Professional Documents
Culture Documents
2010-BrandZ Top50 Chinese Brands en - SFLB
2010-BrandZ Top50 Chinese Brands en - SFLB
Contents
1 Introduction
3 Overview
9 Top 50 Chinese Brands
21 WPP Perspectives on China
45 Final Thoughts
47 Lessons from the Global Top 100
51 Methodology
55 WPP Capabilities
With China’s ascent to become
the world’s economic powerhouse
and the Chinese government’s
new focus on brand building,
never has it been so important for
Chinese companies to focus on
their brands.
With this in mind, we are delighted to This report shows that the importance
present the first BrandZ Top 50 Most of branding stretches far beyond
Valuable Chinese Brands Report. consumer packaged goods. The
China Top 50 includes brands from
As well as the ranking of the Top 50 many industry categories, including
Most Valuable Chinese Brands, this technology, banking, pharmaceuticals
report contains invaluable insights and and home appliances. Any business
analysis from WPP experts in China on can create competitive advantage
the progress already made by Chinese through a strong brand.
brands, the lessons to be learned and
the challenges that lie ahead. But brand valuation is more than
just a number. The real objective
Expenditure on brand and marketing is to understand the levers through
should be considered as an which brand value is created in
investment, rather than an overhead. order to identify opportunities to
Strong brands help to protect grow the value of the brand and the
businesses from risk and position them business. WPP, through its operating
for future growth – the ultimate return companies, provides you access
on investment. to all the necessary marketing and
communications services to help you
build a strong and valuable brand.
2
David Roth
WPP
david.roth@wpp.com
报告 From Maker to Marketer
概述 The Creation of “Brand China”
OVERVIEW
“Brand China.”
• Chinese consumers are
Until recently, the term seemed ironic becoming brand conscious.
in a country known for low-cost In 2010, 53 percent of Chinese
manufacturing and efficient distribution, consumers shopped with a short list
a place where marketers from all over of brands compared with only 41
the world went to manufacture the percent in 2006, according to BrandZ
products that established their brands. data. In addition, only 39 percent
reported that their purchase decisions
The competencies learned while were price driven in 2010 compared
developing brands for others have with 47 percent in 2006.
given Chinese manufacturers the tools to
develop their own brands and potentially • Chinese brands are growing
become formidable competitors in the in value. Between 2006 and 2010,
domestic and global markets – the the number of Chinese brands ranked
ultimate irony. among the “BrandZ Top 100 Most
Valuable Global Brands” increased
The evolution of “Brand China” should from one –China Mobile– to six,
not come as a surprise from such a including China Mobile; Baidu, the
diverse, dispersed and complicated search engine; three banks and an oil
nation. The 5,000 years of Chinese and gas company.
history includes both ancient trade along
the Silk Road connecting East and West • China’s economy favors
and modern rejection of the market certain industries. The major
economy, separating East and West. brands, which lead the “China Top 50,”
generally remain state-owned or state-
This study provides a snapshot of controlled enterprises and compete
“Brand China” today. It calculates the within a highly-regulated environment.
brand value of the “China Top 50”
brands at $280 billion. Together with • Entrepreneurial brands are
its companion study, the annual “Top emerging. Chinese brands compete
100 Most Valuable Global Brands,” the effectively with Chinese and Western
“China Top 50” helps predict growth entries in several categories, including
categories, export patterns and changes technology, retail and cars.
in consumer purchase behavior.
Value still defines “Brand China” the
Commissioned by WPP and undertaken way Germany connotes engineering or
by WPP’s Millward Brown Optimor, France, fashion. But “Brand China” is
the study draws upon on BrandZ, the both an old and young, multi-faceted
world’s most comprehensive, customer- and rapidly-evolving idea. As Chinese
focused, brand equity database. It consumers adjust from a period of no
includes commentary and analysis choice to abundant choice, Chinese
by WPP experts. Among the salient brands are finding acceptance at home
findings are: and abroad.
