Clips (on social) 77% Source: Kantar TNS
Internet Banking 69%

Post Photos 65%
TV/Movies (via subscription) 53%
TV/Movies (bought one-time) 52%
Source: Kantar TNS
58 59
E-commerce
CHANGING
YOUNG FAMILIES DRIVE PRODUCT CHOICE
The online FMCG spending of young families with children, and their need for convenience,
influences the high levels of household essentials replenished online. The trend may be
RETAIL SCENE
more pronounced in China because of the end of the one-child policy. Almost a third of
households shopping for FMCG products online purchase baby diapers.
% Online value share (Top 10 categories)
Adult
DRIVES
Tampons Diapers Infant
Butter
22.1% 20.2%
Milk
Baby Diapers 25.3% 17.5%
32.5% Fragrance
Mouthwash
Make Up Skin Care 14.0%
21.0% 19.0%
22.4%
E-COMMERCE
Pet Food
30.8%
Overall FMCG
6.2%
Source: Kantar Worldpanel (52 weeks ending March 2017)
FMCG SPENDING GROWS RAPIDLY MOST ONLINE GROCERY

SHOPPERS ORDER WITH
MOBILE PHONES
Of grocery shoppers that sometimes
Two distinct competitive dynamics influenced the rapid The rise of FMCG e-commerce is selection could persuade them to try accounted for 6.2 percent at the end
especially relevant in China because grocery e-commerce. Despite these of March 2017). China is in a leadership order online, almost 70 percent order
growth of Chinese e-commerce. First, leading e-commerce of scale and the openness of the reservations, FMCG e-commerce is group that includes South Korea, where with a mobile phone at least some of
brands invested in other online players to expand reach and population to e-commerce. China’s growing and gaining market share the e-commerce portion of FMCG sales the time, while less than half use a PC.
keep customers within their ecosystems. Second, leading e-commerce market reached RMB and penetration in China and in other is greatest, along with the UK, Japan, E-commerce grocery purchasing
5,156 billion ($794 billion) in 2016, countries and regions. France, and the US.
e-commerce brands invested in offline businesses to create according to the National Bureau of Buy Offline
closer online-offline integration. Statistics of China. GROWTH PENETRATION 27%
Around three quarters of Chinese The value of FMCG sold through the Major cities dominate penetration in
Tencent and JD.com illustrated the New Retail is evolving globally, and grocery shoppers have purchased e-commerce channel in Asia increased China, as they do in much of the world.
first dynamic with their substantial includes the association of Walmart and online, according to Kantar TNS. 44 percent for the 52 weeks ending In Beijing and Shanghai, e-commerce
investment in online retailer Vipshop, Jet.com and Amazon and Whole Foods. They use a variety of devices for in March 2017, outpacing the growth comprises almost 10 percent of the
late in 2017. The online and offline And it drives the rapid e-commerce purchasing, but favor mobile phones rate of all other regions. Multiple FMCG market. However, lower tier
integration, a phenomenon Alibaba growth of the fast moving consumer overwhelmingly. Almost 70 percent of factors drove this growth, including the cities are driving penetratio and Buy Online
CEO Jack Ma named New Retail, was goods (FMCG). E-commerce still online grocery purchasers order with a online spending of young families with growth. The value of online FMCG 73%
demonstrated by Alibaba’s association represents a relatively small percent of mobile phone at least some of the time, children. purchasing in Tier 3 and 4 cities grew
with the Bailian Group and purchase FMCG spending worldwide, around 5 while less than half use a PC some of 59 percent between 2014 and 2016,
of Hema Xiansheng supermarket, percent, but it contributed 36 percent the time. MARKET SHARE around twice the growth rate of Beijing
and JD.com’s investment in Yonghui of FMCG growth, and is being more and Shanghai. Penetration is high
Superstores and collaboration with rapidly adopted in Asia, according to The grocery shoppers who have E-commerce accounted for 7.4 percent in Asia generally, reaching over 69 Mobile
Walmart. Kantar Worldpanel, in its report, The not purchased online say that better of FMCG spending in China, at the percent in Korea. In contrast, online PC 69% Tablet Voice
Future of E-commerce in FMCG. quality products and greater online end of the third quarter of 2017 (it FMCG penetration in Europe averages
around 30 percent.
48% 24% 5%
Source: Kantar TNS
60 61
Media Spending
LATE SURGE
BOOSTS
SPENDING,
STRONGER
GROWTH
EXPECTED
LIBERALIZATION SHOULD Media spending, sluggish during GroupM revised its forecasts upward based on liberalization policies tier cities is among the factors driving
from earlier estimates because of the announced during the 19th Party radio advertising. The strength of
the first half of 2017, accelerated
DRIVE AD SPENDING IN
strength of China’s economy, with GDP Congress. At the same time, slower out-of-home advertising reflects the
at the end of the year, and GroupM expanding around 6.9 percent, faster sales growth in fast moving consumer urbanization of rural China, which
expects the pace to continue into than expected. Government policies goods (FMCG) and cars, except at results in more public transportation
CERTAIN SECTORS 2018, when it forecasts spending

helped drive ad sales in certain
sectors, especially real estate in lower
the luxury level, may moderate media
spending.
and outdoor advertising venues.
to increase 5.2 percent, following tier cities. This activity supported out- The long-term advertising spending
a 4.3 percent increase in 2017. The of-door media and helped slow the Internet spending will continue to decline will continue, but at a more
rate of decline of advertising sales in lead media spending growth, but gradual rate, for other traditional
incremental rise—about $4 billion— other traditional media, which GroupM the annual rate of internet spending media—TV, newspapers, and
reflects the continued rebalancing of expects to drop 6.3 percent in 2017, growth is expected soften from magazine. GroupM’s predictions for
China’s economy from production to rather than 8.9 percent as previously 14.3 percent to 13.5 percent. Media media spending change in China align
predicted. spending should also increase for with its forecasts for media changes
consumption, and the growing level of radio and out-of-home, with radio up globally, which are positive overall,
retail sales as a percent of GDP. GroupM also foresees positive slightly to 1.3 percent annual growth, based on high levels of business and
prospects for media spending in some but the strong growth rate for out- consumer confidence. GroupM is
service sectors, including banking, of-home should slow to 9.2 percent. WPP’s media management investment
education, culture, and medicine, Greater penetration of cars in lower- company.
62 63
Media Spending
MEDIA SPENDING GROWTH RATE RISES... …INTERNET CONTINUES TO LEAD GROWTH… …AND INTERNET RECEIVES
Total media spending by advertisers continued to grow steadily, and the annual growth rate improved The amount of advertising spending continued to increase for radio, out-of-home, MAJORITY OF MEDIA
for the first time in several years. The growth rate is expected to increase slightly again in 2018, based and internet, but ad spending in most traditional media—TV, newspapers, and SPENDING
on the strength of the Chinese economy. magazines—declined, although at a slower rate than had been expected.
Having grown rapidly, Internet now
Total media spending in $US Year-on-Year Media Spending Change
$85.7 receives almost two-thirds of all media
$81.5
$78.1 billion spending. In comparison, the next
billion
$73.1 billion most popular advertising medium, TV,
$67.8 billion attracts about a quarter of all media
$63.0 billion spending.
billion TV Radio Newspapers Magazines Out-Of-Home Internet
$56.8 2018 Share of Media
$50.8 billion 14.3% 13.5%
billion
$44.2 9.7% 9.2%
$38.5 billion
$35.1 billion 25.8%
1.2% 1.3%
billion
2.1%
61.2% 0.8%
+9.8% +14.7% +14.9% +11.7% +11.0% +7.6% +7.8% +6.9% +4.3% +5.2% 9.7% 0.4%
-8.8% -9.2%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (f) 2018 (f)
Source: GroupM This Year Next Year December 2017 TV Magazines

2017 forecast Radio Out-of-home
-28.1% -29.4%
2018 forecast Newspapers Internet
-32.6% -34.1%
Source: GroupM This Year Next Year December 2017 Source: GroupM This Year Next Year December 2017
64 65
PUTAOZHEN, GUILIN
BRAND
BUILDING
OBSERVATIONS
03 BRAND BUILDING OBSERVATIONS TOP 100 Most Valuable Chinese Brands 2018
Observation 1: INNOVATION
MORE
TREND BENEFITS BRANDS,
CONSUMERS, AND COUNTRY
CHINESE
Innovation was not a term In the BrandZ™ China Top 100, 82 is one of the components of Brand
percent of brands are viewed as highly Power, the BrandZ™ metric of brand
associated with Chinese brands or moderately innovative, compared equity. Difference helps brands
until recently. Then Chinese with 72 percent three years ago. And command a premium price.
BRANDS
technology brands began to Innovation extends beyond internet
brands and the tech category. In the BrandZ™ China Top 100, the
transform China into an online brands that scored low in the BrandZ™
nation where people integrate By becoming more innovative, Innovation Index, 95 or below, scored
broad aspects of their lives on Chinese brands can help improve the only 81 in Difference (100 is average).
lives of more Chinese consumers, In contrast, the brands that scored
their mobile devices, including
BECOME
which is a goal of the 19th Party high in Innovation, 110 or above,
how they communicate, access Congress. Critically, consumers see scored an average a 148 in Difference,
information, shop and pay for innovative brands as Different. Along which is an extremely high score that
with Meaningful (meeting consumer has risen modestly over the past five
merchandise, rent a bike or hire needs in a relevant way) and Salient years.
a taxi. (coming easily to mind), Different
INNOVATIVE,
The ability to innovate also makes
Chinese brands more competitive
MORE CHINESE BRANDS ARE SEEN AS INNOVATIVE… globally, positioning them to help
China attain greater leadership status
In the BrandZ™ China Top 100, 82 percent of brands are viewed as highly or
outside of China, which is another
moderately innovative, compared with 72 percent three years ago.
Party Congress goal. The Chinese
IN MANY
Innovation / BrandZ™ China Top 100 brands ranked in the BrandZ™ Global
Top 100 already score a strong 110
2015 28% 46% 26% on the Innovation Index, the same as
brands from Continental Europe and
second only to the US brands.
2018 18% 55% 27%
CATEGORIES
Low (95 or below) Medium (96-109) High (110 or above)
Innovation: Consumers see Innovative brands as creative, leading the way in their category and/
or shaking things up. An average score is 100; 110 and above is strong; 95 or below is weak.
BRAND IMPLICATIONS
The days of “copycat” China are over. First, Chinese consumers now expect more from the
brands they purchase. And Chinese brands are meeting those rising expectations, across
categories. Second, being innovative increases the potential appeal of Chinese brands abroad,
ultimately raising the perception of Brand China. And Innovation creates points of Difference,
which become even more important as Chinese consumers encounter greater brand choice.
Difference enables brands to command a price premium in a market where more consumers
seek higher quality products and have the money to pay for them.
70 71
Observation 1: INNOVATION
…INNOVATION BUILDS DIFFERENCE… …AND INNOVATION STRENGTHENS GLOBAL COMPETITIVENESS

Consumers see innovative brands as Different, which is one of the components The ability to innovate also makes Chinese brands more competitive globally, positioning
of Brand Power, the BrandZ™ metric of brand equity. them to help China attain a greater leadership status outside of China.
Difference Index by level of Innovation Innovation Index of the BrandZ™ Global Top 100
Low Innovation Level

(95 or below)
81 UK Rest of the world China US
101 105 110 121
Medium Innovation Level
(96-109)
102
90 130
The Difference Index, driven
High Innovation Level
(110 or above)
148 by High Innovation Level, is +5
compared with 5 years ago.
Asia Continental
(excluding China) Europe
Innovation: Consumers see Innovative brands as creative, leading the way in their category and/
or shaking things up. An average score is 100; 110 and above is strong; 95 or below is weak. 104 110
Difference: Consumers see the brand as distinctive or trendsetting compared with other brands
Source: 2017 BrandZ™ Global Top 100 / Kantar Millward Brown’
in the category. An average score is 100; 110 and above is strong; 95 or below is weak.
73
Observation 2: PREMIUMIZATION
INNOVATIVE
RISING CONSUMER CONFIDENCE
UNLEASHES SPENDING
BRANDS,
Innovation leads to Difference, In 2014, Meaningful was the most about the future. Over the past 10
significant driver of Premium, years, the Consumer Confidence
one of the three components contributing 50 percent toward Index hovered just above 100 on
of Brand Power, the BrandZ™ the consumer inclination to pay a an index where 100 is average. But,
SEEN AS
measurement of brand equity. premium, relative to Difference and over the past two years, because
Salience, which together contributed of strong economic growth and
Consumers are more likely 50 percent. Meaningful is still low unemployment, the Consumer
to pay a premium price for important, but Chinese consumers Confidence Index rose sharply,
brands they view as Different. have moved on. Today, Difference reaching around 125.
has grown to almost 50 percent and
The other two Brand Power
DIFFERENT,
Meaningful has declined. Consequently, Chinese consumers
components are Meaningful are less price-sensitive in categories
(meeting consumer needs in The central reason for this change in where they have a lot of purchasing
attitude is that Chinese consumers experience, such as insurance,
relevant ways), and Salience enjoy greater choice and expect technology, cars, hotels, healthcare,
(coming easily to mind). brands that meet their needs. More retail, and apparel. Consumers are
COMMAND
Chinese are wealthier and optimistic also willing to enter new categories,
such as luxury and real estate, where
they exhibit price sensitivity when they
DIFFERENCE COMMANDS A PREMIUM… encounter premium prices
In 2014, Meaningful was the most significant driver of Premium. Today, Difference Brand ownership is no longer a factor
A PREMIUM
is the key driver of Premium and the contribution of Meaningful, while still for consumers paying premium prices.
important, has declined. In 2014, State Owned Enterprises
% Contribution to Premium (SOEs) and multinationals (MNCs) were
more likely to command a premium.
2014 37 50 13 Today, SOEs, market-driven brands,
and MNCs score 104, 103 and 100
respectively in the BrandZ™ Premium
Index, a BrandZ™ metric of a brand’s
2018 47 45 8
ability to command a Premium. (100
is average) And today, market-driven
Different Meaningful Salient
brands have the momentum.
The mix of equity components (Meaningful, Different, Salient) to justify a premium varies by
category and market. The bars show an average across categories.
BRAND IMPLICATIONS
The greater openness of Chinese consumers to pay more does not guarantee that they will.
Chinese consumers are not only more optimistic, they are more sophisticated. They respond
to brands that earn their attention, meeting their needs in relevant ways with products and
services that are innovative and Different. To command a Premium, brands need to match these
favorable market conditions with decisive actions, which requires offering distinctive products
and communicating the Difference clearly. The opportunity to earn a Premium is available to all
brands, across categories and regardless of whether they are SOEs, market-driven, or MNCs.
74 75
Observation 2: PREMIUMIZATION
…PREMIUMIZATION DEPENDS ON CONSUMER CONFIDENCE… …CONFIDENT CONSUMERS SPEND MORE ACROSS CATEGORIES…
Over the past two years, because of strong economic growth and low unemployment, China’s Consumer Chinese consumers are less price-sensitive in categories where they have a lot of
Confidence Index rose sharply, reaching around 125. purchasing experience. They exhibit price sensitivity when they enter potentially
Consumer Confidence Index premium categories, such as luxury and real estate, for the first time.
125 Premiumization / Categories
120 Less Price-Driven Categories More Price-Driven Categories
115
Insurance
110 Technology
Cars
105 Hotel
Healthcare
100
Retailers
(incl. E-commerce) Luxury Goods
95
Apparel
Real Estate
90
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 October
2017
These are categories in which consumer price sensitivity changed by 5 percent or more between
The Consumer Confidence Index rates the attitude of consumers about the economy on a scale of 0-to-200. 2014 and 2018.
Below 100 indicates pessimism, and above 100 indicates optimism.
Source: CEMAC, a subsidiary of the National Bureau of Statistics of the People’s Republic of China
…AND BRAND OWNERSHIP MATTERS LESS

In 2014, SOEs and MNCs were more likely to command a premium.
Today, brand ownership is not a factor for consumers paying premium prices.
Premium Index / Ownership
SOE Market-Driven MNC
2014 2014 2014
122 106 115
2018 2018 2018
104 103 100
Based on a comparison of the same 199 brands in 2014 and 2018. Premium Index: The BrandZ™ Premium Index measures the ability of a brand to
justify a price premium, relative to the category average, based only on consumer perception absent advertising or other activation factors. An
average score is 100; 110 or above is strong; 95 or below is weak.
76 77
H AV I N G ACQ U I R ED M A N Y N E W P OS S ES S I O N S ,
C H I N A’ S M I D D L E C L A S S I N T EN DS TO S E C U R E T H EM .
Observation 3: OWNERSHIP
MARKET- BUT BRANDING,
DRIVEN
NOT OWNERSHIP,
DETERMINES
BRANDS
SUCCESS
In his remarks to the 19th and 2018, Chinese market-driven brands appealing to consumers.
brands, increased 271 percent in value, Consumers see SOEs as less playful,
Party Congress, President Xi
SURPASS
and SOEs increased 2 percent. fun, and creative, according to
Jinping said that he expected BrandZ™ research. But consumers do
State Owned Enterprises External forces, both domestic and not view all SOEs the same way, as
international, impacted certain sectors indicated by the performance of the
(SOEs) to become lean and dominated by strategic SOEs. Banks fast growing SOEs in Value Growth.
more efficient. Analysis of suffered because of an extensive
SOEs IN RATE
the 2018 BrandZ™ China Top problem with non-performing loans. These fast growing SOEs include four
The global weakness of crude oil alcohol brands, which are consumer-
100 confirms the importance prices depressed brand value in facing by definition, one hotel brand,
of this reform to the future the oil and gas category. However, and one insurance brand. Consumers
vitality of SOE brands. a fundamental contrast in brand see these brands as significantly
characteristics between SOEs and more sexy, rebellious, and different
OF VALUE
market-driven brands also contributed than SOEs overall. Not every SOE
In 2014, 45 SOE brands comprised
to the shift in fortunes. will excel in these characteristics.
71 percent of the BrandZ™ China Top
But, across categories, all SOEs have
100 value. In 2018, 42 SOE brands
SOEs score lower than market- an opportunity to improve in brand-
comprise just 40 percent of the
driven brands on at least three brand relevant characteristics that help form
ranking’s total value. Between 2014
personality characteristic that make a closer bond with consumers.
APPRECIATION BRAND IMPLICATIONS

Many SOEs have become large and sluggish over time, and perhaps more responsive to
government directives than to customers. That dynamic may have served the SOEs—and
China—well during the former period when driving rapid economic growth was the overriding
priority. That approach becomes less useful in a period of moderating economic growth when
consumption replaces production as the key driver. SOEs need to adapt. And the good news is
that change is possible. Ownership is an elements of brand identity, but it does not automatically
determine brand destiny. As the evidence shows, SOE brands that embrace a consumer-focused
mindset can make a positive impression on consumers. This kind of change normally does not
happen overnight. But in China change needs to happen quickly, and speed will require deep
insight into consumer attitudes and behavior.
80 81
Observation 3: OWNERSHIP
MARKET-DRIVEN BRANDS RISE RAPIDLY IN VALUE… … AND MARKET-DRIVEN

Market-driven Chinese brands increased 271 percent in value between BRANDS SURPASS SOES IN
2014 and 2018, while SOEs increase 2 percent. KEY CHARACTERISTICS…
SOEs vs. Market-Driven Brands
In the BrandZ™ analysis of brand
Number of brands among BrandZ™ % of brand value among BrandZ™ personality characteristics, SOEs
China Top 100 – by ownership China Top 100 – by ownership score lower than market-driven brands
on at least three characteristic that
2014 2014 make brands appealing to consumers.
Brand Characteristics / Ownership
45 29%
55 71% Playful
42 40%
58 60%
Fun
2018 2018 Creative
Market-Driven SOE Market-Driven SOE Market-Driven SOE

Source: BrandZ™ / Kantar Millward Brown Source: BrandZ™ / Kantar Millward Brown
…BUT OWNERSHIP IS NOT DESTINY

The fast growing SOEs in Value Growth dispel the idea that all SOEs perform the same way. These SOEs include
four alcohol brands, which are consumer-facing by definition, one hotel brand, and one insurance brand.
Brand Characteristics Fast growing SOEs in brand value growth % (2018 vs. 2017)
Wu Liang Ye Luzhou Laojiao Home Inn
92% 48% 46%

S ex
y
Rebellious
Diffe
re n t
New China Life

Moutai Yanghe Insurance
Other SOEs Fast growing SOEs

43% 32% 27%
82 83
Observation 4: PURPOSE
BRAND
PURPOSE
HELPING IMPROVE SOCIETY LINKS
WITH NATIONAL GOALS
RISES IN
As described in these brand Brand Purpose is fundamental to from 28 percent to 38 percent. In 2015,
brand success worldwide. But in China, brands with high Brand Purpose scores
building observations, it manifests as Brand Purpose with generated 60 percent of the BrandZ™
Chinese consumers Chinese characteristics. At the 19th China Top 100 value; and in 2018, the
IMPORTANCE
today are wealthier, more Party Congress, President Xi Jinping high Brand Purpose brands generated 81
declared that the country has moved percent of value.
optimistic, and willing to pay beyond the pursuit of growth at all costs
a premium for innovative, of an era of responsible growth with a Still, the BrandZ™ China Top 100 lag the
differentiated brands. And goal of creating a more prosperous and BrandZ™ Global Top 100 in the Brand
equitable society. Brands compound Purpose. The Chinese brands average a
they are less concerned
FOR CHINESE
their chances for increasing brand value score of 107 compared with 110 for global
about whether a brand is when they align their Brand Purpose the brands. (100 is average) And 38 percent
state-owned, market-driven, larger national purpose. of Chinese brands score high in Brand
Purpose compared with 40 percent
or multinational. They do Analysis of the BrandZ™ China Top 100 of Global brands. The key takeaway is
care about Brand Purpose, found that between 2015 and 2018, not that Chinese brands are behind,
BRANDS
however. the number of China Top 100 brands however, it is that they are not far behind.
scoring high in Brand Purpose increased
BRAND IMPLICATIONS
The game is changing for brands that want to compete successfully in China. Chinese
brands were never as engaged in Corporate Social Responsibility (CSR) as brands
in other parts of the world. The larger agenda for Chinese brands—beyond making
money—generally has been to advance the welfare of the nation. State Owned
Enterprises (SOEs) engaged most explicitly. And like brands everywhere, the primary
purpose of a Chinese brand is to bring something useful into the world that benefits
customers and produces a financial return for stakeholders. Many brands in other
country markets choose to articulate a higher purpose that pertains to improving the
world in a brand-relevant way. In China, having a higher purpose is less of an elective
for brands since the 19th Congress refined national priorities. Chinese leadership
expects brands to pursue a particular higher purpose: to improve the lives of Chinese
people, to help drive greater economic equality, and to strengthen the nation.
84 85
Observation 4: PURPOSE
MORE CHINA TOP 100 BRANDS SCORE HIGH IN PURPOSE…

The number of China Top 100 brands scoring high in Brand Purpose
increased from 28 percent to 38 percent between 2015 and 2018.
Brand Purpose / % Brands in Top 100
2015 22% 50% 28%
2018 12% 50% 38%

Brand Purpose: It measures the perception that a brand is helping improve people’s lives.
An average score is 100; 110 or above is strong, 95 or below is weak.
…AND PURPOSEFUL BRANDS GROW IN VALUE…

In 2015, brands with high Brand Purpose scores generated 60 percent of
the BrandZ™ China Top 100 value. In 2018, the high Brand Purpose brands
generated 81 percent.
Brand Purpose / Value of Top 100
2015 3% 37% 60%
2018 1% 18% 81%
…BUT CHINESE BRANDS STILL LAG GLOBAL LEADERS

The BrandZ™ China Top 100 lag the BrandZ™ Global Top 100 in the Brand Purpose.
The Chinese brands average a score of 107 compared with 110 for global brands.
Brand Purpose / Chinese vs. Global Brands
China 12% 50% 38%
Global 4% 56% 40%

The analysis compares the Brand Purpose scores of brands in the 2018 BrandZ™ China Top 100
with brands in the 2017 Global Top 100. (13 Chinese brands appear in the Global ranking.)
86 87
Observation 5: GOING DEEP
PURCHASING MARKET-DRIVEN BRANDS GAIN
POWER,
INCREASING MOMENTUM
The popular image of China’s megacities are experiencing GDP while brand importance has remained
growth near the national rate, which has fairly steady in Tier 1 cities.
modern China usually
INTEREST IN
been around 6.9 percent. The Top 10
focuses on the rapid cities with the highest GDP growth are And consumers in lower tier cities are not
transformation of its all lower tier cities with growth rates that shopping for price exclusively. Recent
vary from 9-to-12 percent. research by Kantar Worldpanel dispels
megacities. But less than 10 that notion, and finds that people in lower
percent of China’s 1.3 billion These cities are burgeoning as Chinese tier cities pay around the same prices
BRANDS RISE
people live in Shanghai, producers move inland to lower-cost as consumers in higher tier cities across
regions. And consumers in these regions 15 fast moving consumer goods (FMCG)
Beijing, and Guangzhou. are becoming wealthier. This shift sectors.
Over a billion people live reflects the government’s intention to
in other cities, where sustain China’s economic growth, but Also revealing, across Tiers 1, 2, and
at a responsible pace and in ways that 3, the Premium Index—the ability of a
the Chinese economy is
IN LOWER
advance economic equality. brand to command a premium price—is
growing fastest. rising for market-driven brands and
Critically, brand, which has been declining to average or below average
important in larger cities, is becoming for State Owned Enterprises (SOEs) and
more important in lower tier cities. multinationals (MNCs). Market-driven
In 2014, for example, 88 percent of brands enjoy momentum that is clearest
TIER CITIES
people in Tier 3 cities considered brand in the lower tiers, where they typically
important, compared with 98 percent in benefit from relatively greater local
Tier 1 cities. Today, 94 percent of people knowledge and distribution capability.
in Tier 3 cities consider brand important,
BRAND IMPLICATIONS
China’s lower tier cities contain its greatest market opportunities. And profiting from those
opportunities increasingly depends on brand. Market-driven brands currently have the
advantage because of their strengths in lower tier cities relative to SOEs and multinationals.
But all brands, regardless of ownership, may need to adjust their strategic thinking. Describing
the potential in China’s lower tier cities sounds as if one massive opportunity awaits. The reality
is more complicated. Each lower tier market is different and requires its own marketing and
communication strategy. Of course, in an aggregate market of over one billion people, it should
be possible to find some economies of scale, eventually. But the immediate concern should be
brand building, based on pertinent insights, market-by-market.
88 89
THE MAJORITY OF CHINESE LIVE IN LOWER TIER CITIES… …WHERE GDP IS GROWING FASTEST…
Less than 10 percent of China’s 1.3 billion people live in major cities of Shanghai, Beijing, and Guangzhou. Over a billion people live in lower tier cities where the Chinese economy is growing fastest.
City Tiers / % Urban Population City Tiers / GDP Growth
Tier 1 cities GDP growth rate in 2016 Top 10 Chinese cities with the highest GDP growth rate in 2016
8% 25% 34% 15% 18% Tier 2 Tai’an
Tier 3 Hefei 9.3%
10.0% Suqian
Urumqi
TIER 1 TIER 2 TIER 3 TIER 4 TIER 5 9.3%
Beijing 10.1% Changsha
Beijing / Provincial Capitals Prefecture Level Cities County Cities County Urban Areas
Shanghai / plus select others (252 cities) (369 cities) (1,630 cities) 6.7% 9.4%
Guangzhou eg. Shenzhen / Shanghai Yancheng
Chongqing 6.7% 9.0%
(33 cities) 67% Zhenjiang
Guangzhou 9.1%
Source: Kantar Millward Brown 8.0% Hangzhou
10.0%
Chongqing Wuhu
10.7% 9.5%
Zunyi Guiyang Zhangzhou
Source: National Bureau of Statistics of the People’s Repubic of China 12.0% 11.0% 9.3%
90 91
… BRAND IS BECOMING MORE … AND MARKET-DRIVEN

