Millward Brown, the global research firm, has published its definitive annual BrandZ list of China’s most valuable brands – essential reading for Sinophiles (and indeed for anyone with an interest in what’s happening in the world’s second largest economy).
In Beijing, the leaders of Prime Minister David Cameron’s trade mission to China were given a sneak preview of one of the marketing world’s most fascinating and revealing studies.
Now in its fourth year, the WPP-commissioned survey for the first time documents the leading 100 brands rather than the top 50. You can read the full report here, but the top ten are:
- China Mobile – $61.4bn
- ICBC (Industrial & Commercial Bank of China) – $39.7bn
- Tencent – $33.9bn
- China Construction Bank – $25.5bn
- Baidu – $20bn
- Agricultural Bank of China – $19.3bn
- Bank of China – $13.6bn
- PetroChina – $13.4bn
- Sinopec – $13.1bn
- China Life – $12.7bn
These companies are among the biggest in the world, with a combined brand value of more than 0 billion, but most in the West know little or nothing about them (yet).
The report is absorbing both in itself and in what it tells us about the unprecedented industrial revolution that has taken place in China over the last 20 years or so. Here are five things to emphasize:
- Lesson 1: Technology, telecoms, and banking brands dominate in China.
- Seven out of the top ten brands in China are financial institutions, tech companies, or telecom providers.
- Banks have the highest collective brand value at $114 billion, followed by telcos at $74 billion, and tech businesses at $60 billion.
- The dominance of these sectors is driven by China’s industrial revolution, leading to significant financial, social, and behavioral changes.
- Lesson 2: Chinese tech businesses are already on par with global giants.
- Baidu, a Chinese search engine, processes over five billion daily search queries, comparable to Google’s global figure.
- Tencent’s WeChat messaging service, launched only two years ago, has over 400 million users and surpasses Facebook in revenues and profits.
- China’s tech sector is still growing, and with more than half the population yet to go online, the digital explosion is just beginning.
- Lesson 3: Chinese tech companies are entering the financial services industry.
- Companies like Baidu are moving into the territory of banks by offering financial services through platforms like Baidu Wallet.
- Tech companies are becoming a significant threat to traditional banks by offering loans and payment systems.
- The convenience and scale of tech companies may lead to the disintermediation of traditional banks, shifting banking to mobile platforms.
- Lesson 4: Mobile usage in China is massive.
- China Mobile, with 750 million subscribers, is the world’s largest mobile provider and tops the BrandZ list with a value of $61 billion.
- Mobile has overtaken desktop as the primary means of accessing the web in China, with three-quarters of internet users accessing it via mobile devices.
- With over 400 million smartphones potentially becoming a tipping point for mobile advertising, China’s mobile market presents a significant opportunity for marketers.
- Lesson 5: Chinese business stereotypes are outdated.
- The perception that Chinese companies are only good at replicating existing business models or stealing intellectual property is outdated.
- Chinese companies are often more innovative in digital, social, and mobile trends, as shown by the presence of fast-growing tech and telecom companies in the BrandZ rankings.
- Companies like Xiaomi are forging their own paths, incorporating customer feedback, and challenging Western assumptions about Chinese business practices.
Overall, these insights highlight China’s rapid growth and technological advancements in the financial, tech, and telecom sectors, as well as its evolving role as a global business disruptor. Chinese companies are showing strong potential to compete on the global stage, offering unique and innovative products and services.
(With inputs from WPP, a world leader in advertising and marketing services)