4
1 56,074 3 14 3,545 2
Telecommunications Operator Insurance Provider
2 38,090 2 15 2,449 3
Financial Institution Wuliangye - Liquor Producer
3 22,344 2 16 2,317 3
Financial institution Computer Hardware Manufacturer
4 21,676 2 17 2,307 2
Financial institution Telecommunications Operator
5 18,320 3 18 2,203 2
Insurance Provider Consumer Electronics Retailer
6 16,494 2 19 2,114 1
Financial Institution Car Manufacturer
7 14,223 1 20 2,070 4
Petrochina - Oil and Gas Producer and Distributor Dairy Manufacturer and Distributor
8 12,199 4 21 1,917 3
Internet Service Portal Airline
9 9,715 5 22 1,823 4
Search Engine Wine Producer and Retailer
10 8,443 3 23 1,773 4
Insurance Provider Yili - Dairy Manufacturer and Distributor
11 6,924 2 24 1,445 3
Financial Institution Sportswear Manufacturer
12 5,790 3 25 1,408 3
Liquor Producer Household Appliance Manufacturer
13 5,542 3 26 1,405 3
Airline Processed Meats
10
Ranking Brand Brand Value Brand Ranking Brand Brand Value Brand
(USD millions) Contribution (USD millions) Contribution
27 1,277 3 40 554 3
Yunnan Baiyao - Herbal Remedy Producer Web Portal
28 1,264 2 41 542 3
Telecommunications Operator Tong Ren Tang - Herbal Remedy Producer
29 1,246 3 42 522 4
Household Appliance Manufacturer Bright - Dairy Manufacturer and Distributor
30 1,176 3 43 464 2
Processed Meats Sportswear
31 1,109 3 44 322 2
Casual Wear Producer And Retailer Sportswear
32 1,033 2 45 321 1
Air Conditioning Manufacturer And Retailer Oil and Gas Producer and Distributor
33 1015 1 46 247 2
Bawang - Herbal Hair Care Products Manufacturer Household Appliance Manufacturer
34 890 2 47 185 2
Consumer Electronics Retailer Founder - Computer Hardware Manufacturer
35 864 4 48 177 3
Tsingtao - Beer Producer Huiyuan - Soft Drinks Producer
36 770 4 49 160 3
Yanjing - Beer Producer Fulinmen - Cooking Oil Producer
37 676 4 50 147 4
Pharmaceutical Manufacturer Wine Producer and Retailer
38 657 1
Hua Xia Bank - Financial Institution
2
Headquarter City: Beijing
ICBC Industry: Banking
Year Formed: 1912
1
Brand Value: US $38.1 Billion Kong, Macau and 29 overseas
China Mobile Headquarter City: Beijing countries. The bank's core business
Industry: Banking is commercial banking, including
Year Formed: 1984 corporate banking, personal banking
and financial markets services.
ICBC is the largest bank in the
world measured both by its market
Company: China Mobile capitalization and profit. Positioned
Brand Value: US $56.1 Billion as an accessible bank, ICBC operates
Headquarter City: Beijing more than 16,200 branches across
Industry: Telecom China. The bank first expanded outside
Year Formed: 2000 of China in 1992 and by the end of
5
2009 operated 23 subsidiaries in 20
China Mobile is the largest mobile countries. The bank’s reputation was
service provider in the world. By the China Life
enhanced during the global recession
end of 2009, the number of China Insurance
as it cultivated trust among consumers
Mobile subscribers exceeded 500 by demonstrating relative stability.
million. The company operates three
sub-brands – Gotone, Shenzhouxing,
and M-Zone – positioned for different
Company: China Life Insurance Co.
consumer segments. These brand
4
Brand Value: US $18.3 Billion
variations help China Mobile maintain
China Construction Headquarter City: Beijing
market leadership.
Bank Industry: Insurance
Year Formed: 1999
8
Tencent/QQ
7
Headquarter City: Shenzhen
Industry: Telecom
PetroChina Year Formed: 1998
6
Brand Value: US $14.2 Billion percent share in the Chinese instant
Headquarter City: Beijing messaging market. Better known as
Agricultural Bank simply QQ, the brand differentiates
of China Industry: Oil and Gas
Year Formed: 1999 itself by meeting the communication
and entertainment needs of young
China National Petroleum Corporation Chinese Internet users with products like
(CNPC), parent of PetroChina, is Qzone, a social networking website.
Company: Agricultural Bank of China China's largest oil and gas producer
Brand Value: US $16.5 Billion and supplier. With operations in
Headquarter City: Beijing almost 29 countries, it also is one
Industry: Banking of the world's major oilfield service
Year Formed: 1951 providers and engineering and
construction contractors.