IMPORTANT… BRANDS ARE MORE LIKELY
Brand, which has been important TO COMMAND A PREMIUM
in larger cities, is becoming more Across Tiers 1, 2, and 3 cities, the
important in lower tier cities. In 2014, Premium Index—the ability of a brand
for example, 88 percent of people to command a premium price—is
in Tier 3 cities considered brand rising for market-driven brands and
important, compared with 98 percent declining to average or below average
in Tier 1 cities. Today, 94 percent of for State Owned Enterprises (SOEs) and
people in Tier 3 cities consider brand multinationals (MNCs).
important, while brand importance has
remained fairly steady in Tier 1 cities. Premium Index
Brand Importance +/- Change from 2014
Tier 1 97 101
88
98% 97%
Tier 1 -3 +9 -10
41% 43%
2014 2018
103 98
Brand is important
Brand is very important
86
Tier 2
Tier 2 -7 +7 -10
94% 96%
107
33% 41% 97
86
2014 2018
Brand is important
Brand is very important
Tier 3 -8 +5 -11
Tier 3
SOEs
Market Driven
88% 94% MNCs
Average performance of cars, consumer

electronics, dairy, facial care, mobile phones,
30% 38% and soft drinks
2014 2018
Premium Index: The BrandZ™ Premium
Brand is important Index measures the ability of a brand to
Brand is very important justify a price premium, relative to the
category average, based only on consumer
Average performance of cars, consumer
perception absent advertising or other
electronics, dairy, facial care, mobile phones,
activation factors. An average score is 100;
and soft drinks
110 or above is strong; 95 or below is weak.
92 93
C H I N ES E L E A D ER S H I P I S R EBA L A N C I N G T H E N AT I O N . . .
. . .TOWA R D G R E AT E R W E A LT H , E Q UA LIT Y, A N D P OW ER .
Observation 6: GOING GLOBAL
CHINESE ACCEPTANCE VARIES BY
BRANDS FIND
CONSUMER AGE, AND COUNTRY
Just as going deeper China had been quietly advancing its The acceptance of Chinese brands
global ambitions before President Xi varies by age. Younger people are more
into China aligns with
GROWING
Jinping forcefully articulated them at the likely to view Chinese brands positively
the government’s goal 19th Party Congress. In 2006, only one and associate them with innovation.
of building a broader, Chinese brand ranked in the BrandZ™ In contrast, older people are more
Top 100 Most Valuable Global Brands. likely to associate Chinese brands with
more equitable society, That brand, China Mobile, was valued at lingering impressions of China as a place
going global aligns $39.2 billion. Today, 13 Chinese brands known for cheap and sometimes unsafe
CONSUMER
with the government’s rank in the BrandZ™ Global Top 100. products.
Valued at $406.0 billion, they represent a
complementary goal of 937 percent increase in brand value. And worldwide acceptance of Chinese
reviving China’s historical products is increasing, but with
stature as a cultural and And consumers globally are more aware variations by country, according to a
of Chinese brands across categories, BrandZ™/Google survey. Britons are
geo-political world power.
AWARENESS
as documented by BrandZ™ analysis most receptive to Chinese brands; 72
of overseas Chinese brand building percent said that knowing a brand came
conducted in collaboration with Google. from China would not change or would
Between 2013 and 2017, the gap increase their inclination to purchase.
between online searches for Chinese Conversely, two-thirds of Japanese said
brands and brands from other nations knowing a brand came from China would
ABROAD
has narrowed 29 percent. weaken their desire to purchase it.
BRAND IMPLICATIONS
Until recently, many exporting Chinese brands expanded first to nearby countries in Asia
where cultural affinity helped accelerate acceptance. Today, Chinese brands, from a wide
group of categories, are moving beyond neighboring regions to serve consumers globally. The
government’s Belt and Road initiative inspires some of this activity but does not guarantee its
success. That depends on brand building activities to educate consumers, country-by-country,
about Chinese brands, and updating consumer impressions of Brand China. The measurement
of overseas brands success will be about generating sales, but also demonstrating category
leadership.
96 97
Observation 6: GOING GLOBAL
MORE CHINESE BRANDS … AND CONSUMERS ARE BECOMING MORE AWARE OF CHINESE …BUT ACCEPTANCE VARIES BY AGE… …AND ACCEPTANCE VARIES BY COUNTRY
ARE GOING GLOBAL… BRANDS… Younger people are more likely to view Chinese brands And the acceptance of Chinese brands varies by country, with
In 2006, only one Chinese brand Between 2013 and 2017, the gap between online searches for Chinese brands and positively and associate them with innovation. In contrast, the greatest acceptance in the UK and the greatest resistance
ranked in the BrandZ™ Top 100 Most brands from other nations has narrowed 29 percent. older people are more likely to associate Chinese brands with in Japan.
Valuable Global Brands. Today, lingering impressions of China as a place known for cheap and Purchasing Intention / Country
Search Volume Gap
13 Chinese brands ranked in the sometimes unsafe products.
BrandZ™ Global Top 100. Valued at Overseas Purchasing Intention / Age 28% 63%
$406.0 billion, they represent a 937
percent increase in brand value.
Brands
-29% 12%
UK
36% 55%
% of total value in the 10% Germany
Global BrandZ™ top 100 38% 56%

8% Spain
2006
3% 6% 41% 52%
1 brand Chinese Australia
$39,168 Million Brands 4% 47% 47%

2013 2014 2015 2016 2017 US
2%
Top 50 Chinese Brands vs. 561 Overseas Brands 50% 40%
Based on the BrandZ™ Top 50 Chinese Global Brand Builders and 561 brands from France, Germany, Spain, the UK, the US, France
Australia, and Japan 0%
China BrandZ™ / Google Search Index 18 - 24 25 - 34 35 - 44 45 - 54 55+ 66% 29%
Japan
Others Years Years Years Years Years
Total 43% 50% 7%
% saying that knowing a brand comes from China will make their purchasing intention
stronger or much stronger Weaker No Difference Stronger
+937%
Source: BrandZ™ / Kantar Millward Brown / Google Source: BrandZ™ / Kantar Millward Brown / Google
2017
11%
13 brands
$406,026 Million
China
Others
98 99
Observation 7: 360 COMMUNICATION
MULTIPLE
MEDIA MIX
MOBILE OCCUPIES
MOST TIME, BUT
IS THE BEST
TRADITIONAL
MEDIA IS VITAL
OPTION FOR
The brand building People across generations, but In addition, with the need to reach
especially young people, rely on consumers across so many media,
observations included in this multiple media channels. Mobile is by far advertisers are investing in ways
section are critical elements where people spend most of their media to communicate with consumers at
for building brand value. But time. Over 70 percent of members of the moments when they have an
REACHING
Gen Z (16-to-19 years old), Gen Y (20 to opportunity to grab their attention.
even brands that excel in 34 years old), and Gen X (35 to 49 years Investment is rising in cinema video and
being innovative, different, old) spend at least one hour daily on a elevator TV, for example. These media
commanding a premium, mobile device. work most effectively for fast moving
consumer goods (FMCG). Adding more
and having a clear purpose Despite the importance of mobile and targeted media to the mix improves
need to take another step
CHINESE
digital, however, it is vital not to dismiss effectiveness for brands in durables and
and communicate, with a traditional media—TV, print, and radio. services.
Chinese still spend a lot of time with
variety of media—digital but traditional media. Around 54 percent The results of multiscreen campaigns
not only digital. watch traditional TV daily and spend an are clear and measurable. Over
hour or more on average, for example, the past three years, brands in
more time than they spend with online the BrandZ™ China Top 100 that
newspapers and magazines. continuously invested in multiscreen
campaigns increased 44.6 percent
in value. In contrast, brands that did
not continuously invest in multiscreen
BRAND IMPLICATIONS campaigns increased only 24.6 percent

in value.
Because mobile is so dominant in China, it is easy to Finally, it is important to make two

assume that mobile or digital alone would be enough to other points. First, the definition of TV
reach and impact the relevant audiences. BrandZ™ analysis is becoming broader, to encompass
traditional TV broadcasts and internet
indicates that this approach would deliver less than optimal
TV as well as a variety of other viewing
results, and that a multimedia approach, even using channels, such as PCs, mobile devices
new media, such cinema video or elevator video, will be and elevator LCD. Second, the size of
more effective. The media landscape is rapidly changing. the screen can make a measurable
Celebrities are still important, for example. But brands difference in brand impact. Bigger
need to select the right celebrity and the celebrity needs screens are becoming a trend across
traditional TV, mobile devices and
to seem more accessible and relatable than in the past.
elevator LCD.
100 101
Observation 7: 360 COMMUNICATION
CHINESE USE MULTIPLE MEDIA CHANNELS … THEY SPEND MANY HOURS ON BOTH DIGITAL …ADVERTISERS ARE INVESTING IN NEW MEDIA…
DAILY… AND TRADITIONAL MEDIA… With the need to reach consumers across so many media, and grab attention, advertisers are investing in new media such as
Mobile is by far where people spend most of their media Chinese still spend a lot of time with traditional media. cinema video, where advertisers increased spending 25.5 percent, and elevator TV, where spending rose 20.4 percent.
time. But it is vital not to dismiss the traditional sources— Around 54 percent watch traditional TV daily and spend Media Channels / Spending
TV, print, and radio. an hour or more on average, for example, more time than Media spending % change/channel 2017 25.5%
Media Channels / Generations they spend with online newspapers and magazines. 20.4%
% engaged on each medium for one hour or more per day Media Channels / Daily Use 18.8% 12.4%
TRADITIONAL MEDIA
6.9%
Newspapers/Magazines 1.7%
Gen Z Gen Y Gen X
35% -1.0% -1.0%
72% 71% 72% 0.4 hours
per day
Mobile
TV
-18.9%
Laptop
65% 64% 71%
54% -32.5%
1.1 hours Radio
TV Newspaper Magazine Radio Out-of-home Elevator Elevator Cinema Transport Internet
46% 52% 54% per day
32%
(Traditional) TV Post Video Video
TV
0.4 hours
Source: CTR Market Research
per day
44% 42% 33%
Outdoor DIGITAL MEDIA
… AND THE MULTIPLE SCREEN APPROACH
CORRELATES WITH BRAND VALUE GROWTH
Over the past three years, brands in the BrandZ™ China Top
24% 18% 12%
100 that continuously invested in multiscreen campaigns
Magazines
increased 44.6 percent in value. In contrast, brands that did
not continuously invest in multiscreen campaigns increased
20% 15% 11% Online Newspapers/Magazines only 24.6 percent in value.
Radio
Media Channels / Value Growth
16% 17% 8 66%

Newspapers 0.7 hours
per day
Source: Kantar Millward Brown 2017 AdReaction (China)
44.6%
24.6%
Online Video Brands NOT continuously Brands continuously
79%
campaign through multiple campaign through multiple
screens in the last 3 years screens in the last 3 years
Source: BrandZ™ / Kantar Millward Brown / CTR Market Research

1.3 hours
per day
Internet Radio /Music
41%
0.6 hours
per day
102 Source: Kantar TNS / Connected Life China 2017-18 103

Observation 8: CAMPAIGN INTEGRATION
CUSTOMIZED
OPTIMIZATION DEPENDS
ON GREAT ADVERTISING
ADS, NOT
One of the results of the Consumers object not only to agree, according to 2018 Kantar Millward
the ubiquity of ads but also to Brown AdReaction research.
digital media explosion their randomness. They assume
is that messages appear that advertisers able to place ads Integrated and customized campaigns
BOMBARDMENT,
everywhere, as advertisers everywhere should be able to integrate work best when they begin with a strong
ads, (make the creative elements and central idea and organically develop
attempt to reach the right messages relate across media channels), all the campaign elements, including
consumer at the perfect and customize ads (make ads relevant to logo, story, message and characters.
time. However, this constant where and when they appear, and whom Integration and customization can take
SWAYS
they target). time, but it pays off. Integration and
messaging has created a customization result in measurably more
negative reaction among However, 39 percent of Chinese efficient campaigns.
some consumers worldwide consumers say that rather than
integrating their ads, advertisers are A final element is critical for the success
who feel as if they are being “trying to be all things to all people.” And of any campaign, even for the strongest
CONSUMERS
bombarded. This reaction is around a majority of Chinese consumers brands—great advertising. In the 2018
particularly pronounced in say brands should customize their ads BrandZ™ China Top 100, brands that
based on “who will see them” and when scored high in the BrandZ™ Innovation
China. and where the ads appear. For example, metric, but ran poor ad campaigns,
about a third of young people think that increased value 14 percent year-on-year.
online video should be edgy or risky, In contrast, when brands combined high
but less than a fifth of people 45-to-65 Innovation scores with great advertising
the percentage value increase doubled.
BRAND
IMPLICATIONS
The success of advertising and marketing
communication—the ability to reach
consumers everywhere and all the time—
has created new challenges. Consumer
do not necessarily want to hear from
advertisers every moment of their lives.
Smart advertisers will be sensitive to the
desires of their audiences. And they will
make this respect for the consumers’
time a positive point of difference.
When they ask for the consumers time,
consumers will be more inclined to listen.
At that point, it is important to deliver
relevant, creatively excellent advertising.
104 105
CONSUMERS FEEL BOMBARDED BY ADS… …CONSUMERS FEEL CAMPAIGNS ARE NOT INTEGRATED…
Consumers worldwide, but especially in China, feel bombarded with ads. Consumers lose interest and trust when they are targeted with too many ads,
This feeling is most prevalent among young people, often the target of advertisers. with differing messages, from the same advertiser.
Campaign Bombardment Campaign Integration
COMPARED TO 3
YEARS AGO... Global
China 16-29 Years 30-44 Years 45-65 Years Average China
...I see more advertising now
% Agree
84% 92% 79% 81% 74% 39%
China
China
32%
China
29% 25% China
17%
Too many different Too many irrelevant ads Too many different What brands say in ads
I feel they are trying to be
messages from one from one brand makes me messages from one brand is often different from the
all things to all people
brand is confusing stop paying attention makes me trust them less reality of using them
Global Global Average Global Average

China 16-29 Years 30-44 Years 45-65 Years Average
22% 22%
...Ads are appearing Global Average
Global Average
85% 94% 80% 80% 81%
in more places now Global Average
% Agree
33% 39% 33%
What do you think about advertising from the same brand which uses different messages in different places?’
Source: Kantar Millward Brown 2018 AdReaction (China) Source: Kantar Millward Brown 2018 AdReaction (China)
106 107
… CONSUMERS FEEL ADS … BUT INTEGRATED AND CUSTOMIZED … AND GREAT ADVERTISING OPTIMIZES RESULTS
ARE NOT CUSTOMIZED… CAMPAIGNS GAIN UPLIFT… In the 2018 BrandZ™ Top 100, brands high in innovation that
Roughly half of Chinese consumers say brands should communicated with less impactful advertising increased
Integrated campaigns benefit from a measurable uplift
customize their ads based on “who will see them” and when value 14 percent year-on-year. However, brands that excelled
because they tell a similar message across audiences and
and where the ads will appear. at both innovation and great advertising increased in value
customize by media.
27 percent.
Campaign Customization Campaign Uplift +57% Advertising / Value Growth
High
+27%
+31% +15%
52% 47% 42%
GREAT ADS
Brands should tailor Brands should tailor Brands should tailor
their ads based on their ads based on their ads based on
Integrated Integrated and
who will see them when they will appear where they appear
(Similar ads but not Customized
tailored by media) (Similar ads tailored by media)
Global
Global Average Global
37%
Average Average Contribution to uplift by campaign type.
51% 49 % In an Index measuring the effectiveness of multi-channel campaigns on brand Key

Performance Indicators (awareness, usage, image, for example), 100 is the benchmark for
brands that are neither integrated nor customized. Categories: Food and beverages, retail,
+9% +14%
travel, personal care, financial services, technology, automobiles.
Source: Kantar Millward Brown global Low INNOVATION High

What do you think about advertising from the same brand which
CrossMedia studies 2015-to-2017 (223 studies).
uses different messages in different places? % BrandZ™ China Top 100 value growth 2018 vs. 2017
Source: Kantar Millward Brown 2018 AdReaction (China) Source: BrandZ™ / Kantar Millward Brown
108 109
A S ST R O N G E CO N O M I C G R OW T H CO N TI N U ES ,
T H E F O C U S S H I F TS TO AC H I E V I N G T H E C H I N ES E D R E A M .
MUTIANYU GREAT WALL, BEIJING
THE
BRANDZ™
CHINA TOP 100
04 THE CHINA TOP 100 TOP 100 Most Valuable Chinese Brands 2018
BRANDZ™ TOP 100 MOST VALUABLE CHINESE BRANDS 2018

Brand Value Brand Value Brand Brand Value Brand Value Brand
Brand Category Brand Category
US$ Mil. % Change 2018 vs. 2017 Contribution US$ Mil. % Change 2018 vs. 2017 Contribution
1 26
Home
Tencent Technology 132,213 25% 5 Midea 3,896 40% 4
Appliances
2 Alibaba Retail 88,623 53% 3 27 Vanke Real Estate 3,640 6% 3
3 28
Telecom
China Mobile 49,231 -15% 4 Yunnan Baiyao Healthcare 3,621 18% 4
Providers
4 ICBC Banks 37,213 18% 2 29 Netease Technology 3,558 36% 4
5 Baidu Technology 24,990 5% 5 30 Suning Retail 3,394 0% 3
6 Huawei Technology 24,115 18% 4 31 China Minsheng Bank Banks 3,213 -8% 2
7 32
Home
Moutai Alcohol 23,175 43% 5 Gree 3,139 78% 3
Appliances
8 33
Home
Ping An Insurance 22,363 36% 3 Haier 3,068 32% 4
Appliances
9 China Construction Bank Banks 20,120 9% 2 34 Ctrip Travel Agencies 3,063 36% 3
10 Agricultural Bank of China Banks 16,158 9% 2 35 China Eastern Airlines Airlines 3,031 3% 3
11 SF Express Logistics 14,650 NEW 5 36 YTO Express Logistics 2,844 NEW 4
12 JD.COM Retail 14,579 50% 3 37 Yunda Express Logistics 2,603 NEW 4
13 China Life Insurance 13,665 4% 3 38 ZTO Express Logistics 2,601 NEW 4
14 Bank of China Banks 13,143 12% 2 39 Lenovo Technology 2,593 -22% 3
15 Sinopec Oil & Gas 10,667 -14% 1 40 Shuanghui Food & Dairy 2,593 9% 3
16 PetroChina Oil & Gas 9,634 1% 1 41 PICC Insurance 2,523 7% 2
17 42
Telecom
China Telecom 8,807 -1% 4 China Southern Airlines Airlines 2,502 4% 3
Providers
18 China Merchants Bank Banks 8,347 27% 2 43 New Oriental Education 2,451 48% 5
19 Yili Food & Dairy 7,637 21% 5 44 Country Garden Real Estate 2,362 32% 3
20 Mengniu Food & Dairy 5,364 7% 5 45 New China Life Insurance 2,289 27% 2
21 Air China Airlines 5,237 8% 4 46 Wu Liang Ye Alcohol 2,192 92% 4
22 CPIC Insurance 5,195 23% 3 47 iQiyi Technology 2,187 64% 4
23 48
Telecom
China Unicom 5,109 11% 3 Youku Technology 2,104 N/A 4
Providers
24 Evergrande Real Estate Real Estate 4,486 88% 3 49 Yanghe Alcohol 2,030 32% 4
25 Bank of Communications Banks 4,202 0% 2 50 Tong Ren Tang Healthcare 1,983 4% 5
Brand contribution measures the influence of brand alone on earnings, on a 1-to-5 scale, 5 being highest.
Source: BrandZ™ / Kantar Millward Brown (including data from Bloomberg).
116 117
BRANDZ™ TOP 100 MOST VALUABLE CHINESE BRANDS 2018

Brand Value Brand Value Brand Brand Value Brand Value Brand
Brand Category Brand Category
US$ Mil. % Change 2018 vs. 2017 Contribution US$ Mil. % Change 2018 vs. 2017 Contribution
51 Poly Real Estate Real Estate 1,977 -9% 4 76 Yonghui Superstores Retail 840 29% 2
52 ZTE Technology 1,900 35% 3 77 Bright Dairy Food & Dairy 798 -8% 5
53 vip.com Retail 1,875 -14% 3 78 Anta Apparel 778 16% 3
54 79
Home
BYD Cars 1,861 4% 2 Supor 732 39% 5
Appliances
55 STO Express Logistics 1,810 NEW 4 80 Industrial Bank Banks 711 11% 1
56 Luzhou Laojiao Alcohol 1,766 48% 4 81 Home Inn Hotels 686 46% 5
57 China CITIC Bank Banks 1,661 9% 2 82 Hanting Hotels 670 50% 5
58 Dong E E Jiao Healthcare 1,493 NEW 4 83 R&F Properties Real Estate 638 18% 3
59 84
Home
Robam 1,482 49% 5 Gujing Gong Jiu Alcohol 604 13% 4
Appliances
60 Tsingtao Beer Alcohol 1,278 5% 5 85 Gemdale Real Estate 601 -12% 2
61 Harbin Beer Alcohol 1,261 5% 4 86 By-Health Healthcare 592 NEW 4
62 Snow Beer Alcohol 1,190 7% 4 87 Herborist Personal Care 557 13% 4
63 88
Home
Qunar Travel Agencies 1,159 NEW 3 Flyco 537 NEW 3
Appliances
64 Sina Technology 1,116 24% 5 89 Eastern Gold Jade Jewelry Retailer 522 28% 4
65 Xueersi Education 1,095 139% 4 90 Geely Cars 476 75% 1
66 National Cellar 1573 Alcohol 1,021 NEW 4 91 China Everbright Bank Banks 391 9% 2
67 92
Home
CR Sanjiu Healthcare 1,010 5% 4 Hisense 383 2% 2
Appliances
68 ChangYu Alcohol 951 -10% 5 93 Fortune Food & Dairy 382 3% 5
69 Great Wall Cars 936 19% 1 94 China Taiping Insurance 382 22% 1
70 Heilan Home Apparel 920 6% 3 95 Caissa Travel Agencies 355 -17% 3
71 Dabao Personal Care 913 9% 2 96 Anerle Baby Care 355 3% 4
72 97
Home
Longfor Real Estate 887 29% 3 Vatti 352 54% 4
Appliances
73 Greenland Group Real Estate 868 NEW 3 98 SOHO China Real Estate 351 1% 3
74 Hainan Airlines Airlines 861 -5% 2 99 Sanquan Food & Dairy 346 -13% 4
75 100
Home
Lao Feng Xiang Jewelry Retailer 841 14% 5 TCL 311 14% 2
Appliances
Brand contribution measures the influence of brand alone on earnings, on a 1-to-5 scale, 5 being highest.
Source: BrandZ™ / Kantar Millward Brown (including data from Bloomberg).
118 119
Newcomers
MARKET
FORCES
AND BRAND
STRENGTH
PROPEL
NEWCOMERS
NEW CATEGORY, Five of the 11 Newcomers, brands Each of the Newcomer brands the number of packages and opened SF Express, rooted in a business that
benefited from a combination of an opportunity to rationalize a began in 1993, is now the largest of
that appear in the BrandZ™ China Top
LOGISTICS,
brand strength and market forces that fragmented business into a category. the services and the last to go public,
100 for the first time, are in logistics, drove expansion of their respective The delivery business expanded by early in 2017. Funds are helping the
a category added to the ranking this categories. The travel agency around 50 percent between 2010 and brand expand, even in the US, with
REPRESENTED year. Two of the brands are in health

category rose 57 percent; alcohol, 37
percent; and real estate, 28 percent,
2014, according to China’s State Post
Bureau.
the opening of a new logistics center
in California. By purchasing a major
WITH 5 BRANDS
care, and these categories are also for example. Category dynamics alone stake in a Hong Kong-based logistics
represented with one brand apiece: do not explain the rise of these brands, The Chinese government was eager company, YTO, established in 2000,
however, because other brands from to establish a logistics category. To expects to expand its global presence.
travel agencies, real estate, home these same categories dropped out of obtain funding for accelerated growth, Alibaba holds a stake in YTO.
appliances, and alcohol. the BrandZ™ China Top 100. many logistics brands pursued back-
door listings, in which they purchased
Logistics illustrates the point. Until or merged with public companies
recently, the category barely existed to gain instant presence on stock
in China, where individual couriers exchanges. These five newcomers
typically delivered packages piled on emerged as leaders: SF Express, YTO,
their bicycles. The meteoric rise of Yunda Express, ZTO Express, and
e-commerce exponentially increased STO.
120 121
Newcomers
THE NEWCOMER BRANDS
SF Express YTO Express Yunda Express ZTO Express STO Express Dong E E Jiao Qunar National Cellar 1573 Greenland Group By-Health Flyco
Top 100 Rank 2018 11 36 37 38 55 58 63 66 73 86 88

Category Logistics Logistics Logistics Logistics Logistics Health Care Travel Agencies Alcohol Real Estate Health Care Home Appliances
Brand Value US$ 14,650 Mil. US$ 2,844 Mil. US$ 2,603 Mil. US$ 2,601 Mil. US$ 1,810 Mil. US$ 1,493 Mil. US$ 1,159 Mil. US$ 1,021 Mil. US$ 868 Mil. US$ 592 Mil. US$ 537 Mil.
Source: BrandZ™ / Kantar Millward Brown (including data from Bloomberg)
The burgeoning concern with

personal health among Chinese
middle-class consumers drove the
popularity of two of the newcomer
brands—Dong EE Jiao and By-Health.
Dong EE Jiao experienced strong
demand for products made from a
gelatin contained in donkey skin.
By-Health is a maker of vitamins,
dietary supplements, and other health
and wellness products. Both brands
envision a global market for Chinese
health and wellness products.
Newcomer Qunar is a travel booking

website acquired from Baidu by Ctrip,
China’s most valuable travel brand.
The alcohol newcomer, National Cellar
1573, is a brand of baijiu, China’s
traditional white liquor made from
sorghum. The 1573 date refers to the
founding of the brand during the Ming
dynasty, a heritage that enables this
high-end sub-brand of the Luzhou
Laojiao Company to command a
premium. Flyco produces small electric
gadgets such as shavers, hair curlers,
and garment steamers—the kind of
convenience lifestyle products that
Chinese consumers are increasingly
willing to spend their discretionary
money on.
122 123
Top 20 Risers
HALF OF THE
TOP RISERS
The three Baijiu brands in this year’s
Top 20 Risers—Wu Liang Ye, Luzhou
Laojiao, and Moutai—also appeared in
last year’s Top Riser ranking. Several
factors, including a consumer shift to
INCREASE
premium drinks, accelerated growth.
After a strong revenue rise and stock
market performance, Moutai became
the world’s most valuable liquor
company in market capitalization,
50% OR MORE
ahead of Diageo.
The strength of the education

category, with both Xueersi and New
Oriental again among the Top Risers,
reflects the priorities of Chinese
society: the determination to succeed;
and the commitment of Chinese
parents to provide their children with
EDUCATION BRAND XUEERSI

the tools necessary for success. The
education brands mostly focus on the
LEADS, WITH 139 PERCENT RISE

rote learning required to advance in
China’s test-driven education system,
or to score high on the testing for
study abroad. However, Xueersi
enriched its curriculum with a program
Brand strength and market Xueersi also led the Top Risers a year The fastest-rising home appliance for developing critical thinking ability.
ago, with a value rise of 58 percent, brand is Gree, which rose 78 percent And the education brands expanded
forces drove exceptionally a strong result but less than half of its in value, in part because China’s access with more online courses.
strong valuation growth percentage increase this year. A year unusually hot summer created
in the BrandZ™ Top 100 ago, Xueersi was the only Top 20 Riser business for the nation’s largest In the technology category, iQiyi, a Having helped drive China’s JD.com leveraged its strength in
whose value increased more than air conditioner maker. The other streaming video site owned by Baidu, e-commerce phenomenon, with logistics, adding more distribution
Most Valuable Chinese 50 percent. This year half of the Top appliance Top Risers are: Vatti, up 54 appeared in the Top Riser list for the differing strategies, the two retail Top locations. It also strengthened its
Brands, as illustrated by 20 Risers increased by more than 50 percent; Robam, 49 percent; Midea, first time, with a brand value increase Risers, Alibaba and JD.com, reaped partnerships with Tencent and
the performance of the Top percent, and the other half increased 40 percent; and Supor, 39 percent. of 64 percent resulting from strong the benefits of success, with value Walmart. By integrating its shopper
by 36-to-49 percent. brand positioning and its announced rising, respectively, 53 percent and 50 data with Tencent’s WeChat, JD.com
20 Risers, the brands that Brands of Baijiu, China’s traditional IPO. NetEase, an online game percent. Alibaba’s multiple platforms expanded its ability to connect with
appreciated the most in Top riser value growth was distributed clear liquor, exceeded the impressive marketer, made the Top 20 Riser list connected buyers and sellers in China consumers at all times, particularly
value year-on-year. The No. across 10 categories. Home 37 percent growth of the alcohol for the third consecutive year, rising 36 and abroad. And its other platforms, when they are interested in
appliances was most represented category overall. Wu Liang Ye, the No. percent in value. The brand, which also including Alipay, enabled users to shopping. Both JD.com and Alibaba
1 Top Riser, the education category, with five brands, followed 2 Top Riser, increased 92 percent in operates a cross-border e-commerce conduct business or engage in social purchased, or created partnerships,
brand Xueersi, increased in by alcohol with three brands, and brand value. Baijiu brands have been site, Kaola.com, increased its mobile media without leaving Alibaba’s vast with supermarkets, adding physical
value 139 percent. education, technology, retail, and rebounding steadily from the impact presence and also boosted its revenue ecosystem. On China’s Single’s Day, locations and accelerating their move
hotels with two brands each. One of government restrictions on lavish from advertising, email, and other a shopping holiday in November, into grocery.
brand appeared from real estate, cars, entertainments. services. Alibaba generated $25 billion in sales.
insurance, and travel.
124 125
Top 20 Risers
THE TOP 20 RISERS IN BRAND VALUE