10
As the name suggests, Agricultural
Bank of China has its roots among Ping An
China’s farmers. As these customers
gained wealth, the bank prospered and
today has 320 million retail customers,
2.7 million corporate clients and nearly
24,000 branches and US $1 trillion in
deposits. Government plans to stimulate Company: China Ping An Insurance
9
consumption in rural areas should benefit Brand Value: US $8.4 Billion
the bank, which also is well positioned Baidu Headquarter City: Shenzhen
in industrial districts. Industry: Insurance
Year Formed: 1998
14
China Merchants Bank has grown
from a small bank with just one office
and capital totaling US $14.5 million, China Pacific
to a national bank with net capital Insurance
of US $12.3 billion and more than
600 offices in 40 major cities across
China. Its high-end customer service is
13
extremely popular among the wealthy
Company: China Pacific Insurance
customers, a group that is growing
Air China Group
rapidly in China.
Brand Value: US $3.5 Billion
Headquarter City: Shanghai
Industry: Insurance
Year Formed: 1991
12
Company: Air China China Pacific Insurance belongs to the
Moutai Brand Value: US $5.5 Billion CPIC Group, China's second largest
Headquarter City: Beijing property insurance company and
Industry: Airline third largest life insurance company.
Year Formed: 1998 Through subsidiaries it provides
integrated insurance services,
The national carrier of China, Air including life insurance, property
Company: Kweichow Moutai Co. China promotes itself as the most insurance and reinsurance.
Brand Value: US $5.8 Billion valuable, profitable and internationally
Headquarter City: Renhual City, competitive of China’s airlines. Air
Guizhou Province China merged with the China National
Industry: Liquor Aviation Company and China
Year Formed: Before 1915 Southwest Airlines in 2002, to become
the China Aviation Group Company. It
Moutai is China’s national liquor. became a member of the Star Alliance
Distilled from sorghum grain, the airline-marketing network in December
brand has a distinctive history 2007. Air China carries about 4 .2
because it is produced where the million passengers per month.
country’s liquor culture began more
than 2,000 years ago. Today,
Moutai’s greatest challenge is
maintaining its distinctiveness while
satisfying the needs of the different
segments of Chinese liquor consumers.
This challenge is especially acute in
the high-end market, which is under
pressure from imports.
14
17
China Unicom
16
Lenovo
15
Wuliangye
Company: China United Network
Communications Group
Company: Lenovo Group Brand Value: US $2.3 Billion
Brand Value: US $2.3 Billion Headquarter City: Beijing
Company: Wuliangye Yibin Co. Headquarter City: Beijing Industry: Telecom
Brand Value: US $2.4 Billion Industry: Technology Year Formed: 1994
Headquarter City: Yibin, Sichuan Year Formed: 1984
Province China Unicom is China’s second
Industry: Liquor Lenovo produces personal computers largest mobile operator and the third
Year Formed: 960 to 1279 CE and other technology products for largest in the world. The company was
consumers and small- and medium-size established in 2009 by combining
Wuliangye Liquor, one of China’s businesses. The world’s fourth largest the former China Unicom with China
leading baijiu (rice wine) brands, is PC manufacturer, Lenovo acquired Netcom. While leading the expansion
part of Wuliangye Group, which was IBM’s personal computing division, of 3G services, the company faced
jointly founded in the early 1950s by maker of the ThinkPad, in 2005. The slow consumer acceptance and
several breweries from early in China’s largest seller of PCs in China, with reduced prices to stimulate the market.
history. Wuliangye has emphasized a market share estimated at over 28
this heritage and quality ingredients percent, the company is attempting to
to claim a premium position in the reach the consumers in the country’s
Chinese market. Wuliangye is distilled rural markets with its promise of
out of five grains: red sorghum, rice, improved productivity.
sticky rice, wheat and corn.
18 20
Suning Mengniu
19
BYD
22
Company: Inner Mongolia Yili
Industrial Group
Chang Yu Brand Value: US $1.8 Billion
Headquarter City: Hohhot
Industry: Food
Year Formed: 1993
21
Company: Chang Yu Pioneer Wine Co.
produces a wide variety of products
Brand Value: US $1.8 Billion
China Southern including milk, milk powder, ice cream
Headquarter City: Yantai,
Airlines and yogurt. Although Yili became
Shandong Province
the first Chinese dairy company
Industry: Wine
to gain international food safety
Year Formed: 1892
certification (HACCP), in 2005, the
milk contamination crisis of 2008
Company: China Southern Airlines Co. Over 100 years old, the Chang Yu
impacted the entire dairy industry.