In the remaining categories—cars,
real estate, insurance, and travel
agencies—the brand that appears
1 2 3 4 5
in the Top Riser list significantly
outperformed its respective category.
Xueersi Wu Liang Ye Evergrande Real Estate Gree Geely
Car brand Geely increased 75 percent
in value, while the cars category rose # 65 # 46 # 24 # 32 # 90
5 percent. Geely sold over 1 million Education Alcohol Real Estate Home Appliances Cars
vehicles and launched its Lynk & Co
brand, which it developed with Volvo US$ 1,095 Mil. US$ 2,192 Mil. US$ 4,486 Mil. US$ 3,139 Mil. US$ 476 Mil.
and intends to introduce outside of
China. 139% 92% 88% 78% 75%
Although the real estate category 6 7 8 9 10
increased a healthy 28 percent in
value, the brand value of Evergrande
Real Estate appreciated 88 percent, iQiyi Vatti Alibaba JD.COM Hanting
making it the No. 3 Top Riser, based
# 47 # 97 #2 # 12 # 82
primarily on a surge in stock price
that recognized the potential of the Technology Home Appliances Retail Retail Hotels
company’s holdings in smaller, fast- US$ 2,187 Mil. US$ 352 Mil. US$ 88,623 Mil. US$ 14,579 Mil. US$ 670 Mil.
growth cities, and its strategic shift
from scale to profitability.
64% 54% 53% 50% 50%
With the success of its broad financial
services portfolio, shares of Ping 11 12 13 14 15
An surged, and the brand increased
36 percent in value, the most of any
insurance brand. The online travel Robam Luzhou Laojiao New Oriental Home Inn Moutai
agency Ctrip assembled a broad # 59 # 56 # 43 # 81 #7
assortment of services to focus
Home Appliances Alcohol Education Hotels Alcohol
primarily on Chinese travelers, and
value increased 36 percent, on top of a US$ 1,482 Mil. US$ 1,766 Mil. US$ 2,451 Mil. US$ 686 Mil. US$ 23,175 Mil.
32 percent value increase a year ago.
49% 48% 48% 46% 43%
16 17 18 19 20
Midea Supor Ping An Netease Ctrip

# 26 # 79 #8 # 29 # 34
Home Appliances Home Appliances Insurance Technology Travel Agencies
US$ 3,896 Mil. US$ 732 Mil. US$ 22,363 Mil. US$ 3,558 Mil. US$ 3,063 Mil.
40% 39% 36% 36% 36%

# = 2018 Top 100 Rank
$ = 2018 Brand Value
% = Brand Value Change 2018 vs. 2017 Source: BrandZ™ / Kantar Millward Brown (including data from Bloomberg)
126 127
T E C H N O LO G I CA L I N N OVAT I O N I S R AI S I N G. . .
. . .T H E R E P U TAT I O N O F B R A N D C H I N A .
Overseas Revenue
LENOVO AND
HUAWEI
The consistency indicates how With the introduction of its Mate 10 a majority stake in the TV business
much China has achieved in building smartphone, Huawei intends to move of Japan’s Toshiba. It previously
brands abroad, but also how a Chinese brand into new territory— purchased the North American TV
much opportunity remains as the premium. ZTE also expanded business of Sharp, another Japanese
government assigns a high priority to internationally with its smartphones. brand.
AGAIN LEAD
its Belt and Road overseas expansion
initiative Exports remained strong for the China’s three state-owned airlines—
home appliance category. Midea and China Eastern Airlines, Air China,
Technology is the clearest indicator Hisense increased their overseas and China Southern Airlines—added
of how China expects to increase revenue proportion to 35 percent and more international routes, particularly
its overseas presence. Lenovo, 30 percent, respectively. Midea Group to European destinations, in some
RANKING
which already gains 72 percent of completed its acquisition of Kuka AG, instances from inland Chinese cities.
its revenue from overseas sales, the German robotics company. It also PetroChina, a state-owned oil and gas
purchased Japan’s Fujitsu Client gained a controlling interest in an brand, increased overseas exploration.
Computing Company, and sought Israeli motion control and automation
more international acquisitions. business. Hisense Electric purchased
THE TOP 10 IN OVERSEAS REVENUE

TECHNOLOGY 1 2 3 4 5
SHOWS
POTENTIAL Lenovo Huawei TCL ZTE
China Eastern
FOR CHINA
Airlines
# 39 #6 # 100 # 52 # 35
ABROAD Technology Technology Home Appliances Technology Airlines
72% 55% 46% 42% 38%

Lenovo and Huawei again
led the Top 10 in Overseas
Revenue ranking, which has 6 7 8 9 10
remained consistent both
in brands and categories
for the past couple of years, China Southern
Midea Air China PetroChina Hisense
Airlines
with one oil and gas brand
# 26 # 21 # 16 # 92 # 42
included, and the technology,
Home Appliances Airlines Oil & Gas Home Appliances Airlines
home appliances, and
airlines category represented 35% 33% 32% 30% 26%
with three brands each. # = 2018 Top 100 Rank
% = Revenue % from International Business
130 131
Brand Contribution
LEADERS APPEAR
THE TOP 20 IN BRAND CONTRIBUTION
1 2 3 4 5
FROM 9 OF 21 Mengniu
# 20
Baidu
#5
Tencent
#1
Fortune
# 93
Yili
# 19
CATEGORIES IN
Food & Dairy Technology Technology Food & Dairy Food & Dairy
5 5 5 5 5
6 7 8 9 10
THE RANKING Robam

# 59
Home Appliances
SF Express
# 11
Logistics
Tsingtao Beer
# 60
Alcohol
Sina
# 64
Technology
Moutai
#7
Alcohol
FOOD AND DAIRY, ALCOHOL, 5 5 5 5 5

AND TECHNOLOGY DOMINATE 11 12 13 14 15
Brands that score well The Brand Contribution Top 20 come becomes even more important as the
from nine of the 21 categories examined category becomes more competitive.
in Brand Contribution in the 2018 China BrandZ™ Top 100, Baidu and Tencent Rank No. 2 and No. 3
Lao Feng Xiang Home Inn Supor Bright Dairy New Oriental
are viewed positively by indicating that it is possible to build in Brand Contribution. # 75 # 81 # 79 # 77 # 43

consumers. The BrandZ™ strong brands in all sectors of the Jewelry Retailer Hotels Home Appliances Food & Dairy Education
economy. At the same time, 12 of the Brand Contribution is not about
Brand Contribution metric
assesses the extent to which
Top 20 brands are concentrated in size. Tencent, the No. 1 brand in the 5 5 5 5 5
just three categories: food and dairy, BrandZ™ China Top 100 is in the Brand
brand alone, independent of alcohol, and technology. Contribution Top 20, but so is the hotel
financial or market factors, As changing shopping habits and other

brand Hanting, No 82. And heritage is
not necessarily a factor either, as both
16 17 18 19 20
drives purchasing volume factors have slowed sales value growth Tong Ren Tang, a traditional Chinese
and enables a brand to in food and dairy, penetration and brand medicine established in 1669 is in the
have become even more critical engines Brand Contribution Top 20, along with
command a price premium. for growth. Three food and dairy iQiyi, an online video platform started in
Tong Ren Tang Hanting ChangYu iQiyi National Cellar 1573
brands—Mengniu, Fortune, and Yili— 2010. # 50 # 82 # 68 # 47 # 66
rank in the Brand Contribution Top 5.
Health Care Hotels Alcohol Technology Alcohol
Brand Contribution is about consistency.
When government discouragement
of lavish entertaining and gifting
All but four of the Brand Contribution
Top 20 appeared in last year’s list.
5 5 5 4 4
began depressing alcohol sales Brand Contribution is expressed on a Brand Contribution measures the influence of brand alone on earnings, on a 1-to-5 scale, 5 being highest.
several years ago, brand strength scale of one to five, five being highest. # = 2018 Top 100 Rank Source: BrandZ™ / Kantar Millward Brown (including data from Bloomberg)
enabled manufacturers to sustain (For complete details, please see the
customer loyalty as they developed BrandZ™ Valuation Methodology in the
new strategies. In technology, brand Resources section.)
132 133
STRONG
With a 68 percent increase, education home appliances, which increased A middle group of categories
led the categories in value growth, 50 percent; retail, 47 percent; health experienced strong growth, with
followed by travel agencies with a care, 46 percent; alcohol, 37 percent; brand value increases of 12-to-21
VALUE
value rise of 57 percent. A year ago, and real estate, 28 percent. In each percent. These categories include:
education and travel tied for leadership instance, particular category dynamics insurance, technology, hotels, banks,
with 46 percent increases. This repeat and brand initiatives also influenced the and food and dairy. A combination of
performance illustrates a fundamental solid brand value appreciation. economic factors, consumer attitudes,
cross-category trend—the Chinese and brand initiatives influenced the
consumers’ willingness to spend Retail category growth resulted from value changes. In food and dairy, for
GROWTH
disposable income on products and effective brand building initiatives by example, a shift to premiumization and
services that promise to enhance their Alibaba and JD.com, for example. Value growth in fast moving consumer goods
lives, now and in the future. growth of the alcohol category points (FMCG) e-commerce helped balance
to creative marketing by Baijiu brands lower spending on basics.
Other categories that achieved as they recovered from government
CROSSES
the strongest increases in value restrictions on lavish spending. Alcohol
also benefited from this consumer value growth also reflects how brands
spending trend. These categories, of baijiu, beer, and wine adjusted to
which outperformed the overall value accommodate the growing consumer
rise of the BrandZ™ Top 100, include: preference for premium products.
MOST
CATEGORIES
LOGISTICS BRANDS Many categories contributed to the
exceptional 23 percent value rise of the
ENTER RANKING FOR 2018 BrandZ™ Top 100 Most Valuable
Chinese Brands. Fifteen categories
THE FIRST TIME increased in value compared with
12 a year ago, and the rates of value
growth were larger. Conversely, fewer
categories declined in value and the
declines were smaller. Logistics, a
category added for the first time this
year, also added to the growth rate and
increased the number of categories
examined in the report to 21.
134 135
CATEGORY VALUE CHANGES

Number of Number of 2018 Category 2017 Category Category
Category Brands in Brands in Value Value Value % Change
2018 Top 100 2017 Top 100 (US$ Mil.) ($US Mil.) 2018 vs. 2017
Education 2 2 3,547 2,115 68%
Travel Agencies 3 3 4,577 2,924 57%
Home Appliances 9 8 13,901 9,273 50%
Retail 5 6 109,311 74,152 47%
Health Care 5 3 8,699 5,943 46%
Alcohol 10 11 35,466 25,853 37%
Real Estate 9 9 15,810 12,372 28%
Insurance 6 6 46,416 38,290 21%
Technology 9 10 194,776 163,736 19%
Hotels 2 3 1,356 1,195 13%
Banks 10 10 105,159 93,296 13%
Food & Dairy 6 6 17,120 15,352 12%
Cars 3 4 3,273 3,109 5%

Three categories increased modestly, by more than 10 percent. Jewelry Logistics, the category added to the
by 5 percent or less: cars, airlines, Retailer declined 1 percent. A year ago, BrandZ™ China Top 100 this year, Airlines 4 4 11,631 11,114 5%
and baby care. But certain brands in it suffered a 31 percent decline, the reflects the rapid pace of change in
the car category did exceptionally steepest decline of all the categories. China. Until recently, the courier service
Baby Care 1 1 355 345 3%
well. Geely, which introduced a new, Impacted by low global oil prices, in China was a fragmented business
premium model that it also plans to the oil and gas category held steady, served by delivery men riding bicycles.
export, increased 75 percent in brand dropping 7 percent in value compared The rise of e-commerce increased
Jewelry Retailer 2 3 1,363 1,378 -1%
value, making it one of the Top Risers. with 6 percent drop a year ago. package delivery volume, creating a
But Geely accounts for a relatively space for larger brands to rationalize Apparel 2 3 1,699 1,784 -5%
small share car category value. Three The apparel category is a barometer the category. Five logistics brands
of the four airlines in the BrandZ™ of the Chinese market’s volatility. entered the BrandZ™ ranking this year. Personal Care 2 3 1,471 1,573 -6%
China Top 100 rose in value. Baby care Last year the category increased 35 The largest, SF Express, ranks No. 11 in
includes just one brand, a diaper maker percent in value and moved up near the BrandZ™ China Top 100. Oil & Gas 2 2 20,301 21,916 -7%
that continued to face online price the top of the ranking, after decreasing
competition. But category value rose 3 46 percent a year earlier. This year, The following articles describe in Telecom Providers 3 3 63,147 71,375 -12%
percent, compared with a 25 percent Apparel’s reversal of fortune was less greater detail how brand marketing,
decline a year ago. extreme, but its decline of 5 percent economic forces, consumer attitudes, Logistics 5 - 24,508 - NEW
placed the category toward the bottom and competitive dynamics shaped the
Red indicates negative growth rate
Similarly, of the five categories that in brand value change. One apparel value changes of the 21 categories and No color indicates positive growth rate but below Top 100 growth
declined in value, compared with brand dropped out of the ranking and 100 brands examined in the BrandZ™ Green indicates positive growth rate and above Top 100 growth
seven decliners a year ago, only one the two remaining brands increased, Top 100 Most Valuable Chinese Brands
category—telecom providers—dropped but moderately. report.
136 137
Airlines Alcohol
DRINKING HABITS CHANGE,

BUT CATEGORY VALUE RISES
Brands introduce premium and healthy offerings
TOURISM FUELS Baijiu, China’s traditional clear While the Moutai brand’s performance COMPETITION IN BEER
AIRLINES LIFT
liquor, experienced strong growth, was impressive, it was not unique.
as premiumization boosted alcohol Shares of other baijiu brands, including Domestic beer production rose less
category value, even as changing tastes, Yanghe, Luzhou Laojiao and Wu than 1 percent during the first half of
+5% health concerns, and the popularity
of imports pressured consumption of
Liang Ye also increased. Yanghe
expanded its e-commerce activity, and
2017, according to the National Bureau
of Statistics. Beer was one of four food
Carriers add more international destinations Chinese beer and wine brands. The experienced strong sales for one of its and beverage categories in which
alcohol category rose 37 percent, more moderately priced sub-brands. foreign brands gained share, according
Following a 3 percent decline a year Beijing and Athens with direct service. capital of Sichuan province, and following a 24 percent rise a year ago. Wu Liang Ye continued to develop to Kantar Worldpanel. Out-of-home beer
ago, the airline category rose 5 percent China Eastern Airlines launched direct Chongqing to New York City, which wider distribution over the internet, consumption was especially strong,
in value, a modest rise driven by flights between Xi’an and Prague. China became the ninth North American Baijiu sales have ratcheted upward for and in more physical locations, through reflecting the increase in discretionary
rising consumer wealth, steady travel Southern Airlines announced a direct destination served by Hainan Airlines. several years, since the government’s partnerships with organizations like spending in restaurants, bars, and
increases, route expansion, and lower link between Wuhan, capital of Hubei Owned by HNA Group, Hainan Airlines limits on official gift giving slowed the Alibaba and mass merchant Suning. sporting events.
fuel costs. province, and London. also flies to Los Angeles, Las Vegas, growth of Baijiu luxury brands. Sales
Seattle, San Jose, Chicago, Boston, surged because consumers spent Luzhou Laojiao participated in many However, beer sales value increased
Outbound tourism increased 5.1 percent The state-owned airlines have code Toronto, and Calgary. more on premium drinks and private events and commanded a premium because, although Chinese are
to 62.0 million tourists visits during the share agreements with international entertaining, and brands implemented price. Riding the premiumization trend, consuming less beer, they are moving
first half of 2017, according to the China carriers. American Airlines recently Air travel growth will increase initiatives to expand the market for it successfully marketed its up-scale toward the premium end of the market,
National Tourism Administration, which invested $200 million and entered demand for aircraft, and the Chinese baijiu. National Cellar 1573 brand, which and paying more for the beer they drink.
also reported a 2.4 percent increase in a code sharing agreement China government is determined to have entered the BrandZ™ China Top 100 for Increased interest in health and wellness
inbound tourism to 69.5 million trips. Southern Airlines. Delta invested in Chinese-made jets compete with Based on the prestige of the brand and the first time. Guijing Gongjiu added also impacted beer consumption. And
Domestic tourist trips rose 13.5 percent China Southern several years ago. overseas manufacturers, as part of the relative scarcity of the product, revenue new variations with healthy ingredients Chinese brands felt the growing interest
year-on-year for the first half of 2017. United and Air China have a code Chinese government’s policy to replace of Kweichow Moutai Company Ltd. to appeal to younger and more health- in craft beers, especially among young
sharing arrangement. In addition, the certain products made overseas by increased almost 60 percent during conscious drinkers. And the brand people, as a global trend impacts the
The airlines also benefited from less airlines attempted to control more of the those produced by Chinese companies. the first three quarters of 2017, and its expanded abroad, entering central and Chinese market.
competition from high-speed rail. Air brand experience by increasing direct China introduced its C919 passenger share price reached a record high. That eastern Europe.
transportation revenue increased sales, often through their own apps. jet prototype, but deliveries are not increase elevated Kweichow Moutai
13 percent through the third quarter expected for several years. Purchases Company Ltd. to the world’s highest-
of 2017, according to the China Civil Hainan Airlines, which is not state- from China’s three state-owned airlines valued liquor company, ahead of
Aviation Transportation Authority. owned, added a direct flight to Brussels are expected to drive the rollout of Diageo, the UK-based maker of brands
from Shanghai. It already flies directly the C919. Government plans to add such as Johnny Walker.
China’s three state-owned airlines from Beijing. Hainan Airlines also airports, particularly in inland China,
added direct flights to European introduced daily flights connecting should also drive industry growth.
+37%
destinations. Air China now connects the southern China cities of Chengdu,
AIRLINE BRANDS IN THE BRANDZ™ CHINA TOP 100

Brand Brand Value
Value % Change Year
Brand US$ Mil. Rank 2018 vs. 2017 Company Headquarters Formed Ownership
5,237 21 8% Air China Ltd Beijing 1988 SOE

Air China
China Eastern
3,031 35 3% Shanghai 1988 SOE
China Eastern Airlines
Airlines Corp Ltd
China Southern
2,502 42 4% Guangzhou 1991 SOE
China Southern Airlines
Airlines Co Ltd
Market-
861 74 -5% Hainan Airlines Co Ltd Haikou 1993
Hainan Airlines
Driven Firm
138 139
Alcohol Apparel
KEY BRANDS COUNTER

Responding to competition from
international imports, Tsingtao improved
packaging and offered specialty beers,
such as its Classic 1903 Weissbier. Its
Along with global consumer trends,
business developments also touched
the Chinese market. When it combined
with AB InBev, SAB Miller divested its
At the same time, Chinese consumers
have developed a greater appreciation
for wine and turned increasingly to
imported labels. Anticipating future
CATEGORY VOLATILITY -5%
e-commerce app “Tsingtao Quick- holdings in China Resources Snow demand, market leader ChangYu and Consumers seek quality sports and leisure attire
Buy” was available in over 50 cities. Breweries. Also, shares of Tsingtao rose other Chinese wine producers are
Consistent with China’s Belt and Road on the news that the Japanese Asahi acquiring vineyards abroad in wine- Apparel remained one of China’s in women’s apparel sales and
initiatives, Tsingtao explored overseas Group planned to sell at least part of its producing countries, including France, most volatile categories because was the leading apparel category
opportunities and expanded overseas stake in the Chinese brands. Spain, Chile, and Argentina. of slow sales, excess supply, and on Singles Day. Heilan Home
sales volume 14 percent, year-on-year, pressure from fast fashion imports operated almost 4,400 Heilan-
for the first half of 2017, with a presence WINE RECOVERING And in a monumental project aimed offering affordable on-trend brand stores in China, and opened
in 100 countries. at building brand awareness and designs. The apparel category its first overseas store, Kuala
China ranked No. 7 in wine production educating consumers, ChangYu is declined 5 percent in value after a Lumpur. The opening in Malaysia
A wheat beer introduced by Harbin, worldwide, above South Africa and about to open its 1,000-acre estate 35 percent rise a year ago, which launched the brand’s overseas
Harbin Baipi, grew rapidly, based on below Argentina, according to the with a European-style chateau, and followed a 46 percent decline. strategy to begin in Southeast Asia
popularity with women drinkers and the 2017 projections of the Organisation wine research center. China’s oldest and advance in the Asia-Pacific
drink’s easy pairing with food. Owned by Internationale de la Vigne et du Vin wine producer, ChangYu has become Leisurewear and performance region, before expanding globally.
AB InBev, Harbin sponsored an e-Sports (OIV). But the government’s anti- one of the world’s largest wine brands, attire drove the category as
league in Shanghai. E-sports is a corruption campaign also slowed the because of the size of the domestic wealthier consumers adopted Facing competition from global
growing phenomenon where spectators expansion of China’s wine business. China market, but also because of the the symbols and values of middle brands like Nike and Adidas, Anta
gather to watch competition between brand’s growing export success. class life, including quality clothing enhanced its retail presence with
expert gamers. and concern with personal new, larger stores. The company
health and well-being. Chinese operated over 9,000 Anta brand
ALCOHOL BRANDS IN THE BRANDZ™ CHINA TOP 100 government support of sports also stores, and almost 900 other
drove interest. stores under its higher-end Fila
Brand Brand Value and Descente brands, throughout
Value % Change Year
On Singles Day, China’s enormous China, at the end of the first half of
fall shopping holiday on November 2017. Anta also operated stores on
Kweichow Moutai Co 11, apparel was the most China’s leading online platforms. To
23,175 7 43% Renhuai 1951 SOE purchased product; 62 percent add efficiency to its omnichannel
Moutai
Ltd
of Chinese bought an apparel strategy, Anta developed a new
Wuliangye Yibin Co item, according to a Kantar survey logistics center, expected to be
2,192 46 92% Yibin 1959 SOE conducted by Lightspeed. The operational early in 2018.
Ltd
Wu Liang Ye
survey also found that, across
Jiangsu Yanghe categories, a majority of Singles Anta planned to acquire the
2,030 49 32% Brewery Joint-Stock Suqian 1949 SOE Day online shoppers looked for children’s clothing brand King
Yanghe Co Ltd sales on high-price brands that Kow, expecting the demand for
they had wanted to purchase. children’s apparel to surge with
1,766 56 48% Luzhou Laojiao Co Ltd Luzhou 1950 SOE the end of the one-child policy.
Luzhou Laojiao Heilan Home led in men’s apparel Meanwhile, Anta maintained its
sales on Alibaba’s Tmall site on focus on basketball, running,
Tsingtao Brewery Co Singles Day, followed by Uniqlo,
1,278 60 5% Qingdao 1903 SOE football, cross-training, and tennis.
Ltd
Tsingtao Beer the Japanese brand, which led
Anheuser-Busch InBev Market-

1,261 61 5% Harbin 1900
Harbin Beer
Harbin Beer Ltd Driven Firm
China Resources
APPAREL BRANDS IN THE BRANDZ™ CHINA TOP 100
1,190 62 7% Beijing 1994 SOE
Snow Breweries Brand
Snow Beer Brand Value
Value % Change Year
1,021 66 NEW Luzhou Laojiao Co Ltd Luzhou 1573 SOE Brand US$ Mil. Rank 2018 vs. 2017 Company Headquarters Formed Ownership
National Cellar 1573
Market-
920 70 6% Heilan Home Co Ltd Jiangyin 2002
Yantai Changyu Market- Heilan Home
Driven Firms
951 68 -10% Yantai 1892
ChangYu
Pioneer Wine Co Ltd Driven Firm
ANTA Sports Market-
778 78 16% Jinjiang 1991
Anhui Gujing Distillery Anta
Products Ltd Driven Firms
604 84 13% Bozhou 1959 SOE
Gujing Gong Jiu
Co Ltd
140 141
Baby Care Banks
ECONOMIC EXPANSION
DRIVES BANK REBOUND
Brands also build presence overseas
INCREASING BIRTH
Banks enjoyed a better year, rising 13 to improve customer service and
percent after declining 6 percent a year strengthen their competitiveness,
ago, when all but two bank brands in especially against fintech challengers.
RATE PROPELS
the BrandZ™ Top 100 declined in value. China’s four largest banks, all state-
In this year’s BrandZ™ China Top 100 owned, reported strong profits for
report, every bank brand except one the first three quarters of 2017, driven
increased in value. primarily by strong growth in net interest
DIAPER SALES
income resulting from improved margins
Several factors prompted the and strong economic growth. These
+3%
rebound, including demand for home banks—Industrial and Commercial Bank
mortgages and improved commercial of China (ICBC), China Construction
Low penetration magnifies the opportunity loan performance as key industries Bank, Agricultural Bank of China, and
strengthened. In addition, many state- Bank of China—funded government
The baby care category, which The expansion of middle class, and the owned banks implemented initiatives initiatives to grow the real economy.
includes one brand, the diaper maker low penetration of disposable diapers,
Anerle, increased 3 percent, after enhances the category’s potential.
a decline of 25 percent a year ago In addition, purchasing frequency is
when e-commerce competition from high for diapers. Families purchase
international brands impacted sales. diapers more than eight times per year,
somewhat less than they purchase milk,
Since then, import tariffs have slowed according to Kantar Worldpanel, which
market gains from international brands, also found that, after infant formula, the
and Anerle has continued to gain from diapers sector is the most brand-loyal of
the rescinding of China’s one-child fast moving consumer goods (FMCG).
policy. Annual births increased 11.5
percent to around 18.5 million in 2016, The great potential for sales of
according to Chinese government disposable diapers attracted both
figures, and around 45 percent of the
births were to parents who already had
multinationals and local brands.
Japanese brands are especially strong +13%
one child. in China. Brands competed for market
share by introducing differentiating
features, such as greater absorbency.
BABY CARE BRANDS IN THE BRANDZ™ CHINA TOP 100

Brand Brand Value
Value % Change Year
Hengan International Market-

355 96 3% Jinjiang 1985
Anerle
Group Co Ltd Driven Firm
142 143
Banks Cars
BRANDS LAUNCH
PREMIUM MODELS
AND LOOK ABROAD
ICBC, for example, financed China’s largest banks also increased The only market-driven bank in
infrastructure construction, poverty their overseas presence to serve the the BrandZ™ China Top 100, China
+5%
reduction, and small businesses. In financial services needs of Chinese Minsheng Bank, declined in value, in
a collaboration aimed at solving the companies expanding abroad to part because of lower income from
problem of excess housing inventory, implement the government’s Belt and fees and deposits. A year ago, China
several real estate companies worked Road initiatives for exerting Chinese soft Minsheng Bank was one of only two
with major banks, such as Bank of China, power. banks in the BrandZ™ China Top 100 to Government continues incentives for clean energy vehicles
China Construction Bank, and China rise in value.
CITIC to develop quality rental housing.
The car category expanded in value, but consumers often looked for a second extensive distribution channels and
more moderately, growing 5 percent car with more luxury. For consumers in local knowledge to more efficiently
BANK BRANDS IN THE BRANDZ™ CHINA TOP 100 compared with 20 percent a year ago,
and 38 percent in the prior year. Car
lower tier cities, trading up sometimes
meant buying a car rather than a two-
market to consumers in lower tier cities,
where demand for budget vehicles was
Brand sales continued to increase, but at a wheel vehicle. greatest.
Brand Value
Value % Change Year slower rate. At the same time, Chinese
Brand US$ Mil. Rank 2018 vs. 2017 Company Headquarters Formed Ownership car brands broadened their traditional Even as Chinese carmakers introduced Passenger car sales increased 1.5
appeal, launching premium models in premium models, they depended on percent to 24.2 million vehicles in
Industrial &
China and planning to introduce them the value-for-money vehicles that drove 2017, the lowest growth in a decade,
37,213 4 18% Commercial Bank of Beijing 1984 SOE
ICBC China Ltd overseas. most of their volume. By improving according to the China Association of
the quality of these cars, Chinese Automobile Manufacturers. Chinese car
China Construction By introducing higher-end sub-brands brands competed more effectively with brands produced over 10 million cars, a
20,120 9 9% Beijing 1954 SOE
China Construction Bank
Bank Corp Chinese carmakers responded to the Korean, French, and other international threshold that they surpassed last year
premiumization trend that crossed many carmakers selling entry-level vehicles. for the first time. The most valuable
Agricultural Bank of categories and reflected middle class Chinese brands also leveraged their Chinese brands—BYD, Geely, and Great
16,158 10 9% Beijing 1951 SOE Wall—contributed to this momentum
China Ltd aspirations, which car buyers expressed
Agricultural Bank of China
in various ways. In the coastal cities and also attempted to differentiate and
where car ownership is high, wealthy establish an international presence.
13,143 14 12% Bank of China Ltd Beijing 1912 SOE
Bank of China
China Merchants Bank

8,347 18 27% Shenzhen 1987 SOE
China Merchants Bank
Co Ltd
Bank of
4,202 25 0% Communications Co Shanghai 1908 SOE
Bank of Communications Ltd
China Minsheng Market-

3,213 31 -8% Beijing 1996
China Minsheng Bank
Banking Corp Ltd Driven Firm
China CITIC Bank Corp

1,661 57 9% Beijing 1987 SOE
China CITIC Bank
Ltd
711 80 11% Industrial Bank Co Ltd Fuzhou 1988 SOE

Industrial Bank
China Everbright Bank

391 91 9% Beijing 1992 SOE
China Everbright Bank
Co Ltd
144 145
Cars Education
CATEGORY AGAIN LEADS

Geely sold over one million vehicles.
It launched its new brand, Lynk & Co,
personal and commercial use. It supplies
industry and governments worldwide,
IN VALUE APPRECIATION +68%
which moves Geely Automobile up the
hierarchy, away from value-for-money
and manufactures in Asia, Europe, and
South America, with plans to open
China’s focus on testing and achievement powers growth
cars and more into direct competition an electric truck plant in Canada. The
with overseas brands such as Ford and brand is especially focused on electric Education again topped the list focuses on language education,
Toyota. The Lynk & Co brand, developed public transportation and is involved in of categories in value growth, especially English, along with test
with Volvo, which Geely acquired in several monorail projects in China and increasing 68 percent, after a preparation for admission to schools
2010, emphasizes digital connectivity. overseas. 46 percent rise a year ago. A in China and other countries,
combination of factors powered particularly the US. It also offers
Similarly, Great Wall, which exceeded The Chinese government’s desire to the growth of the education vocational training, and it operates
the one-million-cars-sold threshold a reduce pollution and traffic congestion category in China. They include an online site called Koolearn.
year ago, began selling a new brand. continued to shape the car category the determination of Chinese to
Known for its success with SUVs, Great as incentives attracted customers to succeed and have their children At Tal Education Group, which
Wall launched a premium SUV called electric cars. Car buyers also faced succeed, and the reality of controls the Xueersi brand,
Wey. Great Wall announced discussions difficulty obtaining licenses for gas- educational success in China, enrollment reached 3.2 million, an
with BMW about producing the Mini or diesel-powered vehicles in some which requires navigating an increase of 86.5 percent during
brand in China. And Great Wall plans to cities. In addition, the government elaborate testing system. the first six months of fiscal 2018,
introduce its Wey SUV to North America organizations were encouraged to ending August 31, 2017, and net
in 2021. buy new-energy vehicles for their The end of the one-child policy revenues increased 66.8 percent
fleets. China plans to build over 12,000 and increased competition for year-on-year. The company
BYD accounts for almost one-third charging stations by 2020. And banks university admission also help operated 575 learning centers in
of electronic vehicle sales in China, introduced favorable rates for car ensure the continued growth of 36 cities. The success of online
according to the China Passenger Car loans. New government regulations are the education category and its two education accelerated growth, with
Association. Having started as a battery expected to phase out gas and diesel leading brands, New Oriental and revenue from Xueersi.com rising
manufacturer, BYD is now a major engines. Xueersi. New Oriental expects over 90 percent between 2016 and
manufacturer of electric vehicles for the market for K-to-12 after-school 2017. The brand continues to add
tutoring to expand by a 14 percent course offerings for grades K- to-12,
compounded annual growth rate along with both small-class tutoring
CAR BRANDS IN THE BRANDZ™ CHINA TOP 100 (CAGR) between 2015 and 2020.
Meanwhile, the number of babies
services and premium-price private
tutoring.
Brand born annually in China increased
Brand Value
Value Year 16.6 percent between 2009 and To address a perceived weakness
% Change
Brand US$ Mil. Rank 2018 vs. 2017 Company Headquarters Formed Ownership 2016, according to Xueersi. In in Chinese education—the focus on
Beijing, the births increased over rote learning—Xueersi introduced
Market- 42.1 percent during the same a new English three-part language
1,861 54 4% BYD Co Ltd Shenzhen 1995
BYD
Driven Firm period. program in which classroom time is
spent developing critical thinking
Market- New Oriental, the brand of ability. Outside the classroom, the
936 69 19% Great Wall Motor Co Ltd Baoding 1984
Great Wall
Driven Firm the New Oriental Education & program expects students to study
Technology Group, had almost five vocabulary and grammar prior to
Geely Automobile Market- million enrollments and operated class, and to sharpen speaking skills
476 90 75% Hangzhou 1986 around 900 learning centers as online by interacting with teachers
Geely
Holdings Ltd Driven Firm
of August 31, 2017. The brand from North America.
EDUCATION BRANDS IN THE BRANDZ™ CHINA TOP 100

Brand Brand Value
Value % Change Year
New Oriental
Market-
2,451 43 48% Education & Beijing 1993
Driven Firm
New Oriental Technology Group Inc
Market-
1,095 65 139% TAL Education Group Beijing 2003
Xueersi
Driven Firm
146 147
A SC R EEN I S N E V ER FA R AWAY,
A N Y P L AC E , A N Y TI M E O F DAY.
Food & Dairy
STRONGER GROWTH
RESUMES AFTER TWO
MODERATE YEARS +12%
Premium prices raise sales value
The food and dairy category increased basic goods; and faster for products,
12 percent in brand value, following such as yoghurt and bottled water,
two years of moderate 3 percent and 2 which offer perceived lifestyle or health
percent growth. Category sales volume benefits.
remained flat or down overall during the Loyalty remained strong in categories milk supply, shares in the companies development with Danone Group
first half of 2017, but it picked up later in Health reasons influenced the like milk, where consumers tend to stick reached all-time highs. of France and Denmark’s Arla
the year, and people turned to higher- consumption of milk and other dairy with the same brand. Consumers chose Foods. Along with Fosun, a Chinese
priced premium products, driving up the products, which rose, in part, because liquid milk less based on provenance— Both companies held talks with conglomerate, the dairy company
value of sales. of the government’s desire to raise the Chinese or international—and more on Australia’s largest dairy producer, Sanyuan bid to purchase St. Hubert,
Chinese daily intake of calcium and whether it was sourced from high quality Murray Goulburn Cooperative. Yili a French margarine brand. Bright has
Premiumization in the food and dairy protein. Dairy experienced particularly grasslands. As Yili and Mengniu looked also bid to purchase the US yogurt purchased several overseas brands,
category reflected a fundamental shift heavy price competition, with leadership abroad for acquisitions to expand their maker Stonyfield. Mengniu continued including a premium yogurt made in
in consumer spending. As middle-class revolving among three brands—Yili, to collaborate on research and Bulgaria.
consumers spent less on basic needs, Meningu, and Bright.
including food, they spent more on
discretionary items like entertainment, In these competitive circumstances,
FOOD & DAIRY BRANDS IN THE BRANDZ™ CHINA TOP 100
reallocating some of their food budget penetration, the percentage of Brand
from groceries to restaurants or home households buying a brand during a Brand Value
Value % Change Year
delivery. year, was the most important contributor Brand US$ Mil. Rank 2018 vs. 2017 Company Headquarters Formed Ownership
to greater market share and leadership,
In addition, consumers spent more according to Kantar Worldpanel. The Inner Mongolia Yili
7,637 19 21% Hohhot 1993 SOE
willingly on products that promised penetration of Mengniu in milk was 5.5 Industrial Group Co Ltd
Yili
healthier ingredients or offered times greater than the top 20 brands
convenience and other lifestyle benefits. selling milk, while the difference in China Mengniu Dairy
Brands innovated to encourage purchase frequency is almost the 5,364 20 7% Hohhot 1999 SOE
Mengniu
Co Ltd
spending. Beverage brands, for same. Boosting penetration required a
example, introduced new products, combination of distinctive messaging, Henan Shuanghui
Market-
such as functional drinks. An analysis the right products, and omnichannel 2,593 40 9% Investment & Luohe 1969
Driven Firm
by Kantar Worldpanel found that the execution. To increase penetration of Shuanghui Development Co Ltd
growth of consumer categories in China its yogurt, Yili introduced new premium Bright Dairy & Food
is moving at two speeds: slower for products supported by TV advertising 798 77 -8% Shanghai 1996 SOE
Co Ltd
and digital marketing. Bright Dairy
China Agri-Industries
382 93 3% Beijing 1993 SOE
Fortune
Holdings Ltd
Market-
346 99 -13% Sanquan Food Co Ltd Zhengzhou 1993
Sanquan
Driven Firm
150 151
Healthcare Home Appliances
VALUE RISES
ROBUSTLY ON
WELLNESS TREND +46% CONSUMERS SPEND MORE
Newcomer brands offer vitamins, dietary supplements
Driven by middle class consumer properties that control bleeding,
ON NEW LIFESTYLE FEATURES
concern with health and wellness, and
government healthcare policy reforms,
which is the benefit Yunnan Baiyao is
historically known for.
Trend impacts both large and small appliances
healthcare became one of the fastest-
rising categories in the BrandZ™ China Tong Ren Tang, the traditional Chinese The home appliance category ranked in the BrandZ™ Top 10 brands China’s unusually hot summer partly
Top 100, increasing 46 percent in value, medicine (TCM) brand established in surged 50 percent in value, following by Overseas Revenue. Exports accounts for Gree’s performance, as it
after an increase of only 3 percent a 1669, leveraged its long heritage to a 9 percent increase a year ago. remained strong, rising 7.7 percent in is China’s leading air conditioner maker.
year ago. introduce a line of TCM cosmetics. Several important industry changes value through the first half of the year, But the brand continued to broaden
CR Sanjiu, a market leader in several drove this growth, according to the according to official statistics reported its range to avoid dependence on air
Yunnan Baiyao rose 18 percent, while over-the-counter pharmacy sectors, China Household Electric Appliance by CHEAA. conditioners alone. Gree promoted
Tong Ren Tang and CR Sanjiu increased entered a joint venture with Sanofi, a Association (CHEAA), including: its smartphone and also entered into
more modestly. However, two of the global health solutions provider, to focus urbanization, premiumization, Five appliance brands ranked in a partnership with an electric vehicle
newcomer brands that entered the on OTC pediatric and gynecological development of smart appliances, and the 2018 BrandZ™ China Top 20 maker, Zhuhai Yinlong. Expanding
ranking for the first time this year came products. operational improvements focused on Risers, brands that increased most its presence in the US, Gree opened
from the healthcare category. Dong driving consumption by being more in brand value year-on-year. Gree a second American showroom, in
EE Jiao makes and markets traditional Dong EE Jiao offers health and beauty customer centric. rose 78 percent, making it the fourth Chicago.
Chinese medicines. By-Health products from a gelatin contained fastest-rising brand in value across all
concentrates on vitamins and other in donkey skin. By-Health sources Online sales increased over 50 percent categories in the BrandZ™ Top 100. The
dietary supplements. raw materials globally for its organic for several appliance sectors. Global other appliance Top Risers are: Vatti, up
products. Both brands benefited brand building also contributed to the 54 percent; Robam, 49 percent; Midea,
Yunnan Baiyao continued to offer a from recent Chinese government laws category value rise. Three appliance 40 percent; and Supor, 39 percent.
wide range of medicines and personal designed to make the products safer. brands—TCL, Midea, and Hisense—
care products. Its toothpaste is the No. And both brands have global ambitions.
1 Chinese toothpaste brand. It features
HEALTHCARE BRANDS IN THE BRANDZ™ CHINA TOP 100

Brand Brand Value
Value % Change Year
+50%
Yunnan Baiyao Group

3,621 28 18% Kunming 1902 SOE
Yunnan Baiyao
Co Ltd
Beijing Tongrentang
1,983 50 4% Beijing 1669 SOE
Tong Ren Tang
Co Ltd
Dong E,
1,493 58 NEW Dong-E-E-Jiao Co Ltd 1952 SOE
Dong E E Jiao
Liaochen
China Resources
1,010 67 5% Sanjiu Medical & Shenzhen 1999 SOE
CR Sanjiu Pharmaceutical Co Ltd
Market-
592 86 NEW By-health Co Ltd Zhuhai 1995
By-Health
Driven Firm
152 153
Home Appliances Hotels
Vatti, a maker of ovens and stove-top intelligence and robotics. The company Hisense became an official sponsor of COMPETITION DRIVES
GREATER INNOVATION
cooking ranges, shifted toward the completed acquisition of a 95 percent the 2018 FIFA World Cup. The brand
premium end of the market, introducing stake in Kuka AG, the German robotics has also sponsored NASCAR racing in
+13%
new features, such as voice control, company, and a controlling interest in the US and the Australian Open tennis
to some of its products. The brand Servotronix, an Israeli motion control matches. TCL continued its aggressive
also expanded its marketing program and automation business. Midea expansion in the US with an expanded
to communicate a younger, on-trend recently opened several research range of smart TVs. Haier, Midea, Gree, Brands focus on expansion and experience
image across media channels, and in and development centers worldwide, Hisense, and TCL all ranked in the Top
its virtual and physical stores. A maker including one in Silicon Valley. And 10 large home appliance brands in sales
Despite intense competition from multinationals focused mostly the inventory as office space. Home Inn
of small appliances, Robam added it partnered with real estate brand on Tmall during China’s Singles Day
both local and multinational brands, middle- and upper-end hotel market in planned a joint venture with UrWork, a
design refinements to its kitchen Country Garden to pursue smart home shopping festival in November.
the hotels category continued to rise major cities, and the Chinese brands shared office space provider, to launch
products, opened an innovation center opportunities. Haier integrated its
steadily in value, expanding 13 percent rapidly opened budget locations office space locations. To trial the
in California, and increased its presence acquisition of GE Appliances, making In addition to these brands, Flyco, a
after recent annual increases of 8 throughout China. idea, the brands plan to begin with 50
in China’s lower tier cities, adding more structural changes to add speed and maker of small electronic appliances
percent and 11 percent. One hotel brand hotel renovations in six cities: Beijing,
stores. flexibility, and investing in smart home appeared in the BrandZ™ China Top 100
dropped from the ranking, or the value Today, the global brands are expanding Shanghai, Wuhan, Xi’an, Chengdu, and
innovation. for the first time. Flyco is well known
rise would have been greater. their footprint throughout China, in the Qingdao.
Midea has been expanding from its for marketing a popular electric razor
middle and budget segments of the
core focus on consumer appliances Supor experienced e-commerce at a premium price. The stock market
The two remaining brands, Home Inn market. At the same time, government
and air conditioning systems to success, particularly in lower tier cities. rewarded its commercial success.
and Hanting, rose 46 percent and 50 discouragement of extravagance has
other technology, including artificial
percent, respectively. Both brands impacted high-end accommodations;
primarily serve the budget market with business travel has slowed; and
a consistent standard of comfort and sharing economy options, like Airbnb,
HOME APPLIANCE BRANDS IN THE BRANDZ™ CHINA TOP 100 service at an affordable price, for both have added competition.
leisure and business travelers.
Brand Brand Value The middle and budget Chinese brand
Value % Change Year Home Inn operated slightly more hotels, which had grown business
Brand US$ Mil. Rank 2018 vs. 2017 Company Headquarters Formed Ownership locations, 2,385, but both brands through rapid expansion, are shifting
have grown quickly and enjoy above attention to enhancing their existing
Market-
3,896 26 40% Midea Group Co Ltd Shunde 1968 average brand awareness in the budget locations with improved guest services.
Driven Firm
Midea hotel sector. Hanting has expanded These initiatives correspond with the
Gree Electric somewhat more aggressively, ending premiumization trend that crosses
Market-
3,139 32 78% Appliances Inc of Zhuhai 1991 2017 with 78 percent more locations many categories. Some Chinese
Driven Firm
Gree Zhuhai that it had only four years earlier. And brands are adding more personalized
the brand has remodeled many of its services. Others are collaborating with
Market- locations and introduced a redesigned decorator brands that furnish the hotel
3,068 33 32% Qingdao Haier Co Ltd Qingdao 1984
Haier
Driven Firms logo. rooms. In some instances, the hotel
guest can scan a code and purchase
Hangzhou Robam Market- These leading Chinese hotel brands are an item.
1,482 59 49% Hangzhou 1979
Robam
Appliances Co Ltd Driven Firm expanding aggressively while facing
increasing pressure from multinationals. In another response to heightened
Zhejiang Supor Market- Until recently, the Chinese market competition, some budget hotels
732 79 39% Hangzhou 1994
Supor
Cookware Co Ltd Driven Firm was more neatly bifurcated. The began repurposing their existing room
Shanghai Flyco
Market-
537 88 NEW Electrical Appliance Shanghai 1999
Driven Firm
Flyco Co Ltd HOTEL BRANDS IN THE BRANDZ™ CHINA TOP 100
Hisense Kelon Electrical
383 92 2% Holdings Co Ltd and Qingdao 1969 SOE Brand Brand Value
Hisense Hisense Electric Co Ltd Value % Change Year
Market-
352 97 54% Vatti Corp Ltd Zhongshan 1992
Driven Firm BTG Hotels Group Co
Vatti 686 81 46% Shanghai 2002 SOE
Home Inn
Ltd
Market-
311 100 14% TCL Corp Huizhou 1981
Driven Firm China Lodging Group Market-
TCL 670 82 50% Kunshan 2005
Hanting
Ltd Driven Firm
154 155
Insurance
PRODUCT SALES,
INVESTMENTS PROMPT
INSURANCE REBOUND +21%
Low category penetration promises great potential
Insurance rebounded, increasing Benefiting from its investment in
21 percent in value after declining transforming to an internet-based
6 percent a year ago. The decline company, New China Life increased
resulted from regulatory intervention to 27 percent in value, making it second-
stabilize the insurance market against highest riser in the insurance category.
speculation, which had driven a 44 CPIC, which rose 23 percent in
percent increase in category value the value, announced that it would alter
prior year. its investment strategy to serve the
national agenda by channeling funds to
Following this bumpy history, the utilities and infrastructure projects.
insurance category has evolved, with
growing understanding and acceptance China Life collaborated with Baidu to
of the category among middle class launch an internet investment fund.
Chinese who increasingly purchase China Life also planned to increase its
insurance for protection rather than
investment. Meanwhile, the relatively
overseas engagement and invest in
projects intended to help reform the
INSURANCE BRANDS IN THE BRANDZ™ CHINA TOP 100
low penetration of insurance in China, State-Owned Enterprises and reduce Brand
and the expansion of online access, their debt load. China Life and CPIC Brand Value
Value % Change Year
continued to drive strong category also rank in the Insurance Top 10 in the Brand US$ Mil. Rank 2018 vs. 2017 Company Headquarters Formed Ownership
growth. BrandZ™ Global Top 100 report.
Ping An Insurance Market-
22,363 8 36% Shenzhen 1988
Strong product sales and improved China’s aging population and the Group Co of China Ltd Driven Firm
Ping An
investment results boosted the profits need for more extensive national
of China’s publicly listed insurance health coverage should open growth China Life Insurance
companies. Shares of Ping An surged, possibilities for insurance products. 13,665 13 4% Beijing 2003 SOE
China Life
Co Ltd
and the brand increased 36 percent in Similarly, the sharing economy is
value, the most of any insurance brand. expected to require new insurance China Pacific Insurance Market-
Ping An ranks the No. 1 most valuable products. More consumers share 5,195 22 23% Shanghai 1991
CPIC
insurance company in the world, in the bicycles, for example, which raises
BrandZ™ Top 100 Most Valuable Global potential liability coverage issues. The People’s
Brands report. Although government regulations may 2,523 41 7% Insurance Co Group Beijing 1949 SOE
moderate the growth rate of insurance PICC of China Ltd
A recent investment in HSBC made in China, growth potential has attracted
New China Life
Ping An the global bank’s second- competition from outside the insurance 2,289 45 27% Beijing 1996 SOE
Insurance Co Ltd
largest shareholder. Ping An owns an category, particularly among major New China Life
online healthcare service and operates internet brands, such as Alibaba and China Taiping
clinics throughout China as part of its Tencent. 382 94 22% Insurance Holdings Hongkong 1929 SOE
broad positioning as a financial services China Taiping Co Ltd
company. And it is deeply committed to
internet financial technology.
156 157
Jewelry Retailer Logistics
CATEGORY DEBUTS
IN BRANDZ™ REPORT
Rise of e-commerce inspires rapid
growth and new partnerships
JEWELRY SALES
The logistics category appears for the today’s No. 1 brand, the internet and YTO Express, Yunda Express, and ZTO
first time in the BrandZ™ China Top e-commerce giant Tencent, ranked Express, which rank No. 36, 37, and 38,
RECOVER WITH
100 report. Internet brands, especially eighth, and today’s No. 2 brand, internet respectively. STO Express ranks No. 55.
the e-commerce players, inspired the and e-commerce giant Alibaba, did not At the time ZTO went public on the New
rapid expansion of the category. As appear in the ranking. York Stock Exchange, in October 2016,
logistics brands were publicly listed, it was the second largest US IPO of a
DEMAND FOR GOLD

they became eligible for inclusion in the The largest of this year’s logistics Chinese company, after Alibaba.
BrandZ™ China ranking. newcomers, SF Express, was the last
-1%
of the delivery services to go public. It
The inclusion of the logistics category ranks No. 11 in the BrandZ™ China Top
Young people influence product choice and shopping venue in the China BrandZ™ Top 100 reflects 100, just below Agricultural Bank of
how rapidly China’s economy has China and above JD.com. The other
The Jewelry Retailer category began Gold Council. And people found more in popularity in Tier 1 cities, according transformed. When the BrandZ™ logistics brands in the ranking are:
to recover, declining only 1 percent in occasions for giving gifts. to research conducted by Kantar TNS China report first appeared, in 2011,
value compared with a 31 percent drop for the World Gold Council. Young
a year ago, as China’s demand for gold Gold jewelry sales spiked early in 2017, consumers influenced product range,
strengthened, according to the World as a traditional gift for the Chinese with a desire for more personalization
Gold Council. New Year. Also, on the lunar calendar, and other precious metals and stones.
the Year of the Rooster had an added
One jewelry brand dropped from the month inserted around June. Spring, a The preferred shopping venue shifted
BrandZ™ China Top 100, but the two season of growth and new beginnings, as well, with young people finding
remaining brands, Lao Feng Xiang and is a lucky time for weddings in traditional inspiration both online and in physical
Eastern Gold Jade, increased 14 percent Chinese culture. An extra month stores. As in other country markets,
and 28 percent, respectively. doubles the luck. And the birthdays young people are expanding the
became more popular for giving jewelry definition of luxury. Some find travel
Two significant trends—an increase in as a gift, too. or other experience, or an expensive
young jewelry consumers and online
transactions—influenced category Gold jewelry continued to dominate,
smartphone more desirable than an
article of gold jewelry. NEW
sales growth, according to the World but diamond and platinum increased
JEWELRY RETAILER BRANDS IN THE BRANDZ™ CHINA TOP 100

Brand Brand Value
Value % Change Year
Lao Feng Xiang Co

841 75 14% Shanghai 1848 SOE
Lao Feng Xiang
Ltd
Eastern Gold Jade Market-

522 89 28% Shenzhen 1993
Eastern Gold Jade
Co Ltd Driven Firm
158 159
Logistics Oil & Gas
PRICE, CAPACITY
These brands organized the package international business. To extend
delivery business in China, which had beyond the 51 countries and regions
been fragmented and traditionally that it now reaches, SF Express plans to
ISSUES ERODE
the domain of individual couriers. The partner with UPS.
industry growth forecast is positive
because e-commerce is expanding The brands are automating to improve
CATEGORY VALUE
into lower tier cities and international efficiency and ease the margin pressure
markets, as Chinese companies expand that results from running a labor-
abroad, sometimes to support the Belt intensive business in a competitive
and Road initiatives of other Chinese
companies.
industry where raising prices is difficult.
Some brands raised prices around -7%
To handle an anticipated surge in
Singles Day, the Chinese shopping
holiday in November, when couriers
Prospects improve later in the year
overseas business, the logistics brands handled over 330 million packages in
are developing fleets of aircraft and a one day, according to China’s Post The 7 percent decline in the oil Sinopec, which primarily focuses
freighters. Some of the brands are Bureau. and gas category followed two on refining, experienced rising
also entering joint ventures to facilitate successive annual declines of 6 demand for petroleum products
percent and 15 percent, as the global like gasoline and kerosene.
crude oil price slump continued to PetroChina, a major producer of
LOGISTICS BRANDS IN THE BRANDZ™ CHINA TOP 100 pressure the category, which last natural gas, benefited from the
rose in value in 2015, by 4 percent. government’s efforts to abate air
Brand Brand Value pollution with limits on burning
Value % Change Year In addition, Sinopec and PetroChina, coal. Demand for liquid natural
Brand US$ Mil. Rank 2018 vs. 2017 Company Headquarters Formed Ownership the two state-owned oil companies gas (LNG) increased dramatically.
ranked in the BrandZ™ China Top
Market- 100, contended with overcapacity Prospects for the oil and gas State
14,650 11 NEW SF Express Co Ltd Shenzhen 1993
SF Express
Driven Firm and competition from independent Owned Enterprises (SOEs) look
refineries that have appeared with promising, as the global price of
YTO Express Group Market- liberalization of the oil and gas sector. crude oil strengthens. However,
2,844 36 NEW Shanghai 2000
YTO Express
Co Ltd Driven Firm based on circumstances early
The state-owned companies in the year, Sinopec declined 14
Market- improved their financial performance percent in value, and PetroChina
2,603 37 NEW Yunda Holding Co Ltd Shanghai 1999
Yunda Express
Driven Firm late in 2017, however, because of increased only 1 percent. Only
a combination of rising crude oil one other category, telecom
ZTO Express Cayman Market- prices, better cost controls, and providers, declined in value
2,601 38 NEW Shanghai 2002
Inc Driven Firm rising domestic consumption in a more than oil and gas in the 2018
ZTO Express
strengthening economy. BrandZ™ China Top 100.
Market-
1,810 55 NEW STO Express Co Ltd Shanghai 1993
STO Express
Driven Firm

OIL & GAS BRANDS IN THE BRANDZ™ CHINA TOP 100
Brand Brand Value
Value % Change Year
China Petroleum &

10,667 15 -14% Beijing 1998 SOE
Sinopec
Chemical Corp
9,634 16 1% PetroChina Co Ltd Beijing 1999 SOE

Petrochina
160 161
Personal Care Real Estate
RATE OF GROWTH
SLOWS IN VOLATILE STRONG GROWTH
PRODUCT CATEGORY -6%
RESUMES,BUT WITH
Politics and premiumization impact sales
Geopolitics and premiumization the first time in four years, according to
REGULATIONS
impacted the value change of a volatile Kantar Worldpanel, primarily because of Brands match scale with profitability
category. After experiencing no change political tensions. After China objected
in value a year ago, personal care to Korea’s deployment of the defensive Chinese government initiatives to supply to stabilize the market. Generally,
declined 6 percent in the 2018 BrandZ™ THAAD missile system, fewer Chinese increase affordable housing and real estate brands planned to pursue
China Top 100 ranking. Two years ago, consumers purchased South Korean stimulate the economy drove a profitable growth but assume less debt.
the category led the ranking in value products, including the high-end strong real estate category recovery. They also expected to diversify from
growth with a rise of 61 percent. personal care brands preferred by But government attempts to curtail real estate into related services, such as
Chinese. speculation slowed housing sales in senior care and tourism facilities.
The premiumization and trading-up certain cities and depressed the stock
trends continued to rouse consumer Great opportunity remains across the prices of some real estate brands. Evergrande Real Estate, the most
interest in skin care and the makeup, personal care category, particularly in Consequently, the real estate category valuable real estate brand, framed this
benefiting both Chinese and makeup, where the penetration level increased 28 percent in value, but the change as a strategic shift from scale
multinational brands. Consumers is under 50 percent, compared with value changes of the nine real estate to scale plus profitability. The brand
not only purchased more expensive, penetration levels over 80 percent in brands in the BrandZ™ China Top 100 also diversified into financial services
higher-end merchandise, they chose Japan and Korea, according to Kantar varied widely, from an 88 percent rise to and tourism. In a move designed
brands that offered elaborate, multi-step Worldpanel. In contrast, toothpaste a 12 percent decline. to fill available space it linked with
skincare systems. penetration in China is close to 100 McDonald’s, which will accelerate its
percent. Real estate brands adjusted in expansion deeper into China by locating
Between 2014 and 2016, China’s market different ways to this new reality restaurants on Evergrande property.
for make-up grew 25 percent and for A toothpaste brand dropped out of the where urbanization continues to create Evergrande Real Estate led the category
skin care 29 percent, according to BrandZ™ Top 100 this year, which slowed substantial need for housing in major in value appreciation, 88 percent, based
Kantar TNS. Factors driving the growth personal care category growth. The cities, but government moderates on significant profit growth.
included an increase in the number of two remaining brands are Herborist,
steps in the average beauty regime. a cosmetic known for its natural
Kantar TNS Korea reported that the ingredients, which rose 13 percent, and
+28%
most affluent Chinese women, age 20 to Dabao, a maker of herbal cosmetics,
39 in Tier 1-to-3 cities, spend an average which rose 9 percent. Both brands
of $1,350 on cosmetics annually. were active online, where an increasing
proportion of personal care purchases
Although personal care remained strong happen.
in 2017, the rate of growth slowed for
PERSONAL CARE BRANDS IN THE BRANDZ™ CHINA TOP 100

Brand Brand Value
Value % Change Year
Market-
913 71 9% Johnson & Johnson Beijing 1999
Dabao
Driven Firm
Shanghai Jahwa Market-