Brand Value: US $1.9 Billion brand leads the Chinese wine category
Headquarter City: Guangzhou and was the first winery in China to be
Industry: Airline listed on the stock exchange. Chang
Yu employs winemaking experts from
25
Year Formed: 1989
around the world and has vineyards in
Of the major three Chinese airlines, France, Italy and New Zealand. These Midea
China Southern operates the largest international connections help support
Southeast Asia network of flights. the Chang Yu brand’s premium, high-
However, it operates the fewest quality image.
international flights overall compared
with Air China and China Eastern.
24
Company: Midea Group
In 2007, China Southern joined the Brand Value: US $1.4 Billion
SkyTeam Alliance, a global airline- Li-Ning Headquarter City: Shun De,
marketing network. In 2009, the Guangdong Province
company became the first China Industry: Household Appliances
mainland airline to open a branch Year Formed: 1981
office in Taiwan.
Midea is one of China’s largest
Company: Li-Ning Sports Goods Co.
manufacturers of household
Brand Value: US $1.4 Billion
appliances. Its core products include
Headquarter City: Beijing
air conditioners, refrigerators and
Industry: Apparel
microwave ovens. Midea connotes
Year Formed: 1990
“beautiful things” in Chinese, which
communicates the company’s brand
Company founder, Li Ning, personifies
promise to consumers. Midea has
the new entrepreneurial China. As
expanded its sales network, especially
young man from Guangxi, one of
in smaller cities so far ignored by
China’s less affluent provinces, and
international brands.
a member of the Zhuang, one of
China’s ethnic minorities, Li joined the
country’s first-ever Olympic team and
came back from the 1984 Games with
six medals. In 1990, as China was
struggling with economic downturn
and international boycotts, he started
a retail business. Last year, Li-Ning
captured 11 percent market share,
trailing Nike and Adidas. Li-Ning is
determined to compete globally.
16
28
China Telecom
27
Company: China Telecommunications
Corp.
Yunnan Baiyao Brand Value: US $1.3 Billion
Headquarter City: Beijing
Industry: Telecom
Year Formed: 2002
26
Company: Yunnan Baiyao Group
telecommunications company with
Brand Value: US $1.3 Billion
China’s largest fixed-line service and
Shuanghui Headquarter City: Kunming,
third largest mobile service. Since
Yunnan Province
2004, China Telecom has transformed
Industry: Herbal Health
from a traditional telecom operator
Year Formed: 1902
into an integrated information
services provider offering voice, data,
The herb BaiYao, which is used for
Company: Henan Shuanghui multimedia and information services.
healing wounds and relieving pain,
Investment and Development Co. Like its competitors, China Telecom
was discovered in Yunnan Province.
Brand Value: US $1.4 Billion struggles to win consumer loyalty.
Doctor Qu Huanzhang developed a
Headquarter City: Luohe, Henan
medication from the herb and named
Province
it as Yunnan Baiyao, in 1902. The
Industry: Food
brand gained fame when Dr. Qu
Year Formed: 1958
donated 30,000 bottles of Yunnan
Baiyao to the Chinese fighting forces
The Shuanghui Group, a large-scale
during the Sino-Japanese War in
meat-processor, is the world’s most
1938. The brand has grown in value
30
valuable meat company stock, with a
by respecting its historical roots while
market value of more than RMB 100
expanding its offering to meet the Yurun
billion (US $15 billion). The company,
needs of today’s consumers with
known for introducing processing
product extensions like toothpaste.
innovations, controls more than half of
the country's high-temperature meat
processing market. The company
is investing significantly to improve
29
Company: China Yurun Food Group
safety standards and make all of its Brand Value: US $1.2 Billion
products traceable. Haier Headquarter City: Nanjing
Industry: Food
Year Formed: 1993
32
Gree
31
Metersbonwe
Company: Bawang International
Holding
Brand Value: US $1.0 Billion
Company: Gree Electronic Appliances
Headquarter City: Guangzhou
Brand Value: US $1.0 Billion
Industry: Herbal Health
Headquarter City: Zhuhai,
Company: Shanghai Metersbonwe Year Formed: 1989
Guangdong Province
Fashion & Accessories Co. Industry: Household Appliances
Brand Value: US $1.1 Billion Bawang is known for its brand of
Year Formed: 1991
Headquarter City: Wenzhou herbal shampoos, which claims the
Industry: Apparel Chinese herbal formulation slows
Gree is one of the world's largest air
Year Formed: 1995 male baldness. The company is
conditioning companies. Vertically
expanding its product portfolio,
integrated, it sells the products it makes
Metersbonwe is China’s leading targeting consumers seeking a natural
in company-owned stores and through
manufacturer and retailer of casual approach to health using Chinese
distributors across China. Gree has
wear targeted to 18-to-25-year-olds. herbal medicine. Driven by increased
been the Number 1 air conditioning
Metersbonwe successfully appeals domestic demand for health-conscious
company in China for the past 15
to lower-income customers in smaller products, the company also is
years. The company currently enjoys a
cities with the Metersbonwe brand diversifying into herbal drinks and
27 percent market share. Gree aspires
and competes with Zara and H&M herbal household cleaning products.