557 87 13% Shanghai 1998
Herborist
United Co Ltd Driven Firm
162 163
Real Estate Retail
Government regulations to slow the of high-end hotels with a major of

flow of capital overseas impacted the acquisition of hotels from Dalian Wanda
marketing of a Malaysia project, being Group. R&F also purchased office
developed by a consortium of real towers in London.
estate developers including China’s
Country Garden. However, the brand After strong sales early in the year,
experienced profit growth based on Vanke experienced a slowdown and
strong demand for its housing. Country government initiatives moderated
Garden increased 32 percent in brand market expansion. Vanke explored
value. new growth possibilities, including
developing urban transportation
Longfor increased 29 percent in brand systems, such as monorails. State-owed
value because of sales in higher tier Shenzhen Metro is Vanke’s largest
cities and the diversity of its portfolio, shareholder. SOHO China increased
which includes commercial property, only 1 percent in value, while Poly Real
MOBILE SHOPPING
like shopping malls, as well as housing. Estate and Gemdale declined. And one
Diverse holdings also enabled R&F real estate brand, Greenland Group,
Properties to grow 18 percent in brand joined the ranking for the first time.
TRANSFORMS RETAIL
value. It recently expanded its portfolio
REAL ESTATE BRANDS IN THE BRANDZ™ CHINA TOP 100

Integration of online, offline, data, and logistics
+47%
Brand Brand Value
Value % Change Year signals new era for retailers and consumers
On Singles Day, China’s annual To provide seamless integration, Alibaba
Market- shopping holiday in November, around purchased a recently-launched grocery
4,486 24 88% Evergrande Group Guangzhou 1996
Evergrande Real Estate
Driven Firm 90 percent of Alibaba’s transactions chain named Hema Xiansheng, whose
happened on mobile devices. locations operate both as retail stores
Market- That statistic illustrates the mobile and delivery centers for online orders.
3,640 27 6% China Vanke Co Ltd Shenzhen 1984
Vanke
Driven Firm transformation happening in Chinese Customers can shop the store with
retail, and in part it explains the robust an app that assists in gaining product
Country Garden Market- 47 percent increase in category value, details and ordering. In a similar way,
2,362 44 32% Shunde 1992
Country Garden
Holdings Co Ltd Driven Firm following a 22 percent rise a year ago. JD.com coordinates online-offline
activities with its JD Daojia grocery
Poly Real Estate Group But the Singles Day statistic tells only stores.
1,977 51 -9% Guangzhou 1992 SOE part of the story. Simultaneously,
Poly Real Estate
Co Ltd
Chinese consumers are purchasing With Hema, Alibaba aligned with a
Longfor Properties Co Market- online and offline, and shopping at both brand that differentiates from most
887 72 29% Chongqing 1994 at the largest retail brands and some of traditional supermarkets with its
Longfor
Ltd Driven Firm
the smallest. In a sense, Chinese retail emphasis on freshness. Customers can
Greenland Holdings is both consolidating and fragmenting. shop for products in physical stores or
868 73 NEW Shanghai 1992 SOE And O2O, the short hand for describing on mobile devices. They can have fresh
Greenland Group
Corp Ltd
online and offline coordination, does not food prepared and eat it at a restaurant
Guangzhou R&F Market- fully describe the seamless integration area in a Hema store or have it delivered
638 83 18% Guangzhou 1994 of online, offline, data, and logistics, to their home. The shopper experience
Properties Co Ltd Driven Firm
R&F Properties
which Alibaba CEO Jack Ma calls New is intended to erase the normal borders
Retail. of retail and contain the shopper in the
Market-
601 85 -12% Gemdale Corp Shenzhen 1988 Alibaba ecosystem.
Gemdale
Driven Firms
Market-
351 98 1% SOHO China Ltd Beijing 1995
SOHO China
Driven Firms
164 165
Retail Technology
CHINA PURSUES
Alibaba purchased a major stake in
Sun Art Retail Group, a hypermarket
Suning, China’s largest retail chain of
home electronics, illustrates the impact
brand has leveraged this reputation for
sharp pricing and unexpected deals as LEADERSHIP
IN TECHNOLOGY
company that operates Auchan and of O2O partnerships. Just a few years it has expanded into more categories,
RT-mark stores in China. Alibaba also ago, in the early days of e-commerce, including personal care. JD.com,
holds stakes in Suning, known for the brand’s more than 1,000 physical along with internet giant Tencent,
INNOVATION
its consumer electronics stores; the stores seemed like expensive and invested $863 million in Vip.com in
Bailan Group, which operates almost underperforming assets. Suning an alliance to strengthen the three
5,000 stores across food and non- expanded its range, leveraging its retail brands competitively, especially against
food sectors; and Sanjiang Shopping
Club Co., a regional food discounter.
space to include fast moving consumer
goods (FMCG) that drive more frequent
Alibaba.
+19%
Along with enhancing the customer customer traffic. And Suning entered Not all of China’s leading retailers Brand initiatives focus on content and virtual reality
experience, these partnerships yield a strategic partnership with Alibaba. originated in e-commerce. Yonghui
data to increase understanding of the Suning gained access to Alibaba’s Superstores has opened around 100 The technology category, which systems, and, increasingly, virtual reality purchases seamlessly using WeChat.
consumer’s shopping behavior, which online audience. Alibaba strengthened physical stores per year. It is known for includes internet platform, content, (VR) and artificial intelligence (AI). Yonghui operates around 500 stores.
can now be tracked category-by- its association with home electronics its emphasis on freshness. Last year, and hardware brands, increased 19
category, offline as well as online. and gained more data about customer JD.com invested in Yonghui to help percent, following a 16 percent increase Tencent, China’s most valuable brand, Tencent increased its stake in Snap,
O2O shopping habits. On Singles Day it advance its O2O strength. Yonghui a year ago. iQiyi, a streaming video site continued to innovate and leverage its the owner of Snapchat, the messaging
Analysis of the data not only helps 2017, Suning was the top-selling store is constantly innovating and now is owned by Baidu, led the category in enormous database, which guides the service. Snap could potentially benefit
retailers improve their merchandising on Alibaba’s Tmall site, and Suning’s developing several distinct formats. growth, increasing 64 percent in value, development of products and services from Tencent’s gaming and advertising
and operations, its trove of customer Singles Day online and offline sales Bravo is a premium hypermarket reflecting growing demand for quality with deep insights into consumer expertise, and Tencent could expand
intelligence can be monetized in sales increased 163 percent year-on-year. filled with quality imported products video and other content, and excitement attitudes and behavior. The brand its presence in North America. Along
of services and advertising to vendors. and positioned to serve middle class generated by iQiyi’s impending IPO. rose 25 percent in value, following with JD.com, the e-commerce brand,
In addition, for JD.com, acquisitions of The other major online retailer, Vip. consumers in Tier 1 and 2 cities. In successive annual increases of 29 Tencent invested in VIP.com, an
physical locations enable the brand to com, differentiates from its larger some larger cities Yonghui is opening In his speech to the 19th Party Congress, percent and 24 percent. e-commerce brand with special strength
leverage a key strength, logistics, to competitor by focusing more on lower convenience stores with at least two President Xi Jinping highlighted the in lower tier markets. The deal is
become China’s largest infrastructure tier markets. The brand originally distinctions: an emphasis on freshness; importance of technology innovation Tencent’s profits rose on ad revenue intended to strengthen all three brands
provider. JD.com owns its distribution offered mostly apparel for women, and and pick-up and delivery. The final as China changes the engine of driven mostly by mobile gaming and competitively against Alibaba. Tencent
centers, which bestow a strong developed a low-price reputation for format is more of a restaurant where its economy from production to WeChat (WeiXin in Chinese), with also launched a successful IPO for its
advantage when trying to tap the major fashion, particularly items that might diners can also be shoppers for consumption. Government directives, almost one billion Monthly Average e-book subsidiary, China Literature. And
growth opportunities in lower tier be off-season. Time-limited deals groceries or take-away food. like Internet Plus, along with Chinese Users (MAUs). A planned investment Tencent entered a strategic partnership
cities. JD.com is making the distribution incentivized customers to buy before entrepreneurship and openness to in Yonghui Superstores by Tencent with a major science publisher, Springer
centers available smaller brands. the merchandise disappeared. The trying new things, have driven China’s should help both companies enrich their Nature, in an initiative to encourage the
leadership in mobile-centric ecosystems data and enable customers to transact work of young scientists.
that embrace e-commerce, payment
RETAIL BRANDS IN THE BRANDZ™ CHINA TOP 100
Brand Brand Value
Value % Change Year
Alibaba Group Holding Market-

88,623 2 53% Hangzhou 1999
Alibaba
Ltd Driven Firm
Market-
14,579 12 50% JD.com Inc Beijing 1998
JD.COM
Driven Firm
Suning Commerce Market-

3,394 30 0% Nanjing 1990
Suning
Market-
1,875 53 -14% Vipshop Holdings Ltd Guangzhou 2008
vip.com
Driven Firm
Yonghui Superstores Market-

840 76 29% Fuzhou 2001
Yonghui Superstores
Co Ltd Driven Firm
166 167
Technology Telecom Providers
FASTER SERVICE,
Baidu focused primarily on its search in 2018. The funds would be used to Sina rose 24 percent in value
business, with AI initiatives to improve purchase content and strengthen the on the popularity of Sina Weibo,
search and the consumer experience brand against its competitors, including its microblogging site. Telecom
LOWER FEES SLOW

on mobile. It entered major AI- Alibaba and Tencent. All Chinese communications giant ZTE continued
focused strategic collaborations with video streaming competitors invested to expand internationally. It derived 42
smartphone makers Xiaomi and Huawei. in content to grow their audiences percent of its revenue overseas. The
VALUE GROWTH
In both instances, Baidu matched and advertising revenue. Tencent, for Lenovo company continued to lead
its software capabilities with brands example, purchased Game of Thrones the BrandZ™ Top 100 in the percent
whose strengths include hardware and and entered a deal with the NBA for live of business transacted overseas—72
distribution. Huawei, the number three
mobile phone producer in the world,
streaming basketball broadcasts. Youku
entered an agreement with Alibaba,
percent. The company sought more
acquisitions following its announced -12%
after Samsung and Apple, introduced
its Mate 10 smartphone. Priced at
its corporate parent, to create original
content. NetEase, an online video
purchase of a stake in Japan’s Fujitsu Government opens category to mixed ownership
Client Computing company, a deal
almost $1,000 the phone is positioned games provider, successfully introduced that Lenovo expects will increase its
to compete as a premium, even luxury, content outside of China and sought market share in Japan. Flat sales of its The three state-owned brands that China Mobile, the country’s third (For context, Verizon leads US
item—new territory for a Chinese brand. content from abroad to launch in its devices—laptops, tablets, and phones— comprise the telecom provider most valuable brand, after Tencent telecom providers in number of mobile
domestic market. depressed Lenovo’s brand value. category implemented the and Alibaba, and the world’s largest subscribers with 147 million.)
iQiyi, the streaming video site owned government’s digital agenda by telecom provider by subscribers, has
by Baidu, announced plans for an IPO, expanding their networks and investing long dominated the category in China. To fortify the competitiveness of China
in faster 4G service, while lowering China Mobile had 867 million mobile Unicom and China Telecom against
prices for data consumption. The subscribers at the end June 2017. China Mobile, and to accelerate the
TECHNOLOGY BRANDS IN THE BRANDZ™ CHINA TOP 100 telecom providers category dropped
12 percent in brand value, ranking it
In contrast, China Unicom had 270
million mobile subscribers and China
digitization of China and the rollout
of 4G, the Chinese government had
Brand lowest in year-on-year value change Telecom had 230 mobile subscribers. allowed the two brands to collaborate
Brand Value
Value Year among the 21 categories analyzed in on infrastructure development. Now,
% Change
Brand US$ Mil. Rank 2018 vs. 2017 Company Headquarters Formed Ownership the 2018 BrandZ™ China Top 100. the government went a step further.
Market-
132,213 1 25% Tencent Holdings Ltd Shenzhen 1998
Tencent
Driven Firm
Market-
24,990 5 5% Baidu Inc Beijing 2000
Baidu
Driven Firm
Huawei Technologies Market-

24,115 6 18% Shenzhen 1987
Huawei
Co Ltd Driven Firm
Market-
3,558 29 36% NetEase Inc Guangzhou 1997
Netease
Driven Firm
Market-
2,593 39 -22% Lenovo Group Ltd Beijing 1984
Lenovo
Driven Firm
Market-
2,187 47 64% Baidu Inc Beijing 2010
iQiyi
Driven Firm
Alibaba Group Holding Market-

2,104 48 N/A Beijing 2006
Youku
Ltd Driven Firm
Market-
1,900 52 35% ZTE Corp Shenzhen 1985
ZTE
Driven Firm
Market-
1,116 64 24% Sina Corp Beijing 1998
Sina
Driven Firm
168 169
Telecom Providers Travel Agencies
VALUE INCREASES
SHARPLY AS MORE
As part of its mix-ownership reforms,
and in an effort to strengthen state-
owned enterprises (SOEs), the
China Unicom increased 11 percent in
value. Meanwhile, China Mobile, which
declined 15 percent in value, continued
CHINESE TRAVEL +57%
government permitted China Unicom to to strengthen its 4G network and Acquisitions add new capabilities and customers
raise private investment and change its invested in developing 5G technology,
ownership into a state-private mix. The planning to offer 5G service by 2020.
With a 57 percent increase in value, travel. According to the China National of UK-based Skyscanner, which is
mix is intended to provide the best of China Telecom expanded its 4G
the travel agencies category was the Tourism Administration, outbound expected to enhance its site with travel
both worlds: a clear agenda set by the service. It declined 1 percent in brand
second fastest-rising category in the tourism increased 5.1 percent to 62.0 recommendations and reviews from the
government, and more profitable and value.
BrandZ™ China Top 100, after education. million tourists visits during the first half Trip.com site.
efficient execution because of private-
The increase followed a 46 percent rise of 2017, and inbound tourism rose 2.4
sector influence. China’s telecom providers also faced
a year ago when travel agencies and percent to 69.5 million trips. Domestic This period of sharp growth also brought
growing competition from mobile
education tied for leadership in category tourist trips rose 13.5 percent for the first increased regulatory attention and
Tencent, Alibaba, and Baidu virtual network operators (MVNOs),
value appreciation. The purchasing half of 2017. competitive pressure. A government
were among China Unicom’s new that lease, rather than build, network
power and spending priorities of China’s ruling required online sites to stop
stakeholders. Soon after taking on infrastructure. The telecom providers
expanding middle class drove the Ctrip, which is partly owned by Priceline, including certain add-on purchases,
the new investors, China Unicom also planned overseas investments to
expansion of both categories. has assembled a broad assortment of such as insurance, with air ticket sales.
announced it would establish a unit to advance the country’s Belt and Road
services to focus primarily on Chinese While these add-ons do not amount to
commercially leverage its consumer initiatives with infrastructure projects in
Along with Qunar, a newcomer brand, travelers. Along with flights, Ctrip can substantial value, they are high margin.
data. The brand enjoyed a strong profit neighboring countries.
the online site Ctrip again propelled the arrange ground transportation, hotels,
rise, driven primarily by its 4G progress.
travel agency value rise, increasing 36 restaurants, and tourist attractions. Attracted to the massive growth
percent in value on top of a 32 percent It expanded its range with several potential of the travel agency business,
increase a year ago. Qunar is a travel acquisitions, including Trip.com at Alibaba rebranded its travel site, Alitrip,
TELECOM PROVIDER BRANDS IN THE BRANDZ™ CHINA TOP 100 booking website that Ctrip acquired
from Baidu. Caissa, a newcomer to
the end of 2017, when it also made a
major investment in the home booking
calling it Figgy, and designed it to
appeal particularly to young people.
Brand the travel agency category a year platform Tujia.com. Alibaba also entered a partnership with
Brand Value
Value Year ago, declined in value. It is owned by Marriott. Tencent began to leverage
% Change
Brand US$ Mil. Rank 2018 vs. 2017 Company Headquarters Formed Ownership the same corporate parent as Hainan With its prior acquisition of Qunar, China’s robust outbound tourism market
Airlines. Ctrip secured its dominant position with WeChat, targeting international
in China. Air ticket sales more than advertisers who want to reach Chinese
49,231 3 -15% China Mobile Ltd Beijing 1997 SOE
China Mobile
As the country’s economy doubled after the 2016 purchase traveling abroad.
strengthened, Chinese continued to
8,807 17 -1% China Telecom Corp Ltd Beijing 2000 SOE
China Telecom TRAVEL AGENCY BRANDS IN THE BRANDZ™ CHINA TOP 100
China United Network
Brand Brand Value
5,109 23 11% Communications Beijing 2009 SOE
Value % Change Year
China Unicom Limited
Ctrip.com International Market-

3,063 34 36% Shanghai 1999
Ctrip
Ltd Driven Firm
Ctrip.com International Market-

1,159 63 NEW Beijing 2005
Qunar
Ltd Driven Firm
HNA-Caissa Travel Market-

355 95 -17% Beijing 1993
Caissa
170 171
M O R E M AT E R I A L LY W EL L O FF, P E O P L E S EEK . . .
. . . P H YS I CA L A N D S PI R IT UA L W EL L B EI N G.
PORT OF SHANGHAI
C-SUITE Q&A
Sherry Li, General Manager of Branding & Public Relations, BYD
Innovative tech leader

BYD is a global leader in rechargeable
batteries and clean energy
develops electric LINKS BRAND MISSION TO
NATIONAL DEVELOPMENT GOALS
vehicles, urban monorails

transportation, including electric
vehicles, and monorails. Sherry Li rose
rapidly after joining BYD, in 2005, as
secretary to the chairman and president.
Since 2016 she has served as General
Manager of Branding & Public Relations.
COMPANY AND MARKET How did the company

of electricity required burning fossil products sold relatively easily, these battery technology. Most competitors
fuels. In response, BYD entered Chinese manufacturers concluded at the time produced buses with hybrid
develop so broadly from a another business—solar power—with a that the overseas business was quite technologies. We also introduced our
BYD is such a diversified focus on batteries? presence at each phase of the supply simple. However, they learned that electric buses to Europe, Japan, and
technology company, chain. And the solar business led to the they could not guarantee good after- Singapore. This helped build strong
what is its unifying vision? development of solar energy storage sales service. That’s why overseas BYD brand awareness. When we first
Anticipating the growth of battery stations. Today, we divide the business consumers had questions about expanded abroad we looked for the
technology and the potential for into four linked industrial areas: IT, products with the Made in China products that could best represent the
We call our strategy, “Three Green electric cars, Wang Chuanfu, a chemist, automobiles, new energy, and rapid designation. company.
Dreams.” These dreams, and business established BYD in 1995. The company transit.
areas, are: solar power, energy storage, soon produced a concept electric car How has BYD
and electrified transportation. We but focused on building its battery GLOBAL GROWTH distinguished itself
would like to use these “Three Green business. Initial customers included
major phone handset suppliers, such outside of China?
Sherry Li Dreams” to achieve a zero-emission What are the key
General Manager of Branding & ecosystem for the whole society. Just as Nokia and Motorola. Because these
Public Relations challenges for Chinese
last year we officially launched BYD businesses also needed components,
BYD Skyrail, a monorail system that we such as keypads, BYD extended brands expanding abroad? We were cautious when we entered
developed to address the problems its technology expertise beyond the overseas market. We wanted
created by China’s rapid economic batteries. With this initiative, BYD to position BYD as an innovative
development. Although this growth become a leading OEM supplier. To A Chinese company entering the global technology company, different from
helped many people, it produced develop electric cars, BYD required a market needs to be cautious about other Chinese companies. We used
terrible pollution and traffic congestion. license from the Chinese government, the brand image. Ten years ago, a lot our knowhow in high technology to
Skyrail is designed to solve these which the company obtained in 2003, of Chinese manufacturers were first fill gaps in overseas markets. For
problems, with a more affordable with its acquisition of a state-owned exploring the overseas market. For example, when we first entered the
option than subways for smaller cities, automobile company. Critics argued many Chinese companies expanding US market, around five years ago, we
both in China and other parts of the that electric cars still compromised the abroad the most important factor was used electric buses to open the market
world. environment because the generation the cost-performance ratio. After the because we had more advanced
176 177
C-SUITE Q&A
Sherry Li, General Manager of Branding & Public Relations, BYD
“
traffic. Today, electrified public strong. The quality of Chinese brand BRAND BUILDING
transportation is a national strategy. cars has increased a lot. The top
BYD will play an important role in priority of Chinese car buyers is quality.
How do you market and
We use our technology and products to help solve the transition from gasoline-fueled
transportation.
And the quality of Chinese and foreign
brand cars is now comparable. And promote the BYD brand?
China’s problems. Almost all our products are green,

the design of Chinese brand cars has
THE CAR CATEGORY improved.
We see brand as a kind of bridge
which is an important part of social responsibility. What would be the impact

on BYD if Tesla were to
A year ago, strong car sales
were driven in part by the
between the company and the
citizens. BYD’s brand mission is
Electric vehicles still represent a small part of the

“Technological innovations for a
enter China without a consumer rush to buy new better life.” We need to communicate
Chinese partner, as has energy cars before the to several audiences. We use three
total market, but the growth rate has speeded up “ been reported? government reduced its
subsidy. How did car sales
approaches: social, traditional, and
PR. Teenagers, our future customers,
over the past several years, in part because of BYD.

have new ideas and are very brave
We respect Tesla. Without Tesla, the
behave more recently? about saying what they believe. To
reach teenagers, we communicate
electric vehicle era will take longer to
around hot topics on social media to
actualize. We warmly welcome more
For the first quarter of 2017, sales of build an emotional connection. To
electric vehicle players into the Chinese
electric vehicles in China were soft for create awareness among the general
market. The electric vehicle market is
two reasons. First, the government public we use CCTV, billboards, and
booming, but it is still very small. If you
subsidy decreased. Second, and other traditional media. We use various
take the whole transportation market
the main reason, is that after the PR tools, to reach opinion leaders,
in China, the electric vehicle portion
How does China’s Belt and SOCIAL RESPONSIBILITY How does BYD help is less than 2 percent. We would like
government revised the subsidy it did such as industry experts, investors,
not immediately explain the revised government officials, and media
Road initiative affect BYD? advance this agenda of more players to work together with
policy. The uncertainty impacted people. Overseas, we have Leonardo
How important is social BYD to increase the electric vehicle
building a more equitable market and ensure that more Chinese
sales. Once the policy was clarified the DiCaprio as our spokesperson. As
responsibility at BYD? sales pace resumed, indicating that the environment ambassador of the
We believe that the emphasis on Belt
nation? people can gain access to quality
many Chinese consumers still want to United Nations, he is a strong voice. We
and Road in the 19th Congress is a products. BYD is the world’s largest
purchase electric vehicles even with share the same vision about protecting
good development. It should help In the 19th Congress, President Xi maker and seller of electric vehicles.
We use our technology and products lower subsidies. Also, BYD will soon the environment and confronting
our continued overseas growth. But described how the main challenges of We enjoyed a 13 percent share of the
to help solve China’s problems. Almost introduce electric vehicles that are climate change. We collaborated on a
BYD is already a global company, China have changed. People in China electric vehicle global market last year.
all our products are green, which is an comparable in price to gas-powered campaign about cooling the earth by
present on five continents. Over 200 have a strong desire to pursue a better Tesla is number two.
important part of social responsibility. vehicles. one degree.
cities outside of China have already life. However, prosperity is not yet
Electric vehicles still represent a small
expressed interest in our electric shared by all Chinese people. And a Sales of Chinese brand
part of the total market, but the growth
vehicles and solar and energy storage. great disparity exists between those
rate has speeded up over the past cars in China exceeded
We operate factories and offices in who have and have not benefited from
several years, in part because of BYD. 10 million for the second
more than 10 countries. Our business China’s development over the past
is diversified and includes: business- several decades. Our mission at BYD
Today, people often think of electric consecutive year. Do you
cars as transportation for the rich. BYD
to-consumer, our consumer vehicles in is to use our new energy technology see that trend continuing?
intends to provide affordable electric
China; business-to-business, our buses to help people live a better life. Our
vehicles for all citizens. For example, in
and taxis; and we do business-to- corporate mission coincides with the
2010 we introduced our electric taxis
government with projects like Skyrail, national mission. I expect that this trend will continue,
and they were met with skepticism.
which are planned for the Philippines and sales of Chinese brand cars will
Some people were concerned that
and Egypt. grow. The SUV segment is especially
would run out of power and block
178 179
C-SUITE Q&A
Cindy Wang, Chief Marketing Officer, Uxin Group
Customer centric
Founded in 2011, Uxin Group has rapidly
grown to become a leading used car
philosophy drives online
used car trading platform
platform in China. Chief Marketing
Officer Cindy Wang joined Uxin Group
from Uber, where she headed marketing
in China. She has worked worldwide for
several consulting companies, and was
educated in China and the US, where
she earned her master’s degree from
Yale University.
OMNI-CHANNEL MARKETING
CULTIVATES YOUNG GENERATIONS
COMPANY AND MARKET Uxin Used Car provides an excellent

How do you expect Uxin’s What most differentiates Does the name Uxin have
user experience, as well as a strong
relationship with used car dealers. business to change over Uxin from its competition? special significance?
Please describe what it
the next five years? What And what are key lessons
means to be an online How large is the market major opportunities do that other brands can learn In Chinese, Uxin means high-quality
used car trading platform for used cars in China? you see? from Uxin’s success? and integrity. Uxin is devoted in
with wholesale and retail How many used cars are building an open, fair, just, and
businesses? sold annually and at what transparent used car trading platform
With the growth of per capita Uxin provides one-stop service to with the focus on dedication, integrity,
rate is the market growing? disposable income, China’s third- and meet the needs of all parties during a and innovative spirit.
Uxin offers the business-to-business fourth-tier cities, as well as rural areas, trade. This laid the foundation for us to
(B2B) used car trading platform, Uxin are becoming increasingly important become China’s largest online used car
Auction, and the business-to-customer According to China Automobile
Cindy Wang used car markets. We plan to build trading platform. Uxin owes its success
(B2C) used car trading platform, Uxin Dealers Association, China’s used car
Chief Marketing Officer more than 3,000 service centers by to the trust of consumers and car
Used Car, and other services. By market has grown at an annual rate
Uxin Group 2020, covering all county level cities dealers. So far, we have served over
gathering a massive number of buyers of 15-to-20 percent, since 2015. Over
and county towns with populations 100,000 dealers and built strong loyalty
and sellers, Uxin Auction has built a 12.4 million used cars were traded in
over 100,000. We are in process of with them. In order to offer the best
more efficient bilateral market with 2017, up by 19.3 percent year-on-year.
improving our logistics system. In user experience, we guarantee honest
its professional inspection system It is predicted that Chinese used car
2017, Uxin launched 10 percent upfront car reports, pricing, and sourcing,
and delivery logistics system. In B2C, sales will catch up with new car sales
financing product for its used car and fully protect consumers’ rights
Uxin Used Car transformed the way by 2020. For Uxin, achieving sales
business, making it more affordable for and interests. In addition, we focus on
people buy cars by offering a multitude and other Key Performance Indicators
young people to own their cars. building the brand in innovative ways
of services, such as: used car listing, (KPIs) are important, of course, but we
with customer-centric initiatives.
standardized inspection services, believe that they are an outcome of our
an intelligent pricing system, and leadership in educating and serving
comprehensive after-sales service. customers and expanding the market.
180 181
C-SUITE Q&A
Cindy Wang, Chief Marketing Officer, Uxin Group
CONSUMERS AND
THE CHINESE DREAM
Who are Uxin’s typical
In many categories,
growth in China is about
penetration, especially
into lower tier cities. Is that
Uxin platform offers a full range of price
points to satisfy most purchase desires.
BRAND BUILDING
“
We understand our customer’s journey and adapt our
media mix accordingly. We are present at multiple
customers, both Brands across categories
digital touch points to inspire consumers and ignite
the case with the used car
business-to-consumer and are also working hard to
category? And how does
business-to-business?
When it began, in 2011, Uxin focused

Uxin increase penetration
in lower tier markets?
integrate their products,
data, and logistics online
and offline, something
their interest and desire.
“
on the trading between car dealers. that Uxin apparently does
In 2015, Uxin announced its entry Car registration in China’s third- and
well. What advice do you
into retail sector. In 2018, consumers fourth-tier cities as well as rural areas is
can search, and purchase used cars lower than that in first- and second-tier have for brands attempting
anywhere at any time by browsing cities. However, with steady growth of to achieve seamless an artificial intelligence pricing system.
What media mix do you use How does Uxin customize
per capita disposable income, the car During the transaction, consumers
Uxin’s used car website and mobile integration? to communicate the Uxin the media and message
app. ownership potential in lower tier areas online data will be synchronized to
is increasing immensely. By offering a retail stores, and sales staff can use brand? And how has that according to audience (age,
the data for accurate recommendation.
Based on your knowledge multitude of full services, including car With the arrival of the New Retail changed over time? gender, urban/rural)? And
inspection, financial services, logistics By leveraging big data and artificial
of Uxin customers, what era, online and offline integration is
intelligence, Uxin auctions can be how do you integrate the
and warehousing, transfer procedure, becoming a must, and the application
insights can you share and after-sales maintenance, Uxin done within seconds. With simple and messages across
of big data is one of the key steps. By In this low-frequency marketplace,
about how Chinese helps the consumers overcome integrating transactional and consumer
convenient trading procedures, Uxin
engagement strategy is necessary, audiences/channels?
geographical restrictions, and enjoy reduces consumer’s cost of decision-
consumers are changing? behavioral data, along with product and
making and makes it more efficient.
and we take advantage of an inherent
the one-stop car trading experience, services, we enhance the collaboration human desire for staying up-to-date.
What are their key concerns only a click away. Uxin adopts an omni-channel marketing
and allocation of online and offline We understand our customer’s journey
when buying a used car? information and resources. These steps What is the key message and adapt our media mix accordingly. strategy. In order to attract the Post-
The Chinese Dream is partly improve industry efficiency and benefit that Uxin attempts We are present at multiple digital touch 80s and Post-90s generations, Uxin
consumers by making it easier to buy a points to inspire consumers and ignite sponsored Running Man, The Voice
According to our transaction data, used about helping people live to communicate to of China and other TV variety shows.
car—in one day. their interest and desire. For example,
car consumers are getting younger better lives. How does Uxin consumers? And what are in 2017 we adopted brand content for To highlight how used car purchasing
and younger. The post-90s generation help fulfill this dream? How does Uxin use big the key brand building and the well-known, anti-graft TV drama is environmentally responsible, we
is on the rise. Having grown up with invited Leonardo DiCaprio to serve as
data and artificial promotion elements of Uxin In the Name of People. Our brand
internet, they are willing to purchase communication also pays attention brand spokesperson. We also adopted
cars online and are open to pay by Cars expand the range of people’s life intelligence to serve its campaigns? a digital marketing mix with creative
to creative integration of content and
installment. These consumers seek a and work, and shorten the distance to ways to deeply engage consumers
customers better and gain media, such as with the film product
more cost-efficient solution for used high-quality opportunities in education, placement in Transformers 5: The Last in social media sites, such as Weibo,
car purchasing with a fixed budget. a competitive advantage? By building a trustworthy brand image
WeChat, where most of post-80s and
medical services, employment, and Knight.
Top-tier car brands and best-seller car we achieve our promise of connecting
tourism, for example. Our vision is to post-90s generations of consumers
models are also popular in the used consumers with their dream car. To
help 300 million Chinese families own are gathered. Despite differences
car market. Based on the many studies Uxin Used Car is the first to introduce achieve this promise, Uxin implements
their dream car easily, which is highly in audience, channels and methods
we’ve conducted to understand the key big data and artificial intelligence omni-channel marketing campaigns,
consistent with the core of Chinese of brand communication, the core
concerns of Chinese car buyers, we technology into the industry. Based including variety show sponsorship and
Dream. As car purchasing matures in value of the Uxin brand is consistent:
have prioritized the need to be genuine on the massive authentic transaction film product placement, to integrate
China, people are more open to used “Connecting you and your dream car.”
and transparent, core principles of the data on the platform, Uxin develops our used car trading platform into the
cars and the cost benefits they offer. The
brand. consumers’ new lifestyle.
182 183
C-SUITE Q&A
Tony Yang, Senior Vice President, Alibaba Digital Media & Entertainment Group
Video platform delights

viewers with top quality
Youku is a leading digital and cultural
entertainment platform in China. Since
2015, it has been part of Alibaba,
the giant e-commerce and social
cultural content
network ecosystem. Mr. Yang Zheng
(Tony), the Senior Vice President of
Alibaba Digital Media & Entertainment
Business Group, focusing on creating
and marketing innovative digital
content to accelerate the growth of
China’s entertainment industry.
WILLING TO PAY FOR QUALITY, CONSUMERS

EMBRACE MEMBERSHIP MODELS
COMPANY AND MARKET How is Youku content Can you provide some What changes do you
changing to keep up with specific examples, please? anticipate in 2018?
How do you define the How does Youku
evolving viewer interests
core mission of Youku? fit with Alibaba?
and attention spans? Youku divides drama series into We believe that in 2018 online variety
three categories for different target shows will enter the blockbuster era, as
People are spending more and more Youku is one of the two core platforms audiences, broadcasting media and development accelerates and polarizes
Chinese consumers’ demand for
time on the internet, and nearly half of of Alibaba’s digital entertainment business models. These include: into a dumbbell effect, with expanded
content is experiencing a shift from
it is spent on digital entertainment. Our group, which is available for mobile, (1) prime time TV series focused on variety of content for both mass and
volume to quality. Youku is driving
mission is to create a holistic digital PCs, and over-the-top devices (OTT). family happiness, (Revenue: primarily targeted audiences.
the escalation of both quality and
entertainment experience that helps Youku offers various content formats advertising); (2) super TV series, mainly
volume of content consumption, and
young people in China achieve greater including, but not limited to, Youku broadcast on the internet and possibly
continuously improving the content
Tony Yang happiness through visual, auditory original content, licensed content, live in movie theaters (Revenue: advertising
quality and the ecosystem of China’s
Senior Vice President and kinesthetic experience. Digital shows, and virtual reality. and membership); and (3) internet
entertainment industry. Youku put
Alibaba Digital Media & entertainment reflects and shapes how exclusives based on viewer demand,
forward the concept of the “super
Entertainment Group young people see the world and thus targeting primarily young people
episode,” which depends on the
we believe we shoulder an important (Revenue: membership).
highest quality production values.
mission to help make entertainment for
We believe that in the future, the
young people more positive.
boundaries between online drama
series and TV series will gradually
disappear.
184 185
C-SUITE Q&A
Tony Yang, Senior Vice President, Alibaba Digital Media & Entertainment Group
“
People are more and more willing to pay for good
content. Membership models continue to expand with
“
We believe that the future of the entertainment industry
depends on the combination of content and technology—
the introduction of excellent content and exclusive
“ a mixed model of Hollywood and Silicon Valley.
“
member opportunities.
A premiumization trend The successful miniseries The Chinese Dream is in

today crosses many The Great Shokunin part about restoring China
BRAND BUILDING expertise, Youku made a series of
CONSUMERS AND THE categories. How does it suggests there is a to its historic stature as
improvements to the user experience,
enabling users to have a smoother
CHINESE DREAM affect Youku? growing appreciation for a global leader. Is Youku
In this growing and high-definition viewing experience. Chinese craftsmanship active overseas? Does
competitive market, how How are Chinese
(as a balance to modern it have international
does Youku differentiate How do you recommend consumers changing in Youku plans to lead the revolution of
digital entertainment industry, and to materialism). What are ambitions, and if it does
from competitors like iQiyi that companies can best the videos they watch, and
truly become young people’s “first and the most popular genres can you please elaborate?
and Tencent Video? use video to build their how and when they watch must go” place for digital entertainment and what trends are
brands? them? content and experience. As consumers
in China are also pursuing “quality”
driving their popularity? The cultural industry is undergoing
We believe that the future of the and “branding” of content itself, robust growth in China, and we believe
entertainment industry depends As with all their viewing, consumers People are more and more willing to Youku pioneered the concept of super the export of high-quality content will
on the combination of content and pay for good content. Membership A program succeeds because it
want to see brand content with a better episodes with film production quality. help people around the world gain a
technology—a mixed model of models continue to expand with the satisfies the user’s emotion and makes
story, more resonating emotions, and The success of these series confirms better understanding of the soft power
Hollywood and Silicon Valley. We do introduction of excellent content and others think that user has aesthetic
more sophisticated production. Brands our belief that the market is hungry for of China. For example, we recently
not think and act as a simple video exclusive member opportunities. It is good taste. On the other hand, young
can also make the consumer video high-quality content. signed an exclusive deal for Netflix
content platform. We operate Youku in estimated that by 2019, user payment people are also looking for more
experience richer and more innovative. to distribute our online drama series
the context of the Alibaba ecosystem, will account for 38 percent of total knowledge. Viewers are looking for
Viewers can interact with brand Day and Night to audiences outside of
which is an important competitive video industry revenue. a benefit for their time invested—the
content from a single screen or multiple China. It will be distributed to over 109
advantage. Over the past year, taking pleasure of listening to an interesting
screens. million subscribers in 190 countries and
advantage of Alibaba’s technology conversation, or watching beautiful
regions around the world. We believe
scenery, or learning about history, for
“
Youku can be a pioneer and become a
example.
leader in driving this initiative.
Chinese consumers’ demand for content is

experiencing a shift from volume to quality.
“
186 187
B E LT A N D R OA D I N I T I AT I V E S R EN E W. . .
. . .C H I N A’ S S I L K R OA D T R A D E P R EEM I N EN C E .
LUJIAZUI, SHANGHAI
THOUGHT
LEADERSHIP
05 THOUGHT LEADERSHIP TOP 100 Most Valuable Chinese Brands 2018
The Chinese Dream
HISTORIC
Shortly after taking power in 2012, President Xi Jinping
began talking about the Chinese Dream. The concept has
since been discussed at length by government officials,
scholars, and journalists all over the world. Defined
PERIOD
predominantly as the “great rejuvenation of the Chinese
nation,” the Chinese Dream is a more collective, national Scott Kronick
concept than its individual-focused counterparts in the President & CEO
Ogilvy Public Relations, Asia Pacific
US or UK. Though less emphasized in official speeches
Scott.Kronick@ogilvy.com
and editorials, the Chinese Dream also carries with it the
OF NATIONAL
personal aspirations of 1.3 billion individuals, people striving
for material well-being, self-improvement, and purpose.
REJUVENATION
In his opening address at the historic PRIDE AND POWER: powerful, how they can contribute to
19th Party Congress in October, The foreign affairs dream Chinese soft power and strengthen
President Xi mentioned the Chinese perceptions of China overseas. China
Dream thirteen times. Among other is transitioning from the factory of the
INSPIRES CHINA
According to Xi, the future “will be
crucial tasks articulated as the an era that sees China moving closer world to a center of innovation, but
theme of the Congress, Xi noted to center stage and making greater much of the world still views Chinese
the mission of “working tirelessly to contributions to mankind.” He went on brands as copycats and Made in
realize the Chinese Dream of national to say that the dream of the Chinese China as an unenviable label. To be
rejuvenation.” Though the concept can people “is closely connected with successful in the new era and help
be vague (“the Chinese dream is about the dreams of the peoples of other realize the Chinese Dream, brands
history, the present, and the future”), countries,” making it clear that the must help change this perception.
careful analysis of Xi’s speech reveals Chinese Dream is intended to have To do so they should partner with
that utterances of the Chinese Dream a positive impact beyond China’s and hire in-market locals as well as
BRANDS PARTICIPATE BY HELPING

were almost always accompanied by borders. Though on the one hand invest in market research. This will
declarations about making the country China is becoming assertive in global help them understand perceptions of
proud and powerful in foreign affairs, or China, their industry, and their brand
CONSUMERS FULFILL THEIR DREAMS

politics and rapidly modernizing its
improving lives and growing prosperity military, China also envisions playing in different markets and mold their
in economic affairs. an influential role combating climate communications strategy accordingly.
change, advancing peace-keeping They must understand the local
Brands that move the Chinese nation, efforts, and becoming an innovative landscape overseas by identifying
families, and individuals closer to leader in the technologies of the future. key stakeholders and getting their
realizing the Chinese Dream will be All of this reflects the already pervasive buy-in, not just from government but
viewed favorably by policymakers and sense across Chinese society that from across civil society. They should
consumers alike. As China enters the China has arrived on the world stage, build partnerships with local brands
Ogilvy is a well-known marketing “New Era of Socialism with Chinese and is only going to continue its and organizations to nurture trust and
communications company that Characteristics,” it is vital to understand growth. collaboration.
offers integrated marketing what the Chinese Dream means for
solutions to clients. Ogilvy was those brands and how they can realize Brands must consider how they
named the Cannes Lions Network of their own Chinese Dream. help China become more proud and
the Year for five consecutive years.
www.ogilvy.com
194 195
The Chinese Dream
“
As brands think about how to
define their value proposition in
the new era, they would be well
advised to consider how they
improve people’s lives qualitatively.
The traditional quality of life
indicators like health, education,
and the environment will remain
paramount for years to come. “
Above all, they should think long term
about their brand’s mission, leverage
their company’s expertise to create
real social benefits, and communicate
PROSPERITY AND BETTER LIVES:
The economic dream
will remain paramount for years to
come. Brands that can make health and
education more affordable, accessible,
and personalized will be highly valued
ladder consumers are. Brands should
think about how they segment the
market and the benefits they bring
to different groups. To understand
“
China is transitioning from the
factory of the world to a center of
In the new era, Xi is focusing on
innovation, but much of the world

with the local market through effective quality of growth over quantity. To in the new era. what a better life means to different
storytelling. This will not happen realize the Chinese Dream, Xi stated, segments, brand must stay close to the
overnight, but the momentum is there China must “help people realize While material wealth in the form of market with research and new insights.
and if brands can earn the trust of
overseas markets, they can gradually
their aspirations for a better life.” He
continued to de-emphasize hard
homes, cars, and other products are
still essential to a better life, Chinese
Chinese consumers’ needs and wants
are constantly changing. They get still views Chinese brands as
copycats and Made in China as an
build influence and help change the quantitative growth targets in place of are increasingly finding wealth in other bored quickly and are always looking
perception of China. As they do, they soft qualitative targets, emphasizing areas, such as spending more time for new and unknown products and
will contribute to the pride and soft with family and friends, travel and other experiences. Chinese consumers are
unenviable label. To be successful

“quality development.” As brands
power associated with the Chinese think about how to define their value unique experiences, and health, fitness, demanding higher quality. They are
Dream. Foreign brands that partner proposition in the new era, they would and well-being. young, active, and upwardly mobile.
with Chinese brands, and facilitate the
dialogue between Chinese brands
be well advised to consider how they
improve people’s lives qualitatively. The What precisely a better life means will
They expect convenience in everything
from meal delivery to financial services. in the new era and help realize
the Chinese Dream, brands must
and foreign markets will also see great traditional quality of life indicators like vary tremendously based on where in The brands that facilitate the discovery
benefits in the new era. health, education, and the environment life and where on the socioeconomic and delivery of a better-quality life will
be well positioned to succeed in the
new era.
help change this perception.
“
196 197
E - CO M M ER C E E X PA N DS ACC ES S TO T H E G O O D LI FE ,
B U T A D DS L A S T- M I L E LO G I STI CA L C H A L L EN G ES .
Innovation
CHINA’S TECH
Over the past three decades, China has experienced
a remarkable transformation from a poor, largely
agricultural economy to the world’s industrial
powerhouse and second-largest economy. China
ENTREPRENEURS
achieved double-digit economic growth with an
industrious, low-wage labor force and continuing Enbo Wang
export expansion. Economists classified China’s Partner, Greater China
Organization Regional Practice Area Lead, Asia
economic growth model as investment- or export-
Kantar Consulting
driven. In the wake of the last global economic
LOOKING
Enbo.Wang@kantarconsulting.com
downturn, the Chinese shifted from this growth
model to a more consumption- and service-led
model that aims to help sustain the country’s growth,
at a slower rate, over the next decade and beyond.
ABROAD FOR
OPPORTUNITY
The “New Normal” economic policies Tencent (BAT) are powering China’s powerhouses. These factors include:
introduced after 18th Congress of impressive progress in the digital the fast-growing domestic consumer
the Chinese Communist Party, in economy with commercialization of market, unmatched state-owned
November 2013, have created growing their services from internet search, service provider capabilities, relatively
demand for consumer goods and gaming, media and entertainment, to relaxed regulations, and plentiful
services in an increasing urban and e-commerce and financial services, venture capital.
middle-class population. An “Internet and bringing new business model
Plus” directive, introduced by the innovation to the world. These three The first wave of the internet
government to accelerate economic companies individually have 500- entrepreneurs inspired a subsequent
growth, has benefited Chinese digital to-900 million active monthly users. group of China’s top talents to
ONCE SEEN AS A COPYCAT NATION,

and technology enterprises. At the end Outside of China, Baidu, Amazon, outperform them, with better product
of 2016, China’s digital economy was and Tencent are still often described, features and more robust business
CHINA IS BECOMING THE COPIED

RMB 22.6 trillion (US$ 3.5 trillion) with respectively, as Chinese versions of models. The many examples include:
18.9 percent annual growth, according Google, Amazon, and Facebook. This WeChat, not a singular messaging
to the official data of China Academy analogy does not adequately capture app, but a platform from social
of Information and Communications how these three internet giants are media to payment; Alipay, not a rigid
Technology (CAICT), an organization investing in China’s digital ecosystem online/mobile money transfer, but
of Ministry of Industry and Information and reshaping consumer society. an ecosystem that centers around
Technology (MIIT). CAICT also expects payment; and Weibo, not a simply
China’s digital economy to be valued CHINA WAS A TECH COPIER copy of Twitter, because of its rich
at RMB 32 trillion (US$ 4.8 trillion), or contents and algorithm-based feeds;
Kantar Consulting is a specialist growth 35 percent of the GDP, by 2020, before Starting in the late 1990s, Chinese Didi Chuxing, which eliminated Uber
consultancy. With over 1,000 analysts, comprising over half of the country’s tech entrepreneurs like baidu.com, from Chinese market with its extensive
thought leaders, software developers and GDP by 2030. sohu.com, and sina.com started range of services; and, Meituan-
expert consultants we help clients develop Dianping, a combination of Groupon,
copying successful US dot-com
and execute brand, marketing, retail, sales China’s booming digital economy Yelp, and your local delivery services.
businesses. In the past five years,
and shopper strategies to deliver growth.
today serves as a major engine for the favorable factors combined, enabling
country’s economic growth. China’s China’s old copycat entrepreneurs to
www.consulting.kantar.com
giant internet trio—Baidu, Alibaba, and transform themselves into innovation
200 201
Innovation
As a result, China has become equal to NOW, OTHERS COPY CHINA computing efficiency. China has
the US in product innovation. Unique successfully transformed its economy
Chinese innovations enable Artificial Now, the innovation story is reversed. from investment/export-driven to
Intelligence (AI) technology advances. We have entered an age when the consumption/service-led with a trade
Examples include: Toutiao (a news surplus in digital services of up to
BRAND BUILDING
world is copying China. There are many
app), Mobike (a bike sharing app), and examples. In the US, Apple copied $15 billion in 2016. And China has
Musical.ly (a lip-syncing and video- WeChat when it added ApplePay established itself as an undeniable
sharing app). In market valuation, and interactive features in iMessage. global leader in consumer-oriented
these Chinese innovator brands have In Southeast Asia, Garena, which digital technologies and disruptive
ACTION POINTS
already surpassed their Western listed recently on the New York Stock innovation.
counterparts. Undoubtedly, Chinese Exchange, learned from Tencent when
tech entrepreneurs now lead the it rebranded as Sea Limited to lead in Other giants like BAT will continue
world in many emerging sectors, from digital entertainment, e-commerce, and to emerge. But this list will go
livestreaming to bike sharing. digital financial services. And in India, beyond digital media and computing,
PayTM received funding and guidance e-commerce and payment services,
And Chinese entrepreneurs now have and more toward FinTech, autonomous
GAIN INSIGHT
from Alibaba to become India’s leading
global ambitions. They are prepared digital wallet. vehicles, 3D printing, robotics, drones,
to expand abroad, having succeeded and AI ventures. Digital continues to
in the world’s most competitive China has become the world’s largest expand, and its major breakthroughs— Learn about Chinese innovation
and ruthless market, where tech
entrepreneurs compete like wrestlers,
e-commerce market, accounting for
over 40 percent of global transactions.
like smart manufacturing, industrial
internet, and the digitalization of
through first-hand experience INNOVATE BUSINESS
and learn to evolve very quickly into One-in-three of the world’s unicorns traditional industries—will drive China’s in China. Chinese tech giants MODELS
sophisticated operators who can build (start-ups valued at more than $1 economic transformation and industrial are coming to international
impenetrable one-stop ecosystems to billion) is Chinese. Chinese cloud upgrading. markets. Tencent’s overseas Business opportunities are
protect their businesses. providers hold the world record for investments in Tesla, Snap, and shifting, not disappearing. It
Spotify are just the start. becomes crucial to create and
innovate growth strategies
based on consumer demands.
“
Chinese entrepreneurs now have global ambitions.
They are prepared to expand abroad, having
IMPROVE CUSTOMER
EXPERIENCE
STRUCTURE
In the age of the connected FOR CHANGE
succeeded in the world’s most competitive and consumers, a customer-
centric growth model offering The ways we organize our
ruthless market, where tech entrepreneurs compete an integrated online-to-

offline experience creates
businesses have to match
the market’s evolution.
like wrestlers, and learn to evolve very quickly into competitive advantage. Relevant operating models,
organizational design, skills, and
sophisticated operators who can build impenetrable capabilities need to be rebuilt.
one-stop ecosystems to protect their businesses.

“
202 203
Penetration
GROWING
The key to sales growth is attracting more buyers to
your brand—deepening penetration, getting more
households in a particular market to buy. Kantar
SALES MEANS
Worldpanel has validated this fact by looking at
the correlation between sale changes and different Natalie Babbage
Experts Solutions Director
consumer measures for more than 8,000 brands in Kantar Worldpanel, China
19 countries, including China. Natalie.Babbage@ctrChina.cn
ENDLESSLY To attract buyers to your brand, start by

gaining insight about consumer desires
across categories and countries, and
identified six key factors that together
2. INNOVATION
DRAWING MORE
and behavior and launch related influence a brand’s ability to grow its Brands constantly launch new
products. For example, in China today, buyer base: availability, innovation, variants in order to try and attract new
brands would benefit from introducing price, assortment, promotion, and shoppers. In practice, though, we do
premium products that fit with long- equity. Here are the details: not see a strong correlation overall
term trends that value health, quality, between the percent of sales gained
and me-time. 1. AVAILABILITY from new products and whether the
BRAND BUYERS
brand is growing or not. This makes
In addition, brands looking to attract Globally, the biggest differentiator sense when we dive deeper into the
buyers should be talking to a wide between a growing brand and a data. In China’s fast-moving consumer
range of consumers as often as declining brand is distribution. This goods (FMCG) market over the last
possible in various ways, including: is also true in China. E-commerce three years, 43 percent of the new
creative media advertising and has enabled many brands to reach SKUs launched from the top brands
marketing; presence in physical audiences beyond key cities, but for came from either a new pack size or
stores with as many products on shelf most brands it does not replace the pack type. Small changes to the current
as possible; and promotions to get benefits derived from expanding line-up do not result in significant
better exposure in store and expand
SUCCESS REQUIRES CONSUMER INSIGHT,

presence in physical stores. Food and incremental growth, as they do not
consumption (without discounting too beverage is still overwhelming bought offer anything new enough to enter into
heavily). offline and has strong impulse element the consideration set of more buyers.
ALONG WITH SIX KEY MARKETING FACTORS But even for brands that do most things
right, attracting buyers is never-ending
in brand and often category choice.
China is a huge country with the fastest
growth happening in the western and
task, as within any given year at least central regions, meaning many areas
half of the consumers you won last year that might have been considered
will leave and most of all your buyers too difficult to reach or not profitable
will only buy one time. now offer potential to widen a brand’s
shopper base.
To help brands meet this challenge,
Kantar Worldpanel is the global expert we reviewed our extensive brand data,
in shoppers’ behaviour with continuous
monitoring, advanced analytics, and
tailored solutions. Kantar Worldpanel
employs over 3,500 people and operates
across 60 countries.
www.kantarworldpanel.com
204 205
Penetration
The most reliable way to innovate 3. PRICE 4. ASSORTMENT 5. PROMOTION 6. EQUITY

and gain incremental sales is through
offering a more premium product. Chinese consumers are trading up Having more products on the shelf is Applying price discounts or providing Mental availability—awareness and
This is especially true in the snacking their products across most categories a strong way of predicting whether a extra volume does not lead to long- consideration—still correlate well
and beauty categories, as shown in FMCG. In China, brands losing brand is growing or not. For example, term brand growth; however, they with brand growth. Increasingly,
when shoppers are willing to pay penetration tend to be 20 percent 22 percent of the fastest growing are an unavoidable part of managing e-commerce is shortening the
more for imported brands and better- cheaper than average, showing that brands in China increased their range an FMCG brand. Everyone buys path-to-purchase, as the wealth
quality ingredients. Dairy is also a success is driven by tapping into the size, while only 3 percent of the worst on promotion and 46 percent of all of product information that can be
category with a lot of incremental premiumization trend. Brands offering performing did. Although innovation FMCG volume in China is sold on deal. accessed online enables consumers
innovation as a result of trading products that feed into wider macro of new flavors and pack sizes does The key to getting the best out of to go from being unaware to being
up consumers through offering trends in the Chinese middle class not necessarily lead to brand growth, promotions is to seek to make them ready to purchase, sometimes in a
new products promising greater are more able to command a price they can help if you are able to use incremental to your brand and also the single sitting. This does not mean
health benefits and exciting flavors. premium. One mega trend is health these offerings to expand the space category. One way to do that is through that old ways of advertising are
These include organic lines, such and wellness, and it is expressed in the you have on the shelf. Growing brands larger packs and bundles, as these load obsolete, as many FMCG categories
as ChangQing yogurt from Yili and fast growth of organic and imported are launching SKUs that are more up shoppers and have the effect of are still purchased offline. And while
Mengniu’s TLS yogurt, which operates food, but also in related habits, such attractive to retailers, to consumers, increasing their consumption rates. All there is a higher chance of switching
at a price premium and won fans with as gym membership and use of fitness or to both. While sales share for these categories have some expandability; to more premium and imported
its durian fruit flavor. apps. Another theme is the desire for innovations are not any greater, these however, big winners are snacks, brands, the larger offline players still
small indulgences, where shoppers sales are incremental to the brand ambient dairy, and soft drinks. have strong online sales share.
are looking for high quality treats. portfolio, rather than simply substitute
sales in the existing range. One caution for designing your
promotional plan: Avoid very large
discounts (ideally those over 30 percent)
as these can have negative impact on
category sales value, and also can be
detrimental for the retailer when going
above 45 percent off the average price.
206 207
KPIs to Brands
BRANDZ™
Consumers in China have never had such rich exposure
to brands. The ubiquity of brands and the seemingly
indefinite touchpoints that brands can leverage to engage
with consumers have provided marketers with exciting
METRICS
new opportunities to craft their marketing campaigns.
More importantly, this also means that marketers in China William Wei
Head of Client Service
have never had instantaneous access to such rich data Kantar Millward Brown, Shanghai
generated by these emerging touchpoints. William.Wei@kantarmillwardbrown.com
PROVIDE LEVERS It is tempting (and relatively easy) to

add yet another metric onto your Brand
DIFFERENCE Creating a point of
differentiation that is meaningful
Brown’s BrandZ™ with behavioral
shopper data from Kantar Worldpanel)
FOR SHAPING
KPI Dashboard, which is accessible to your consumers will make proves that Salience has a very strong
at your fingertips. Yet more does not your brand go a long way. This is relationship with Volume Share,
necessarily mean better. Having too particularly important for brands demonstrating that if a brand comes
many so-called Key Performance that wish to trade up its target readily to mind for many different
Indicators imposed onto a brand will consumers by commanding a people in the context of many different
not only make marketers lose focus, premium price. choice contexts (needs, uses or
BRAND SUCCESS
but may also result in biasing their occasions), then more people will
decisions to short-term KPIs that By integrating our attitudinal choose to buy it.
appear to be more sensitive, such as survey data with behavioral
CTR (digital click-through-rate), which purchasing data using our shopper This means that future brand growth
might in effect be detrimental to the panel we showed that brands that will come from increasing mental
long-term equity of the brand. are perceived to be different, could availability among as many people as
command a far higher price point. possible in order to drive penetration
More than ever, it is imperative that Brands that can charge more are which will in turn drive greater mental
marketers need to move away from much more likely to be seen as availability and frequency of purchase.
being overly-obsessed with descriptive different.
RESEARCH CONFIRMS WAYS TO BUILD metrics that tend to tell you “what
happened, after it’s happened,” to SALIENCE Be the first to mind
In a nutshell, to ensure that we have
strong brands, both now and into
HIGHER EQUITY, PRICES, MARKET SHARE

focus on metrics that matter for the when it matters. In a world where the future, it is critical that we get the
greater success of the brand—the Core nobody has time or inclination earliest possible indicators of what
Equity Indicators (CEIs). to think hard about trivial daily matters for sales success. Faster-
decisions, a brand has a better moving measures of salience/mental
MEANINGFUL What is the chance of being chosen if it comes availability can provide early signals
purpose of your brand? What does to mind more quickly and easily of both shorter- as well as longer-term
your brand mean to your target than competitors, making it the success, and we know that measures
consumers? What do you want obvious and easy choice. of equity correlate with long-term
your brand to be remembered sales. So, measuring the Core Equity
for? These questions should be Combining data from two of the Indicators about your brands against
the ones that will keep marketers world’s largest databases (brand the competition will tell you quickly if
awake at night and day. equity data from Kantar Millward you are going in the right direction.
Kantar Millward Brown specializes in
advertising, marketing communications, For most categories, being
media, digital and brand equity research. Meaningful is the strongest driver
With offices in 56 countries, Kantar Millward for building Brand Power, which is
Brown focuses on building brand strategies.
Kantar Millward Brown’s BrandZ™
metric to measure long-term brand
www.millwardbrown.com
equity.
208 209
KPIs to Brands
“
BRANDZ™
It is imperative that marketers need to move away
from being overly-obsessed with descriptive metrics
that tend to tell you “what happened, after it’s
TOOLS HELP
happened,” to focus on metrics that matter for the
greater success of the brand.
“
BUILD BRAND
EQUITY
Three measurements of how Although the MDS components work category. Meaningful is more significant
consumers view brands—Meaningful, together to drive Brand Power, each is in luxury and fragrances, categories
Different, and Salient (MDS)—comprise individually important and can produce where consumers respond to how
Brand Power, a BrandZ™ metric of specific advantages. Brands that brands make them feel. In technology,
brand equity. Brands with strong Brand consumers see as Different are well a category in which brands emphasize
Power are Meaningful (meet needs in positioned to command a premium, superior features, Difference becomes
relevant ways), Different (distinctive, for example. Similarly, higher Salience a higher proportion of the MDS mix.
even trendsetting), and Salient (come correlates with greater market share. When the consumer connection
easily to mind). depends mostly on habit, in low
The proportion of each component’s involvement categories like dairy,
“
contribution to Brand Power varies by Salience becomes critical.
PROPORTION OF MDS COMPONENTS VARIES BY CATEGORY