to become as well known globally as it
in first-tier cities with its ME&CITY In April 2010, the company launched
is today in China and hopes to capture
brand. While focusing on design its first herbal drink product, Bawang
35 percent of the overseas market in
and marketing, with about 4,000 Herbal Tea.
the next decade.
stores located throughout China,
the company outsources much
manufacturing and logistics.
34
Gome
35
Tsingtao
36
Yanjing
37
999
Company: Tsingtao Brewery Co.
Brand Value: US $864 Million
Headquarter City: Qingdao,
Company: Beijing Yan Jing Beer Co.
Shandong Province
Brand Value: US $770 Million
Industry: Beer
Headquarter City: Beijing
Year Formed: 1903 Company: China Resources Sanjiu
Industry: Beer
Year Formed: 1980 Medical and Pharmaceutical Co.
Tsingtao Beer is one of the oldest Brand Value: US $676 Million
established brands in China. Headquarter City: Shenzhen
Yanjing Beer is positioned as a natural,
Founded by German brewers, the Industry: Pharmaceuticals
healthy, refreshing and a fast-growing
brand continues to emphasize its Year Formed: 1991
domestic brand. It uses natural mineral
international roots. The Tsingtao
water that comes from the Beijing
beer product line includes seven As the most famous pharmaceutical
YanShan Mountains. The brand enjoys
distinct products that are targeted by brand in China, 999 is seen as a
nationwide market share of about 12
price and taste at different market trusted manufacturer of both Western
percent, which increases dramatically
segments. While the brand’s long and traditional Chinese medicines. The
in certain geographic areas, such as its
heritage reinforces its premium company offers both generic drugs
home market of Beijing, where market
image, it also makes the brand seem and over-the-counter products. It was
share reaches 80 percent. Yanjing
less trendy than imports that appeal among the first Chinese brands to
operates the biggest brewery in Asia.
to younger drinkers. To reach this employ a celebrity spokesperson.
audience, Tsingtao invests in sports
sponsorships that include the NBA
and the Olympics.
39
Snow
38 40
Hua Xia Bank Sina.com
41
Tong Ren Tang Company: Bright Dairy & Food Co.
Brand Value: US $522 Million
Headquarter City: Shanghai
Industry: Food
Year Formed: 1952
Company: Beijing Tong Ren Tang Bright is the third largest dairy brand
Brand Value: US $542 Million in China with a product assortment
Headquarter City: Beijing that includes fresh milk, yoghurt,
Industry: Herbal Health cheese, milk powder and juice.
Year Formed: 1669 Freshness requirements generally
restrict suppliers to regional markets.
Established in 1669, by a court Bright is strong in Shanghai and
physician in the early years of the eastern China where it faces
Qing Dynasty, Tong Ren Tang has increasing competition from Mengniu
and Yili.
45
benefited from this heritage and today
is the largest producer of traditional
Sinopec
Chinese medicine. The company
focuses as well on modern pharmacy,
retail and medical services. It operates
over 800 drug stores, predominantly
in northeast China. The brand also is
44
gaining a reputation worldwide. Company: Sinopec Group
361° Brand Value: US $321 Million
Headquarter City: Beijing
Industry: Oil and Gas
Year Formed: 2000
43
Sinopec is China's largest producer
Company: 361° Co.
Anta and supplier of refined oil products,
Brand Value: US $322 Million
including gasoline, diesel and jet fuel.