Contribution of Meaningful, Different, and Salient to Brand Power
Luxury Goods Fragrances IT Hardware Televisions Dairy Cooking Oil Global Average Future brand growth will come from increasing mental
MEANINGFUL 56% 58% 49% 44% 25% 26% 47% availability among as many people as possible in order
DIFFERENT 18% 12% 24% 23% 22% 21% 17% to drive penetration which will in turn drive greater
SALIENT 26% 30% 27% 33% 54% 52% 36%
mental availability and frequency of purchase.
“
210 211
New Retail
RETAIL LEXICON
With the slowdown in the rate of China’s economic
growth, compared with a few years ago, businesses,
especially key retail sectors, are struggling to adjust to
LAGS CHANGES
this “New Normal.” Intensifying competition has forced
retailers and manufacturers to reform their business Han Yang
Market Insight Consultant
models in line with the core of retail: shopper-oriented
Kantar Consulting, China
service with efficiency. Han.Yang@Kantarconsulting.com
IN NEW REALITY Purchasing behaviors of key consumer

groups are consistently evolving. While
NEW OPPORTUNITIES added services. Kidswant, China’s
largest maternity and baby specialty
OF SHOPPING
people born in the 70’s and 80’s are In 2017, e-commerce giant Alibaba retailer, is an excellent example of
largely driving consumption, younger expanded its physical footprint by a retail brand that understands its
people gradually have become the new acquiring shares of offline retail giants customers and serves them with a
priority for brand attention. Meanwhile, Lianhua Supermarket and Sun Art well-considered combination of sales,
the middle-aged and elderly, who have Retail Group, and investing heavily in service, and experience.
both wealth and leisure time, are more Hema supermarket. JD.com enhanced
open to new products and services. its collaboration with Yonghui E-COMMERCE BEYOND
Superstores and Walmart, to combine A SALES CHANNEL
Moreover, the popularity of smart complementary strengths in supply
phones and increasing 4G availability
SHIFT AFFECTS ONLINE, OFFLINE

chain, product range, logistics, and And e-commerce is evolving beyond
lead to high mobile internet shopping experience. a sole sales channel. More precisely,
penetration. Shoppers are “always Alibaba with abundant resources
MOM AND POP, AND SUPPLIERS

on,” and mobile commerce now Meanwhile, other retail giants, like CR and great competence, is rapidly
accounts for over 85 percent of the Vanguard, which primarily operates expanding from an online marketplace
total e-commerce gross merchandise bricks and mortar stores, have started that facilitates selling products, to a
volume. The boundary between to invest in their online businesses to comprehensive platform that continues
online and offline is vanishing, and the fulfill shopper needs for anytime-and- to sell merchandise, but also provides
concept of omnichannel is evolving. anywhere convenience. Manufacturers, an array of services.
Those omni-shoppers want extreme on the other hand, have put great effort
experience: a responsive and empathic into adjusting their channel strategies Alibaba describes this initiative as Uni
shopping experience while always by customizing their product portfolios, Marketing, the effort to understand
being in control. pricing, promotions, communication, the needs and purchasing cycles of
and services to fit the characteristics of every single consumer within Alibaba’s
With the rise of omnichannel, different online and offline channels. In ecosystem, both online and offline.
integration and consolidation between short, all participants are adapting to In a similar way, JD.com is optimizing
online and offline retail deepened, and New Retail, striving to create the best the potential advantages from its
became blurred. As online and offline experiences for omni-shoppers. cooperation with Tencent, to provide
Kantar Consulting is a specialist growth operators moved into each other’s
consultancy. With over 1,000 analysts, brands with integrated marketing
spaces we needed a term to describe Roles of retail channels are also backed by the most powerful social
thought leaders, software developers and
the changed reality. It was provided changing. Besides selling, physical media data and tools in the China.
expert consultants we help clients develop
and execute brand, marketing, retail, sales by Alibaba Chairman Jack Ma, who stores now emphasize more display,
and shopper strategies to deliver growth. labeled the phenomenon New Retail. experience, and personalized value-
www.consulting.kantar.com
212 213
New Retail
In addition, new channels are emerging players, such as Ele.me and Meituan, (FMCG) from over 600 million outlets in this B2B market, the Alibaba and need to put themselves in the omni-
in the New Retail context. The O2O are now able to fulfill an order within across different regions and city tiers in JD.com also aim to bring those shoppers’ shoes to observe what
takeaway platform—online ordering 30 minutes, meaning that this channel China. In the past, this market could not offline mom and pop stores and their they really want from retail, and from
and physical delivery—has become one can meet the immediate needs of be well covered and served by brands shoppers onto their ecosystems. In each channel—and respond. Roles
of the most frequently-used concepts shoppers, an accomplishment that had due to the fragmentation. But now a this marriage of e-commerce giants of physical stores and e-commerce
in China, with ultra-high user stickiness. eluded e-commerce until now. new business model has emerged. and mom and pop merchants, the should be redefined, and portfolio,
And those takeaway platforms are Named Online B2B, this model most cutting-edge retail and the most price, promotion, and communication
more than just service providers of ECOSYSTEMS EMBRACE builds direct connections between traditional retail converge, producing mechanisms should be tailored to each
catering deliveries. MOM AND POP manufacturers and local mom and pop improved merchandise, experience, channel accordingly. Today, whether
stores by moving the procurement and efficiency that benefits brands and your operation is more like Alibaba
O2O takeaway platforms help The retail revolution, driven by internet, online to improve distribution efficiency consumers. and JD.com, Walmart, or a mom and
business partners, such as physical is even penetrating mom and pop and upgrade the stores. pop operation, success requires a
supermarkets, increase online ordering, stores, a highly fragmented channel To fully benefit from the New Retail flexible organization, capable of fully
and rapidly fulfill orders with fast store- that accounts for almost half China’s This Online B2B model gained great era, manufacturers and retailers need leveraging emerging channels and
to-home grocery deliveries. Leading sales of fast moving consumer goods exposure from the participation of to change their mindset and take a niche touch points to engage shoppers
Alibaba and JD.com. Besides winning shopper-oriented approach. They throughout their journeys.
214 215
P R O M I S ES O F Q UA LIT Y A N D H E A LT H . . .
. . . D R IV E SA L ES A N D P R EM I U M P R I C ES .
Mobile Commerce
MOBILE-CENTRIC
Depending on which study you read, or which
country you may be sitting in, digital media spend
has now passed traditional spend, and the gap
CHINESE
is expected to continue to widen. And China is
ahead of this very sharp curve. Here in China, 95 Gareth Ellen
APAC Planning Director and China COO
percent of connected citizens—around 750 million
Geometry Global
people—access the internet via their mobile device. Gareth.Ellen@geometry.com
CONSUMERS And while the numbers are of course downtime, such as the daily commute, display ad. In fact, the concept of
REMEMBER
significant, we would argue that the motivates video streaming and gaming. mobile advertising itself is perhaps
importance of mobile being the primary A desire for personal connections and outdated and too passive. It speaks to
driver of internet connectivity goes fear of missing out motivate social the re-use of old formats into a new
beyond advertising. Mobile should be media activity. All three mobile uses medium.
viewed as the cornerstone of marketing have created paid media opportunities
activity. Mobile links marketing and and produced the shift in investment How can our brands be more useful?
USEFUL BRAND
sales activity. And the opportunity from traditional to digital media. But In order to bring creative innovation in
for using mobile to build consumer a fourth mobile opportunity—mobile line with the habits of China’s mobile-
engagement and brand building, in commerce—fully emerged in 2017, centric consumers, we must challenge
proximity to retail, exists in China like demonstrated by the 90 percent of ourselves to go beyond the typical
nowhere else. consumers who transacted their 11/11 view of demographics and target
EXPERIENCES
shopping festival purchases on mobile. profile. It is vital to develop a deeper
Mobile has been the No. 1 way understanding of consumer behavior
people access the internet in UTILITY DRIVES ENGAGEMENT and the life moments where our
China since 2012. And the mobile brands can be most useful. This can be
experience, in terms content and To take advantage is this mobile about utility or entertainment, but first
communications opportunities, has commerce opportunity, look to some and foremost we should acknowledge
moved on exponentially since then, of its most successful practitioners. the context of the consumer and
driven by smart phone adoption and The ecosystems of WeChat and be of service to his/her needs. With
MOBILE COMMERCE CAMPAIGNS OFFER

improved servicing speeds. The big Alibaba have been strongly motivated the mobile device playing such an
question from a marketing community by consumer utility rather than the integral role in the lives of China’s
perspective is, how well are we desire to create platforms simply consumers the role of creativity is not
NEW BRAND-BUILDING OPPORTUNITIES keeping up with the advances in

mobile experience offered by the likes
to attract “eyeballs” and generate
media spending. Instead, consumer
to seek attention, it is to fit into the
requirements being displayed and
of Tencent’s WeChat and the Alibaba engagement, and with it mass offer solutions accordingly.
Group? adoption, was driven by usefulness.
And here is a big point of learning for
Three major drivers of mobile use in brand marketers looking to engage
China are: video streaming, gaming, China’s consumers—Being useful to
and social media. The need for a consumer offers a more memorable
entertainment during moments of experience than simply showing a
Geometry Global is a brand activation

and shopper marketing agency that helps
brands thrive in an Omni Channel world.
www.geometry.com
218 219
Mobile Commerce
INNOVATIVE
“
Perhaps more than in any
MOBILE ENGAGES
CONSUMERS
other global economy, it is
vital in China that mobile
solutions and creativity
are the core drivers of “
marketing strategy.
NEW RETAIL is one of the most LIVESTREAMING has LOCATION BASED SERVICES CASHLESS PAYMENT is
talked-about consumer engagement become a core component (LBS) also have been key already at critical mass.
We read recently about the study As with any market, winning developments. The term, introduced of the e-commerce selling to engaging consumers. Consumers comfort level
Unilever and Nestlé conducted within China’s quickly changing by Alibaba CEO Jack Ma, describes arsenal. And the role of key Consumers are already using with going cashless is
in the UK looking at the impact media landscape means being
the next step after O2O, the opinion leaders (KOLs) in this such services to support their clear in China, with mobile
of digital media on in-store consumer-centric. Yet perhaps
purchases. For every £1 spent, the more than in any other global integration of online and offline phenomenon has been key. place-based needs, such as payments 50 times greater
advertisers received £1.94 in sales. economy, it is vital in China that shopping. In New Retail, old The link of entertainment searching for restaurant deals than in the US. The scale
Interestingly, there was also a mobile solutions and creativity definitions and borders give way to to sales is not a new global nearby. But marketers can of retailer adoption and
brand lift in awareness and being are the core drivers of marketing a seamless system that coordinates approach, yet the adoption in also leverage the services to government support is
viewed favorably. It would be strategy. The great news is e-commerce, physical retail, China is widespread across promote products or retail unparalleled, demonstrated
interesting to reflect on this data that much of the required
logistics, and data. For example, many categories, from face locations with timely offers or by the speed of retail
from a China market perspective. infrastructure brands need to
The assumption we would make develop winning strategies is Starbucks launched its new cream to cars. In just one product release information. technology adoption and
is that with mobile transactions already available today and Starbucks Reserve Roastery store month during the summer Estée Lauder ran a campaign the emergence of “cashless
being a prime driver of sales in mobile is the accelerant they are in Shanghai with an augmented of 2017, 35 million people targeting Chinese outbound cities” across China. The
China (both online and offline) looking for to ignite growth. reality app created in collaboration watched live streaming on travelers for DFS, the airport mobile experience loop is
we would recommend building with Alibaba. When shoppers aim e-commerce platform Taobao. retail chain. Leveraging now complete and China is
increasingly purchase-motivated
their mobile device in the store shopper online behavior the world leader.
mobile campaigns in the future.
they receive related information to (travel bookings, search
enhance their in-store experience. history, make-up preferences),
An Alibaba app enables shoppers Estée Lauder then utilized
in Hema grocery stores to look up LBS to target travelers at their
prices and information, place orders destination with a coupon for
for home delivery, and order food giveaway redemption with
from the in-store eateries. cosmetics purchases.
220 221
Media Standards
RAPID GROWTH,
It has been a challenging year for brands and their agencies.
Brands typically operate in hyper-competitive and low
DIGITAL MEDIA
growth markets. Growth is stronger in China, but consumer
behavior changes more rapidly and even unexpectedly. Patrick Xu
CEO
And in these difficult circumstances brands are expected to
GroupM & WPP, China
deliver positive short-term results. Patrick.Xu@groupm.com
ADD PROBLEMS Meanwhile, legacy media continues Digital investment growth is expected diversified marketing environment, it is
AND POSSIBILITIES
to be challenged by audience at 11.3 percent in 2018; its share will more important than ever for agencies
fragmentation and competition from increase from 34.1 percent in 2017 to to have the capability of providing
digital and mobile platforms. Even the 36.4 percent in 2018, globally. In China, integrated services.
digital giants are grappling with their digital has already surpassed TV. Data
direct sales and long-term success. and technology plays an indispensable MARKETPLACE INTEGRITY
role in this process. For every dollar
And sitting in the middle of this difficult that migrates from legacy to digital A well-developed digital media is a
market environment—between strained media, GroupM estimates 25 cents two-edged sword. It makes mass and
clients and stressed media partners— goes to technology and data. scalable marketing possible but also
AGENCIES MUST NAVIGATE CHALLENGES

are the agencies. causes the existence of invalid traffic
As consumer attention continues and risks, which pose a threat to brand
The agencies witnessed and worked fragmenting across platforms, reputation and market order.
WITH CREATIVITY AND INTEGRITY through the difficulties of 2017. And

the challenges have clarified the
many see virtue in one of the oldest
advertising media, Out-of-Home, which The positive side is that we can
responsibility agencies have for is also becoming more data-informed, adopt and invent technology quickly
helping their brands navigate a difficult digital, and versatile. The combination in China, we can learn from the
environment and emerge with success of location data with purchase, social mistakes that the rest of the world
and integrity. media and viewing behavior presents has made and avoid them in this
an increasingly compelling proposition. market. The challenge that we have
CHANGING MEDIA is “measurability.” How much of the
As digital ad spending grows, it is total media businesses are we able
GroupM’s latest forecast predicts a essential for media agencies to become to measure and see? In Europe and
more positive outlook for 2018, with stronger digital marketing players. in the United States, measurability is
global ad investment to grow by 4.3 Driving the move by acquiring a digital above 90 percent, so they can control
percent or $23 billion. Incremental agency is a one strategy. However, for more of a market, but the number in
growth in China will reach $4.3 billion, a media agency with ambitions, the key China is much lower. If you can see or
second only to the US. But media’s is to enhance core competitiveness and understand more of the market, you
share war gets even fiercer. build internal capabilities. are able to control the quality in that
market.
Globally, television investment will grow Agencies with a vision for the
GroupM is the leading global media 2.2 percent in 2018, but traditional TV future have invested in themselves,
investment management company will lose one share point this year and using multi-level transformations of
for WPP’s media agencies including another next. Data has changed TV organizational structure, formidable
Mindshare, MediaCom, Essence, m/SIX, advertising. Addressable TV and free technical teams, and cutting-edge
and Xaxis. services to create their own marketing
over-the-top (OTT) internet access is
here and it is growing. “weapons.” In today’s fragmented,
www.groupm.com
222 223
Media Standards
“
Therefore, GroupM China launched
its Brand Safety Initiative in June
2017. It focuses on issues including
invalid traffic, “viewability,” the
opportunity for a brand to be seen,
and contextual brand safety. The A well-developed digital media is
a two-edged sword. It makes mass
initiative has won support from
multiple parties—including leading
advertisers, publishers, tech
measurement companies, and China
Media Assessment Council—to fight
and scalable marketing possible
for a safe, credible, and transparent
digital marketing environment. but also causes the existence of
For the past year, we’ve believed
that enough is understood and
invalid traffic and risks, which
quantified about the issues for
advertisers to make informed pose a threat to brand reputation
decisions about the real value of
inventory, especially in the field of
invalid traffic. Fraud is a crime and
and market order.
“
we have to get that out of the digital
business as soon as we possibly can.
As marketers, in coordination with

our publisher partners, we believe
agency leadership means operating
across the whole media landscape
to develop the most integrated
campaigns, as well as to help shape
standards, measurement, and
integrity.
224 225
Going Global
LOCAL INSIGHT
The Chinese government’s $4 trillion USD global expansion
program–One Belt, One Road–is opening up trading routes
not seen since the early days of the Silk Road. With such a
HELPS REALIZE
massive infrastructural investment, it goes without saying
that Chinese brands are expected to follow the lead and Bryce Whitwam
CEO
take advantage of this amazing trading platform.
Wunderman China
Bryce.Whitwam@wunderman.com
ONE BELT,
Going global for any brand leaving its it to local distributors as many do, but Global social media can also be
home turf is tough, but it is especially what results is often inconsistency of centrally created, monitored and
challenging for Chinese brands that products and services. Thanks to travel, measured. Off-shore production
ONE ROAD
have grown accustomed to their information, and technology, brands hubs can create multiple low-cost
own local market and the continuing are now more global than ever, making content for hundreds of alternatives
expansion of China’s growing middle consistency vital for business growth in different languages. Wunderman
class. And it’s not just challenges and success. Starbucks customers currently operates Dell’s consistent
in different distribution models, the in Beijing will now expect the same global marketing efforts creating
entire global social media landscape cappuccino in Brussels, and a Huawei over 50,000 annual projects across
is completely different. Western P10 should make you feel cool, whether 70 markets. Centralization not only
EXPANSION
consumers often learn, interact with, you’re in Spain or Shandong. helps consistency, it can also reduce
and purchase their products differently marketing costs. Dell’s production
than their Chinese counterparts. For Chinese brands to remain costs have been reduced by 25
consistent, they have to work harder to percent per year for the past six years.
Competition is fierce abroad for control their brands’ image, message,
Chinese brands in markets where price, and promotions. The good In summary, marketing technology
Western consumers are less likely to news is that technology allows for has really made the dream of One
switch brand. It’s no wonder Chinese automation and reporting visibility that Belt, One Road a much closer reality,
brands often enter foreign markets aids in control, all happening from a enabling brands to grow quickly and
WITH TECHNOLOGY, IT’S NEVER BEEN

as the low-cost price alternative. A central source. Real time data from with consistency. But there’s still no
cost brand entry strategy also plays CRM platforms and web traffic make substitute for local market expertise,
to Chinese brands’ long history of it a viable solution to ensure supply and while market automation helps, it
EASIER TO BUILD A GLOBAL BRAND controlling the manufacturing chain, but

in the long run this isn’t profitable.
chain and customer connections are
visible from anywhere. Agencies like
doesn’t solve everything. Fortunately,
WPP’s offices in 113 countries are
Wunderman help brands like adidas run well placed to help Chinese brands
Chinese brands can always 7000 campaigns for 8 brands across connect with the local consumer in the
decentralize their marketing and leave 36 different markets, all through a right way.
single operating center.
A leading global digital agency,

Wunderman combines creativity and data
into work that inspires consumers to take
action and delivers results for brands.
www.wunderman.com
226 227
C H I N ES E EL E CT R I C CA R S A N D M A S S T R A N S IT. . .
C O M BAT U R BA N P O L LU TI O N A N D CO N G ESTI O N .
FOSHAN, GUANGDONG
RESOURCES
06 RESOURCES TOP 100 Most Valuable Chinese Brands 2018
IMPORTANCE OF BRAND Meaningful enables brand owners, the investment
BRANDZ™
In any category, these brands appeal community and others to evaluate and
Brands embody a core promise of more, generate greater “love” and compare brands and make faster and
values and benefits consistently meet the individual’s expectations and better-informed decisions.
delivered. Brands provide clarity needs.
and guidance for choices made by Brand valuation also enables
companies, consumers, investors and Different marketing professionals to quantify
BRAND
other stakeholders. Brands provide These brands are unique in a positive their achievements in driving business
the signposts we need to navigate the way and “set the trends,” staying growth with brands, and to celebrate
consumer and B2B landscapes. ahead of the curve for the benefit of these achievements in the boardroom.
the consumer.
At the heart of a brand’s value is its DISTINCTION OF BRANDZ™
VALUATION
ability to appeal to relevant customers Salient
and potential customers. BrandZ™ They come spontaneously to mind as BrandZ™ is the only brand valuation
uniquely measures this appeal and the brand of choice for key needs. tool that peels away all of the financial
validates it against actual sales and other components of brand value
performance. Brands that succeed in IMPORTANCE OF BRAND VALUATION and gets to the core–how much
creating the greatest attraction power brand alone contributes to corporate
METHODOLOGY
are those that are: Brand valuation is a metric that value. This core, what we call Brand
quantifies the worth of these powerful Contribution, differentiates BrandZ™.
but intangible corporate assets. It
The brands that appear in

INTRODUCTION THE VALUATION PROCESS
this report are the most
valuable Chinese brands. The BrandZ™ valuation methodology Globally, our research covers over 3.6 STEP 1: We multiply Corporate Earnings by the It’s similar to the calculation used by
They were selected for can be uniquely distinguished from million consumer interviews and more
CALCULATING FINANCIAL VALUE Attribution Rate to arrive at Branded financial analysts to determine the
its competitors by the way we use than 120,000 different brands in over Earnings, the amount of Corporate market value of stocks (Example: 6X
inclusion in the BrandZ™
consumer viewpoints to assess brand 50 markets. This intensive, in-market Earnings attributed to a particular earnings or 12X earnings). Information
Top 100 Most Valuable Part A
equity, as we strongly believe that how consumer research differentiates brand. If the Attribution Rate of a supplied by Bloomberg data helps us
We start with the corporation. In some
Chinese Brands 2018 based consumers perceive and feel about the BrandZ™ methodology from
cases, a corporation owns only one brand is 50 percent, for example, calculate a Brand Multiple. We take
a brand determines its success and competitors that rely only on a panel then half the Corporate Earnings are the Branded Earnings and multiply that
on the unique and objective brand. All Corporate Earnings come
failure. We conduct worldwide, on- of “experts,” or purely on financial and identified as coming from that brand. number by the Brand Multiple to arrive
BrandZ™ brand valuation from that brand. In other cases, a
going, in-depth quantitative consumer market desktop research. at what we call Financial Value.
corporation owns many brands, and
methodology that combines research, and build up a global picture
we need to apportion the earnings of Part B
of brands on a category-by-category Before reviewing the details of this What happened in the past—or even
extensive and on-going the corporation across a portfolio of
and market-by-market basis. methodology, consider these three what’s happening today—is less
consumer insights with brands.
fundamental questions: why is brand important than prospects for future
rigorous financial analysis. important; why is brand valuation
To make sure we attribute the correct earnings. Predicting future earnings
important; and what makes BrandZ™ requires adding another component to
portion of Corporate Earnings to each
the definitive brand valuation tool? our BrandZ™ formula. This component
brand, we analyze financial information
from annual reports and other sources, assesses future earnings prospects as
such as Kantar Consulting and Kantar a multiple of current earnings. We call
Worldpanel. This analysis yields a this component the Brand Multiple.
metric we call the Attribution Rate.
234 235
BrandZ™ Brand Valuation Methodology
WHY BRANDZ™ IS THE DEFINITIVE

BRAND VALUATION METHODOLOGY
STEP 2: being Meaningful (a combination of STEP 3:
CALCULATING BRAND emotional and rational affinity), being CALCULATING BRAND VALUE
Different (or at least feeling that way
CONTRIBUTION All brand valuation methodologies are experts who contribute their opinions. WHAT’S THE BRANDZ™ BENEFIT?
to consumers), and being Salient Now we take the Financial Value and similar—up to a point. The Brand Finance methodology
(coming to mind quickly and easily as multiply it by Brand Contribution,
So now we have got from the total employees a complicated accounting The BrandZ™ methodology produces
the answer when people are making which is expressed as a percentage
value of the corporation to the part All methodologies use financial method called Royalty Relief Valuation. important benefits for two broad
category purchases). of Financial Value. The result is
that is the branded value of the research and sophisticated audiences.
Brand Value. Brand Value is the
business. But this branded business
We identify the purchase volume and
mathematical formulas to calculate WHY IS THE BRANDZ™
value is still not quite the core that we dollar amount a brand contributes current and future earnings that can
any extra price premium delivered by to the overall value of a corporation.
METHODOLOGY SUPERIOR? • Members of the financial
are after. To arrive at Brand Value, we be attributed directly to a brand rather community, including analysts,
these brand associations. We call this Isolating and measuring this intangible
need to peel away a few more layers, than to the corporation. This exercise shareholders, investors and C-suite
unique role played by brand, Brand BrandZ™ goes much further and
such as the in-market and logistical asset reveals an additional source produces an important but incomplete executives, depend on BrandZ™
Contribution. is more relevant and consistent.
factors that influence the value of the of shareholder value that otherwise picture. for the most reliable and accurate
Once we have the important, but
branded business, for example: price, would not exist. brand value information available.
Here’s what makes BrandZ™ so unique incomplete, financial picture of
availability, and distribution. What’s missing? The picture of the
and important. BrandZ™ is the only the brand, we communicate with
brand at this point lacks input from consumers, people who are actually • Brand owners turn to BrandZ™
brand valuation methodology that
What we are after is the value of the the people whose opinions are most to more deeply understand the
obtains the customer viewpoint by paying for brands every day, regularly
intangible asset of the brand itself that important—the consumers. This is causal links between brand
conducting worldwide on-going, and consistently. Our on-going, in-
exists in the minds of consumers. That where the BrandZ™ methodology and strength, sales and profits, and
in-depth and consistent quantitative ELIGIBILITY CRITERIA depth quantitative research includes
means we have to assess the ability the methodologies of our competitors’ to translate those insights into
consumer research, online and face- 3.6 million consumers and more than
of brand associations in consumers’ part company. strategies for building brand equity
to-face, building up a global picture of The brands ranked in the BrandZ™ 120,000 brands in over 50 markets
minds to deliver sales by predisposing Top 100 Most Valuable Chinese and fueling business growth.
brands on a category-by-category and worldwide. We have been using the
consumers to choose the brand or pay
market-by-market basis. Our research Brands 2018 report meet all of HOW DOES THE COMPETITION same framework to evaluate consumer Since we have been using the
more for it.
has grown to cover 3.6 million these eligibility criteria: DETERMINE THE CONSUMER VIEW? insights since we first introduced same framework to measure these
consumers and more than 120,000 the BrandZ™ brand building platform insights, this enables historical and
We focus on the three aspects of • The brand was originally cross-category comparisons.
different brands in over 50 markets Interbrand derives the consumer in 1998, which enables historical
brands that we know make people created by a Mainland Chinese
since we first introduced BrandZ™ in point of view from different sources understanding of changes in brand
buy more and pay more for brands: enterprise;
1998. like primary research and panels of equity.
• The brand is owned by a
publicly traded enterprise, or
whose financials are audited
by major global accounting
practice and published in the
public domain; and
• Bank brands derive at least 20

percent of earnings from retail
banking.
236 237
BrandZ™ genome mapping

The science behind our art
One of humanity’s greatest recent achievements was

successfully sequencing our own genome in 2003, revealing
the key building blocks of what makes us each unique.
NOW BRANDZ™ GIVES

YOU THE ABILITY TO DO
THE SAME FOR YOUR
BRAND OF CHOICE
The BrandZ™ Brand Genome visualizes your
brand’s “genome” on a page, with all the
genome sequence measures providing an
instant overview of your brand.
THE ULTIMATE TOOL FOR A NEW

BUSINESS PITCH AND A LOT MORE
Brand Genome is a unique BrandZ™ tool, exclusive to WPP. It’s free,
available 24/7 and takes just seconds to create.
Visit http://genome-measures.wppbrandz.com/ where you will be

able to find out about each of the BrandZ™ measures, what they are,
how they are calculated and how you can access a report which
contains the measure.
To download a sample genome map visit

http://wppwrap.com/bg.pdf
238 239
BrandZ™ genome mapping

The science behind our art
BRANDZ™
BRAND BUILDING TOOLS
Test Data: 33057 en 271
Prepared for Travyn Rhall October 2015
STRENGTHS
AND PERSONALIZED
Tesco Bank
WEAKNESSES
McDonald’s
Fast Food
Italy
2010
Brand Summary
OPPORTUNITIES
Growth Potential
PUBLICATIONS
Loyalty
This is a strong brand with good current

potential. The marketing mission should be
maintaining the brand’s strengths and
exploring new ways to apply it. Understand the
sources of current strength so that it can be
efficiently maintained. Check you have taken
THREATS
the brand’s appeal to all possible consumers.
Can you export the brand to new products,
categories or markets? Ensure that the brand
stays fresh and relevant to the consumers who
already appreciate it.
Powered by
InnovationZ CharacterZ PitchDoctor