Headquarter City: Quanzhou,
It is a major producer of petrochemical
Fujian Province
products, such as synthetic resin,
Industry: Apparel
synthetic fiber, synthetic rubber and
Year Formed: 2003
chemical fertilizer. The company
Company: Anta Sports Products is listed on both domestic and
The 361° Company is a vertically
Brand Value: US $464 Million international stock exchanges.
integrated designer, manufacturer and
Headquarter City: JinJiang, FuJian
distributor of shoes and sportswear.
Province
It operates through 30 exclusive
Industry: Apparel
distributors that supervise 3,500
Year Formed: 1991
authorized dealers with 7,000 retail
outlets throughout China. As a result of
Anta manufactures and markets
this network, 361° enjoys prominence
sportswear for basketball, tennis
in China’s medium-size and small cities.
and running. As Chinese consumers
The company developed from the Bieke
buy more casual shoes and clothing,
Shoe Co., founded in 1994.
the company continues to expand
and now operates over 7,800 retail
stores throughout China. It sponsors
many high-profile athletes including
international women’s tennis player
Jelena Jankovi and plans to add
more player brand representatives to
help raise its overseas profile.
20
48
Huiyuan
47
Company: Beijing Huiyuan Food and
Founder Drink Co.
Brand Value: US $177 Million
Headquarter City: Beijing
Industry: Food
Year Formed: 1992
46
Company: Founder Technology Group
Hisense The leading Chinese juice brand,
Brand Value: US $185 Million
Huiyuan has a 45 percent share of the
Headquarter City: Beijing
domestic fruit juice market and a 42
Industry: Technology
percent share of the nectar beverage
Year Formed: 1986
market. The company exports to 30
countries. Huiyan operates more
Founder is one of the largest
Company: Hisense Electric Co. than 30 factories across China and
conglomerates in China. It has started
Brand Value: US $247 Million maintains four million square meters
or acquired more than 30 businesses
Headquarter City: Qingdao of orchards. Huiyuan produces 500
in various industries since its formation
Industry: Household Appliances food and drink lines. It is especially
more than 20 years ago. Founder
Year Formed: 1969 strong in the 100-percent juice
Group now includes China's second
category. Huiyuan launched a new
largest personal computer company,
Hisense is China’s market share product,"Guozhiguole," in 2010, a
one of China's largest software
leader in TV sales. Based on that carbonated juice targeted at young
companies, leading businesses in IT
success, the company has expanded consumers ages 15-to-25.
solutions and consumer electronics
into multimedia, home appliances, manufacturing, several pharmaceutical
telecommunications, real estate and companies and two Chinese securities
services. The company hopes to brokerage and investment banking
become the world's leading supplier of firms. Founder also has developed
flat-screen televisions, but must balance significant franchises in other industries
the price-driven priorities of the domestic such as healthcare, financial services
market with the quality demands of the and real estate.
export business. Hisense sells products
under five brand names including
its own and also produces for other
brand marketers as an OEM (Original
Equipment Manufacturer).
50
Great Wall
49
Fulinmen
Company: COFCO
Brand Value: US $147 Million
Headquarter City: Beijing
Company: COFCO Industry: Wine
Brand Value: US $160 Million Year Formed: 1983
Headquarter City: Beijing
Industry: Food Great Wall produces wine. Its wide
Year Formed: 1993 distribution and variety of price points
have made grape wine increasingly
Marketed by the agribusiness giant more accessible to Chinese consumers.
COFCO, Fulinmen is the second-largest Great Wall reinforced awareness
cooking oil brand in China. Fulinmen of the brand and its premium image
has educated consumers about the through sponsorships of major events,
importance of safety and health in such as the 2008 Beijing Olympic
cooking oil, successfully establishing a Games and the 2010 Shanghai Expo.
brand position as "Fulinmen, healthy Great Wall is a brand of COFCO, the
for the whole family." agribusiness conglomerate.
Becoming Global Competitors
How and How Quickly?
Definitions first
First, it’s very important to define
terms. Many Chinese companies will
likely invest in American companies
(or brands) given the massive decline
in asset values in the United States
and Europe. For example, Geely, one
of China’s leading car manufacturers
has acquired Volvo from Ford,
although most observers believe the
purchase was more a vanity project
than strategic imperative. But what
do we mean when we say “better
establish and develop” brands?
We are asking whether Chinese
corporations have intentions to
promote their own brands in foreign
markets. And, more specifically,
we are asking whether any are in
a position to compete at a price
premium directly against established
Tom Doctoroff brands in those countries, sustained
JWT North Asia Area Director, and
by robust brand equity, price
Greater China CEO
premiums and consumer loyalty, in
tom.doctoroff@jwt.com
Europe, America and Japan.