Only available via your WPP Agency
Discover real-time innovation and Brand personality analysis Everything you need to know
start up ideas sourced via the deepens brand understanding. about your brand on one page.
exclusive Springwise global network
of 20,000 spotters. Need an interesting and stimulating Ever wished that you could instantly
way to engage with your clients? analyze every one of the 5.1 billion
InnovationZ packages provide real Want to impress them with your individual data points included in
time access to the latest innovation understanding of their brand? A new BrandZ™? All the brand metrics,
and startup ideas and inspiration from and improved CharacterZ can help! It interrelationships, including TrustR,
across the globe to ensure you are up is a fun visual analysis, underpinned ValueD and then seamlessly use this to
to date and ahead of your competition. by the power of BrandZ™, which allows pinpoint an individual brand’s Strengths,
detailed understanding of your brand’s Weaknesses, Opportunities and Threats
personality. in one easy to digest page? Well now
you can.
Brazil | Soft Drinks (carb and non-carb) |

2017
Prepared January 2018
Produced by Powered by
Vitality Quotient (vQ) TrustR RepZ

vQ introduces a new framework to Engaging Consumers in the Maximizing Brand and
effectively diagnose a brand’s health. Post-Recession World. Corporate Integrity.
A high vQ score has a direct Trust is no longer enough. Strong Major brands are especially vulnerable
relationship with a brand’s brands inspire both Trust (belief in to unforeseen events that can quickly
performance and its ability to grow the brand’s promise, developed threaten the equity cultivated over
its brand value. vQ looks at five key over time) and Recommendation a long period of time. But those StoryTeller SocialZ WebZ
areas of a brand’s health: Purpose, (current confirmation of that promise). brands with a better reputation are
Innovation, Communication, Brand This combination of Trust plus much more resilient. Four key factors An interactive data visualization tool See the real-time social A web traffic story for your brand.
Experience, and Love. Ideal for new Recommendation results in a BrandZ™ drive Reputation: Success, Fairness, to allow anyone to build story-led landscape of brands, instantly.
business pitches, brainstorming metric called TrustR. Responsibility, and Trust. Find out how insights. WebZ helps you understand your
sessions and creative development. your brand performs. SocialZ is the social media data brand’s digital journey! Through
See how your brand performs against Its intuitive interactive nature means visualization product from BrandZ™ analyzing how traffic is driven to
its competitors. that you can see as little or as much that enables you to easily depict, your brand’s website, it will help
of the detail as you wish and navigate visualize, and present a real-time view you understand your audience
seamlessly to content of interest. of the social landscape surrounding demographics and gain insights
any brand. into viewer trends.
240 241
Reports and Apps powered by BrandZ™
GOING
GLOBAL?
WE WROTE THE BOOK
BrandZ™ Top 20 Most Valuable BrandZ™ Top 30 Most Valuable BrandZ™ Top 50 BrandZ™ Top 30 Most Valuable
Saudi Arabian Brands 2017 Spanish Brands 2017 Most Valuable UK Brands 2017 Italian Brands 2018
BrandZ™ The Ultimate Resource for Brand Knowledge and Insight As Saudi Arabia embarks This new report identifies As the UK embarks on Italy is home to some of the
on an ambitious program of the key forces driving growth a tumultuous period of most recognizable and most
transformation, this ranking in one of the largest, most transformation and uncertainty, coveted brands on the planet.
explores the country’s most influential and dynamic markets this debut ranking explores In this first ever Italian BrandZ™
Our BrandZ™ country reports contain unparalleled market knowledge, insights, and thought
accomplished brands, analyzes in Western Europe, built the UK’s most iconic brands, ranking, we look at how
leadership about the world’s most exciting markets. You’ll find, in one place, the wisdom of WPP their success and identifies on centuries-old strengths, successes, and identifies the vision, passion, know-how and
brand building experts from all regions, plus the unique consumer insights derived from our the key forces that are driving and adapting to new and key forces driving growth in determination have turned
growth in this market. challenging conditions. this market. small businesses into national
proprietary BrandZ™ database. treasures.
brandz.com/region/saudi- brandz.com/region/spain brandz.com/region/uk
arabia brandz.com/region/italy
If you’re planning to expand internationally, BrandZ™ country reports are as essential as a passport.
BrandZ™ Top 100 BrandZ™ Top 50 Most Valuable BrandZ™ Top 50 Most BrandZ™ Top 50 Most Valuable BrandZ™ Top 50 Most Valuable BrandZ™ Top 100 Most BrandZ™ Top 50 Most Valuable
Most Valuable Global Latin American Brands 2017 Valuable Indian Indonesian Brands 2017 French Brands 2018 Valuable US Brands 2018 German Brands 2018
Brands 2017 Brands 2017
The report profiles the most Now in its third year, this France is one of the largest While America is in the In a world rippling with
This is the definitive global valuable brands of Argentina, This in-depth study analyzes study analyzes the success of economies in the EU, seventh midst of a unique economic uncertainty, we have come to
brand valuation study, Brazil, Chile, Colombia, Mexico the success of powerful Indonesian brands, examining largest in the world, and has and political period, US regard Germany as the ballast
analyzing key trends driving and Peru and explores the and emerging Indian the dynamics shaping this proved itself as being adept at brands remain focused—and that keeps Europe steady. This
the world’s largest brands, socio-economic context for brands, explores the Indian fast-developing market, and managing change. This new continue to thrive. This report inaugural German BrandZ™
exclusive industry insights, brand growth in the region. consumer’s shopping habits, offering insights for building report explores a landscape demonstrates how consumers ranking looks at the invention
thought leadership, B2B trends and offers insights for building valuable brands. in transition, and how its rich reward brands that evolve and creativity behind the
and a look at emerging brands. valuable brands. heritage and expertise can and deliver meaning over country’s leading brands.
brandz.com/report/latin- brandz.com/report/ help define the path for French time, while also welcoming
brandz.com/region/global america/2017 brandz.com/report/ indonesian/2017 brands in the future. innovative game-changing brandz.com/region/germany
india/2017 brands.
brandz.com/region/france
brandz.com/region/us
242 243
LOOKING EAST
IN-DEPTH BRAND-BUILDING
INTELLIGENCE ABOUT
TODAY’S CHINA
The BrandZ™ China Insights Reports
Unmasking the Individual Chinese Investor The Power and Potential of the Chinese Dream
This exclusive report provides the first detailed examination of The Power and Potential of the Chinese Dream is rich with
The opportunity to build brands in China is greater than ever. But so are the challenges. Chinese investors, what they think about risk, reward and the knowledge and insight, and forms part of a growing library
brands they buy and sell. This will help brand owners worldwide of WPP reports about China. It explores the meaning
understand market dynamics and help build sustainable value. and significance of the "Chinese Dream" for Chinese
The fastest growth is happening deep in the country, in less well-known cities and towns. consumers as well as its potential impact on brands.
Consumers are more sophisticated and expect brands to deliver high-quality products and brandz.com/article/unmasking-the-individual-chinese-
investor-report brandz.com/article/chinese-dream-report
services that show real understanding of local market needs.
WPP has been in China for

over 50 years. We know
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help you avoid mistakes The Chinese Golden Weeks in Fast Growth Cities The Chinese New Year in Next Growth Cities
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Using research and case studies, the report examines the The report explores how Chinese families celebrate this
examples of successful shopping attitudes and habits of China’s rising middle class ancient festival and describes how the holiday unlocks
brand builders. and explores opportunities for brands in many categories. year-round opportunities for brands and retailers,
especially in China’s lower-tier cities.
BrandZ™ Top 100 Most BrandZ™ Top 50 Chinese
brandz.com/article/chinese-golden-weeks-report
Valuable Chinese Brands 2018 Global Brand Builders 2018
brandz.com/article/chinese-new-year-report
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brandz.com/region/china
244 245
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246 247
WPP Company Contributors
THESE COMPANIES CONTRIBUTED

KNOWLEDGE, EXPERTISE, AND
PERSPECTIVE TO THE REPORT
BAV Consulting is a global consultancy Geometry Global is the world’s Grey is a global advertising agency GroupM is the leading global media Hill+Knowlton Strategies is a J. Walter Thompson Worldwide is a
agency specializing in brand marketing largest and most international brand specializing in creative advertising and investment management company public relations and integrated global marketing communications
strategies. BAV Consulting helps activation and shopper marketing building brand-consumer relationships for WPP’s media agencies including communications agency with more company that specializes in
businesses assess, grow, and direct agency. We help brands thrive in an for businesses. The agency’s Mindshare, MediaCom, Essence and than 85 offices around the globe. H+K providing brand building strategies
their brands as strategic corporate Omni Channel world by shaping and expertise extends to providing brand m/SIX, and the outcomes-driven China is home to over 200 creative for businesses. The company was
assets by using the proprietary changing people’s behavior at pivotal ideas and strategies, brand planning, programmatic audience company, strategists, content creators, digital established nearly 150 years ago and
BrandAsset Valuator (BAV) models moments along the purchase decision creative development, and production. Xaxis. Responsible for more than US experts, and storytellers experienced currently has more than 200 offices in
and metrics. The agency’s brand journey, with the goal of inspiring With established offices in over 83 $108B in annual media investment in helping clients strengthen brands, over 90 countries, employing nearly
measurement combines the emotional people to buy well. With teams in 56 countries, Grey operates over five by some of the world’s largest reputations, and bottom lines. Whether 12,000 marketing professionals. J.
aspects of brands with the quantitative markets around the world, Geometry geographical units: North America, advertisers, GroupM agencies deliver it is corporate communications, Walter Thompson’s service network
measures of finances. BAV Consulting Global has expertise in physical retail, Europe, Middle East & Africa (EMEA), an advantage to clients with unrivaled digital communications, or innovative includes digital transformation,
has been measuring brands for nearly e-commerce, experiential, branding & Asia-Pacific and Latin America. The insights into media marketplaces marketing communication campaigns, activation & commerce, and
25 years, and today over 45,000 design and consultancy. agency ranks amongst world’s top and consumer audiences. GroupM H+K’s in-depth local knowledge, intelligence.
brands have been evaluated on 75 organizations within the industry. enables its agencies and clients with coupled with global reach, ensures
metrics, among 900,000 respondents trading expertise, data, technology the team are well-placed to support
in over 45 countries. and an array of specialty services Chinese companies going global.
www.geometry.com including addressable TV, content The agency’s client portfolio includes www.jwt.com
www.grey.com and sports. GroupM delivers unrivaled some of the best known Chinese
Gareth Ellen marketplace advantage to its clients, brands including Huawei, Ping An, Carter Chow
www.bavconsulting.com APAC Planning Director and China COO June Lyloc stakeholders and people. Wanda, Envision, HNA, Haier, and TCL. CEO, China
Gareth.Ellen@geometry.com Grey Group CEO, China Carter.Chow@jwt.com
Michael Sussman June.Lyloc@grey.com
CEO
Michael.Sussman@yr.com www.groupm.com www.hkstrategies.com
Patrick Xu QC Liang
CEO, GroupM and WPP, China President and CEO, China
Patrick.Xu@groupm.com QC.Liang@hkstrategies.com
248 249
THESE COMPANIES CONTRIBUTED

KNOWLEDGE, EXPERTISE, AND
PERSPECTIVE TO THE REPORT
MediaCom is the Content + Mindshare is a global media company Ogilvy is one of the largest marketing WAVEMAKER is a brand-new media, Wunderman is Creatively Driven. Y&R is a global advertising and
Connections agency, that specializes that aims to be clients’ lead business communications company in the content and technology agency Data Inspired. A leading global digital communications that provides
in planning and buying across Paid, partner, to grow their business and world. It was named the Cannes that evolved from merging MEC and agency, Wunderman combines analytical knowledge and integrated
Owned, and Earned media to help drive profitability through adaptive and Lions Network of the Year for five Maxus in June 2017. We are FUTURE creativity and data into work that marketing solutions to businesses
clients optimize their content and inventive marketing. This is achieved consecutive years, 2012, 2013,2014, MAKERS. Bound by our Purchase inspires consumers to take action for more than 30 years. Y&R
connected systems. The company through speed, teamwork, and 2015 and 2016; the EFFIE’s World Journey obsession, we help clients and delivers results for brands. specializes in advertising, digital and
has 125 offices across 100 countries provocation because in today’s world Most Effective Agency Network in translate audience behaviors and Wunderman has been widely social media, sales promotion, and
around the world, employing around everything begins and ends in media. 2012, 2013, and 2016; and AdWeek’s insights into smart decisions today, for recognized for its work. Forrester brand identity consulting. Y&R is
7000 people. MediaCom was named Mindshare create new things and has Global Agency of the Year in 2016. a prosperous tomorrow. We integrate Research named us a leader in part of WPP, the largest advertising
Network of the Year 2017 at the fun doing it. Established in Asia in media, content and technology into marketing database operations groups in the world.
Global M&M Awards, at the Festival 1997, now Mindshare operates in 116 the best operational system for and a strong performer in customer
of Media Global 2017, and was named offices in 86 countries with billings of marketing communication. Individually engagement strategy. Headquartered
Campaign Media Network of the Year $35 billion. www.ogilvy.com for each client. For valid decisions, in New York, we have 9,200 creatives,
2017. for the agility of brands and for a data scientists, strategists and www.yr.com
Chris Reitermann dynamically-inspiring communication. technologists in 200 offices in 70
Co-CEO, Ogilvy Asia Pacific markets. Wunderman is a ‘team first’ Annie Boo
www.mindshareworld.com CEO, Ogilvy China culture committed to creating an CEO, China
www.mediacom.com Chris.Reitermann@ogilvy.com environment where people come to do Annie.Boo@yr.com
Amrita Randhawa www.wavemakerglobal.com the best work of their careers.
Rupert McPetrie CEO, China
CEO, China Amrita.Randhawa@ Gordon Domlija
Rupert.Mcpetrie@mediacom.com mindshareworld.com CEO, China
Gordon.Domlija@wmglobal.com www.wunderman.com
Bryce Whitwam
CEO, China
Bryce.Whitwam@wunderman.com
250 251
IN CHINA
Kantar is one of the world’s leading data, insight and consultancy companies. Working together across
the whole spectrum of research and consulting disciplines, its specialist brands, employing 30,000
people, provide inspirational insights and business strategies for clients in 100 countries. Kantar is part
of WPP and its services are employed by over half of the Fortune Top 500 companies.
In China, more than 1,800 Kantar Kantar Consulting is a specialist Kantar Millward Brown specialize Kantar TNS is one of the world’s Kantar Worldpanel is the global Lightspeed is a leading digital data
employees offer expert service to growth consultancy. With over 1,000 in advertising, marketing largest research agencies with experts expert in shoppers’ behavior. Through collection specialist, on a mission to
clients through specialized brands analysts, thought leaders, software communications, media, digital and in over 90 countries. With expertise in continuous monitoring, advanced help clients discover truth through
including Kantar TNS, Kantar Millward developers and expert consultants brand equity research, and work with innovation, brand and communication, analytics and tailored solutions, data. Our 700 employees in 14
Brown, Kantar Consulting, Kantar we help clients develop and execute 90 percent of the world’s leading shopper activation and consumer Kantar Worldpanel inspires successful countries are passionate about
Health, Kantar Media CIC, Kantar brand, marketing, retail, sales brands. The key area of company’s relationships they help their clients decisions by brand owners, retailers, boldly challenging the status quo
Worldpanel and Lightspeed. With and shopper strategies to deliver focus is brand strategy, creative identify, optimize and activate the market analysts and government to find faster, more creative ways of
local offices across China and a global growth. Kantar Consulting owns development, channel optimization moments that matter to drive growth organisations globally. With over 60 connecting brands and consumers.
network, we serve local, regional, and market leading assets including and brand performance. With offices for their business. years’ experience, a team of 3,500, From modernizing surveys via our
multi-national clients. PoweRanking, GrowthFinder, Global in 56 countries, Kantar Millward and services covering 60 countries Programmatic Gravity Network and
To learn more about how to obtain Monitor, RetaiI IQ, RichMix, XTEL Brown understands the importance directly or through partners, Kantar LifePoints mobile app, to amplifying
valuable insights applicable to your and Marketing, Insights and Purpose of both a global and local focus – and Worldpanel turns purchase behaviour the voice of the millennial through
business, contact: 2020. We track 1200 retailers understand consumers. We know www.tnsglobal.com into competitive advantage in markets VICE Voices, or leveraging our
globally, have purchase data on over brands that are meaningfully different as diverse as FMCG, impulse products, first party panel relationships and
JOYCE LEE 200 million shoppers and forecast capture more volume share, command Lynn Zhang fashion, baby, telecommunications and patented Honesty Detector Service
Business Development Leader, China social, cultural and consumer trends premiums and grow their value. Managing Director, China entertainment, among many others. to find the quality in the quantity of
Kantar across the world. Lynn.Zhang@tnsglobal.com data out there, we deliver the ‘buy
Joyce.Lee@kantar.com and why’ insights that power today’s
marketing decisions.
www.millwardbrown.com www.kantarworldpanel.com
You can also keep updated on the consulting.kantar.com
latest news and studies from the Chirantan Ray Jason Yu
Kantar network in China, and globally Bernhard Wessels Managing Director, China Managing Director, China www.lightspeedresearch.com
through our portal: Managing Partner, China Chirantan.Ray@ Jason.Yu@ctrchina.cn
Bernhard.Wessels@ kantarmillwardbrown.com Ben He
www.kantar.com kantarconsulting.com Senior Director, China
Ben.He@lightspeedresearch.com
252 253
06 RESOURCES
IN CHINA
We help build valuable brands
In Greater China, WPP companies To learn more about how to apply this
(including associates) generate expertise to benefit your brand, please
revenues of $1.4 billion with almost contact any of the WPP companies
13,000 people in Beijing, Shanghai, that contributed to this report or
Guangzhou and many other cities and contact:
provinces.
PATRICK XU,
WPP is the world’s largest Chief Executive Officer,
communications services group with WPP China
billings of US$72 billion and revenues Patrick.Xu@wpp.com
of US$20 billion. Through its operating
companies, the Group provides a JULIANA YEH
comprehensive range of advertising Head of Corporate Communications,
and marketing services including WPP Asia Pacific
advertising & media investment Juliana.Yeh@wpp.com
management; data investment
management; public relations & public For further information about WPP
affairs; branding & identity; healthcare companies worldwide, please visit:
communications; direct, digital, www.wpp.com/wpp/companies
promotion & relationship marketing
and specialist communications. The or contact:
company employs over 200,000
people (including associates and DAVID ROTH
investments) in over 3,000 offices CEO,
across 112 countries. The Store WPP, EMEA and Asia
David.Roth@wpp.com
254
WPP Company Brand Building Experts
Hi,
I’m RoZie, the BrandZ™ Chatbot.
THESE INDIVIDUALS FROM WPP
COMPANIES PROVIDED ADDITIONAL Ask me about brands. I can
THOUGHT LEADERSHIP, RESEARCH, answer your questions—quickly.
ANALYSIS, AND INSIGHT TO THE REPORT
RoZie is here to answer all your The TEXT-BASED ROZIE can be accessed via
questions about brands, brand value, rozie.wppbrandz.com, where you will be able
client leaders and brand growth. to type a question to get a response.
You can ask RoZie questions about the

most valuable global brands from the What is Amazon’s
BrandZ™ Global Top 100 2017 report performance this year?
Gareth Ellen Natalie Babbage Lyndon Cao Mickey Chak Chen Yue Chris Gagg
and RoZie will be able to answer them
Geometry Kantar Worldpanel Ogilvy Ogilvy Kantar TNS Ogilvy for you, in an instant, by using Artificial
Amazon is positioned at
Intelligence. number 4 with a value of
$139,286 million
Unlike most chatbots, which are either

text-based or voice-based, RoZie can do
both. The VOICE-BASED ROZIE can be accessed by
Daphne Hsieh Scott Kronick Joyce Lee Rachel Lee Sijia Lin Diana Tan downloading the Alexa skill for your Amazon Echo /
Kantar Millward Brown Ogilvy Kantar Kantar Worldpanel Kantar Millward Brown Kantar Health To find out more about RoZie, please Dot device. You will be able to ask a question to get
visit rozie.wppbrandz.com where you will your answer.
be able to access:
RoZie, who is the

» The recently launched RoZie WPP global client
text-based chatbot leader for Unilever?
Enbo Wang William Wei Bryce Whitwam Anthony Wong Patrick Xu Han Yang
Kantar Consulting Kantar Millward Brown Wunderman WPP GroupM / WPP Kantar Consulting » A full list of FAQs, hints & tips
The WPP global client
and other resources leader for Unilever is
Peter Dart
» RoZie for Amazon Echo / Dot
download instructions
» Current information about RoZie is constantly learning.

Jason Yu Wenpeng Zhao the latest updates Check rozie.wppbrandz.com
Kantar Worldpanel Kantar TNS
regularly, and RoZie will help
you keep your own brand
knowledge up-to-date.
256 257
BrandZ™ China Top 100 Team
THESE INDIVIDUALS CREATED THE REPORT,

With special thanks and appreciation to:
Richard Ballard, Anna Blender, Sarah Cousins, Katherine
Dickinson, Kimberley Jane Fitzsimmons, Anthony Marris,
PROVIDING RESEARCH, VALUATIONS,

Willow Huang, Deyshim Murad, Maggie Peng, Judit Stöckl,
Juliana Yeh and Bing Zhang
ANALYSIS AND INSIGHT, EDITORIAL,

PHOTOGRAPHY, PRODUCTION,
MARKETING AND COMMUNICATIONS
AMANDINE BAVENT JESSICA CHEN ELSPETH CHEUNG LUCY EDGAR DAVID ROTH KEN SCHEPT RAAM TARAT IGOR TOLKACHEV
Amandine Bavent is a Heading Marketing and Elspeth Cheung is the Lucy Edgar is the Global David Roth is the CEO of the Ken Schept is a professional Raam Tarat is the Global Igor Tolkachev is a part of
BrandZ™ Valuation Director Communications for Kantar Global BrandZ™ Valuation Marketing Manager at Store WPP for Europe, the writer and editor specializing Project Manager for The Store WPP’s EMEA and
for Kantar Millward Brown. Millward Brown in China, Director for Kantar Millward Kantar Millward Brown Middle East, Africa and Asia, in reports and books about BrandZ™ at Kantar Millward Asia team and coordinates
She manages the brand Jessica is also responsible Brown. She is responsible where she is responsible Chairman of the BAV Group, brands and marketing. He Brown. He managed BrandZ™ worldwide projects
valuation projects for for the marketing execution for valuation, analysis, client for the PR, marketing and and leads the BrandZ™ helped develop WPP’s production of the BrandZ™ and partnerships.
BrandZ™. Her role involves of the China BrandZ™ management and external communications on the worldwide project. Prior extensive library of global Top 100 Most Valuable
conducting financial campaign. communication for the BrandZ™ projects. to joining WPP David was publications and has Chinese Brands 2018
analysis, researching brands BrandZ™ rankings and other main Board Director of the reported on the international report, as well as marketing
and performing valuations. ad hoc brand valuation international retailer, B&Q. retail sector as an editor with communications for other
projects. a leading US business media BrandZ™ projects.
publisher.
MARTIN GUERRIERIA SOPHIA HUANG CECILIE ØSTERGREN PAUL REIFFER PETER WALSHE DOREEN WANG MEIMEI WANG VIVIAN WANG
Martin Guerrieria is Global Sophia is an Account Cecilie Østergren is a Paul is a multi-award Peter Walshe is Global Doreen Wang is the Global Meimei is the Marketing Vivian has been taking care of
BrandZ™ Research Director Director at Kantar Millward professional photographer winning British Strategy Director of BrandZ™ Head of BrandZ™ at Kantar Manager of Kantar WPP’s corporate communications
at Kantar Millward Brown Brown, not only responsible based in Denmark. Cecilie photographer, who has and was involved in the Millward Brown, and a Millward Brown China, for China since 2008, responsible
and heads the consumer for BrandZ™ China analysis, specializes in documentary, travelled the world capturing creation of this brand equity seasoned executive with and has worked on for both internal and external
research component of but also for building a good consumer insight and people, commercial images and insight tool 20 years over 18 years experience BrandZ™ China since 2013, comms and other WPP initiatives;
BrandZ™. He is involved in network with Client Service portraits. She has travelled and limited edition fine art ago, and has contributed to in providing outstanding taking charge of PR and building up good relations
delivering the full suite of teams to embed BrandZ™ extensively in Europe, China, landscape photography. all the valuation studies and market research and brand communications with the Chinese government,
BrandZ™ research tools. learnings and case studies Brazil and other locations to developed BrandZ™ metrics, strategic consulting for management. media and key clients, and
to address client questions. photograph images for the including CharacterZ, senior executives in Fortune acting as a platform to enhance
BrandZ™ reports. TrustR, and RepZ. 500 companies in both the communications and cooperation
US and China. among WPP companies in China.
258 259
The BrandZ™ Brand Valuation Contacts
The brand valuations in the BrandZ™ Top 100 Most

Valuable Chinese Brands 2018 are produced by Kantar
Millward Brown using market data from Kantar Consulting
and Kantar Worldpanel, along with Bloomberg.
The consumer viewpoint is derived from the BrandZ™ database. Established

in 1998 and constantly updated, this database of brand analytics and equity
is the world’s largest, containing over 3.6 million consumer interviews
about more than 120,000 different brands in over 50 markets.
For further information about BrandZ™ contact any WPP Group company or:
DOREEN WANG
Global Head of BrandZ™
Kantar Millward Brown
+1 212 548 7231
Doreen.Wang@kantarmillwardbrown.com
ELSPETH CHEUNG
Global BrandZ™ Valuation Director
+44 (0) 207 126 5174
Elspeth.Cheung@kantarmillwardbrown.com
MARTIN GUERRIERIA
Global BrandZ™ Research Director
+44 (0) 207 126 5073
Martin.Guerrieria@kantarmillwardbrown.com
Bloomberg
The Bloomberg Professional service is the source of real-time and
historical financial news and information for central banks, investment
institutions, commercial banks, government offices and agencies, law firms,
corporations and news organizations in over 150 countries.
(For more information, please visit www.bloomberg.com)
260 261
NANPU INTERCHANGE, SHANGHAI
Writing KEN SCHEPT
Photography CECILIE ØSTERGREN
& PAUL REIFFER
www.brandz.com

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23% BRAND VALUE APPRECIATION

in-market factors (such as promotions or

Technology Technology Home Appliances Technology Airlines

PetroChina China Southern Airlines

#: Top 100 Rank

NEWCOMER BRANDS #:$: Brand

+57% +47% +46%

$1.4 Bil. $1.5 Bil.

THE BRANDZ™ THOUGHT LEADERSHIP

260 / The BrandZ™ Brand Valuation Contacts

REPORT DETAILS BRAND

BrandZ™ China Top 100 Stock Portfolio

SUPERIOR SHAREHOLDER RETURNS BrandZ™ China Brand Contribution Portfolio

Top Line Results

HEADLINES... EDUCATION GROWTH

BRAND VALUE CHANGE $683,887

CHINA 100 OUTPERFORMS

MORE BRAND CHURN

CHINA TOP 100 GROWTH

TECH AND RETAIL

Telecom Providers 3 (3 SOE) 3 (3 SOE)

28% rate for the China Top 100 indicates

16% 16% 15% 19% how competitive the Chinese

Technology Retail Banks Telecom Providers Oil & Gas

Five-Year Findings Brand Implications

BRAND POWER SUSTAINED

BRAND VALUE CHANGE:

124 Economic change disrupted the

Cross Category Trends

PURSUIT OF INSPIRES SHOPPERS

Cross Category Trends

INCREASES ECOSYSTEMS ENGULF

Cross Category Trends

ACTIONS GAIN INSIGHT

Most Chinese brands still are

Economy, Demographics, and Connectivity CONNECTIVITY

9.6 million sq. km. 209 million

Internet Users on Mobile 1

China India Brazil US Russia UK

7.3 6.8 6.6

Source: Kantar Worldpanel

PENETRATION LEADS TO The positive end to 2017 reversed

GREATER MARKET SHARE

Average time spent

Internet Banking 69%

Source: Kantar Worldpanel (52 weeks ending March 2017)

FMCG SPENDING GROWS RAPIDLY MOST ONLINE GROCERY

CERTAIN SECTORS 2018, when it forecasts spending

Source: GroupM This Year Next Year December 2017 TV Magazines

…INNOVATION BUILDS DIFFERENCE… …AND INNOVATION STRENGTHENS GLOBAL COMPETITIVENESS

Low Innovation Level

Source: BrandZ™ / Kantar Millward Brown

Source: BrandZ™ / Kantar Millward Brown

120 Less Price-Driven Categories More Price-Driven Categories

…AND BRAND OWNERSHIP MATTERS LESS

2014 2014 2014

122 106 115

2018 2018 2018

104 103 100

Source: BrandZ™ / Kantar Millward Brown

MARKET- BUT BRANDING,

APPRECIATION BRAND IMPLICATIONS

MARKET-DRIVEN BRANDS RISE RAPIDLY IN VALUE… … AND MARKET-DRIVEN