Medium-sized stars
The brands that stand a chance in the
medium term will be the ones known
as more than simply big Chinese
trademarks. Again, this requires
innovation, a process that has barely
begun. China Merchants Bank,
Becoming a World Leader Through
Chinese Creativity:
Winning in China and
Going Global
Bessie Lee
Chinese companies have a resource
coveted by companies the world
over. They have the largest and most
prosperous market on earth. Chinese
companies also have something else
that companies throughout the rest
of the world do not possess, even
in their wildest dreams, a thorough
understanding of the vast market that
is China. However, we’ve observed
multinational companies entering
China and getting brilliant results year
after year.
Others 3%
Beverages is one example: Wanglaoji
is a type of herbal Chinese tea with
a unique sales stance: “Worried
about excessive internal heat? Drink
Wanglaoji!” Herbal Liang tea is a
unique herbal medicine drink from
Does claiming and stressing that
the Guangdong region, and the
a brand is Chinese encourage
“excessive internal heat” idea is a
consumers to buy its products? The
concept from traditional Chinese
answer is: not really. Unlike their
medicine. This market tactic of using In 2010, WPP and Millward Brown
East Asian cousins in South Korea
the ‘health drink’ concept to combat launched the BrandZ™ Top 50 Most
and Japan, Chinese consumers are
unhealthy soft drinks has proven to Valuable Chinese Brands ranking, the
only relatively nationalistic, and are
be a success. In 2009, the latest first such attempt to assess the value
unlikely to blindly purchase a certain
AC Nielsen data showed that in the of Chinese brands. These brands owe
brand just because it is Chinese. The
canned beverage market, “red can” their success not merely to China’s
same study discovered that for the
Wanglaoji had already overtaken enormous market, but also to the
majority of industries, less than one
Coca-Cola and Pepsi to become importance that they place on quality,
third of Chinese consumers prioritized
number one in the Chinese market. service and innovation, as well as their
the selection of Chinese brands over
The impact of the rise of Chinese close relationship with consumers.
foreign ones. Even for extremely
culture is also not limited to the
well-localized beer, food, clothing, or
Chinese region. In other countries, BrandZ used the “BrandDynamics
financial services brands, only half of
China enjoys a richly colorful image. Pyramid” to describe the stages of
all consumers made “buying Chinese”
Outsiders see China as a mysterious the relationship between consumers
a priority. Therefore, the Chinese
country with a wealth of Oriental and the brand. Since its launch in
brand concept itself does not ensure
charm and a long historical tradition. 1998, BrandZ has tracked and
the success of a Chinese brand. The
China has numerous unique cultural researched more than 2,000 brands
success of the brand depends more
resources, such as martial arts, the in 40 industries across China and
on its ability to communicate with the
Great Wall, the Terracotta warriors, interviewed more than 200,000
consumer and meet their demands.
Chinese characters, the Shanghai Chinese consumers. The model is
Bund, and more. Chinese brands divided into five main levels, based on
The rise of Chinese culture is an
should consider the best way to changes in the emotional relationship:
opportunity for Chinese brands.
position themselves within the target Presence, Relevance, Performance,
Compared to foreign brands, Chinese
market and to establish a colorful Advantage, and Bonding. People
brands generally possess a price
brand whose name is more valuable generally purchase a brand that
advantage. They also incorporate
than the product. they feel they have a bond with.
cultural characteristics which they
share with Chinese consumers. As They purchase 10 times more of
China’s international status continues those brands than of brands whose
to rise, traditional Chinese customs
and concepts are once again
revealing their power. Wanglaoji
Bonding 5 7 -2
Three Key Words:
Advantage 28 32 -4
Quality
performance 33 37 -4 Safety
Relevance 42 42 0 Consistency
Presence 56 57 0
38
Corporate Earnings
Branded Earnings
Data Sources
54
Brand Multiple
What is the growth potential of the
brand-driven earnings?
Cristiana Pearson
Millward Brown Optimor
Cristiana.Pearson@millwardbrown.com
TB Song
Chairman for Greater China
tbsong@wpp.com
Scott Spirit
Chief Strategy Officer
sspirit@wpp.com
Belinda Rabano
Corporate Communications
brabano@wpp.com