Interbrand and Forbes Release Best Chinese Brands 2010
(BEIJING) July 6, 2010 — Today, Interbrand and Forbes China issue Best Chinese Brands 2010, of which the top five remain China Mobile, China Life, China Construction Bank, Industrial and Commercial Bank of China and Bank of China.
Tencent and China Pacific Insurance Corporation are listed in Best China Brands for the first time.
The three fastest growing brands in the past three years (2007-2010) are Baidu, Lining and Ping An Group, with the compound annual growth rate at 85%, 60% and 39% separately.
The selected top 50 brands are consistent with Interbrand’s proprietary methodology for valuing brands, taking advantage of financial information from the third party as well as extensive consumer research.
The number of best China brands in 2010 doubles to 50 and the total value of top 25 brands in the list this year increased by 40% since 2007.
The proportion of financial brands in the list decreased to 32% from 40% in 2010. Some brands in categories such as consumer goods, IT and Internet service step into the top 50 list due to their good management of brand assets with Tencent and Maotai into top 10; their success is closely related to the rapid development of China’s Internet economy, the ongoing development of consumer goods market as well as the positive impact of healthy market to brand.
Internet brands such as Tencent, Baidu, Alibaba pay are expanding their industry’s impact on China society, leading reforms of business model in aspects of entertainment, media, etc.
Consumer goods brands, such as Mao Tai, Lining, Tsingtao Brewery are shifting their branding focus to adjusting to customized needs and consumers’ pursuit of healthy life. They make efforts to enhance brand value in a confident and sophisticated way.
The value of brands such as ICBC, China Merchants Bank, and Ping An Group company of China is above the average level thanks to their proactive involvement in competition.
Some leading enterprises’ brand value grows at a fast rate, yet it still comes behind their business. Given China’s fast-paced economy, there exists a large room for the improvement of their brand value.
For Ranking of 50 Best China Brands 2010, please download pdf
About Best China Brands
It is an independent brand value research launched by Interbrand and Forbes China together, conducted by the third party, consistent with Interbrand’s proprietary methodology for valuing brands. Necessary changes are made to adjust to the China market.
1. The brand should have plenty of public financial information strictly audited by the third party and should be confined to a listed company at home and abroad. The assessed revenue is what the company has published.
2. The business of assessed brand should be consumer-oriented.
3. The brand should be able to create EVA and its branding business should be profit based on necessary corporate operation costs.
4. The brand should be China-based.
5. Branding revenues should not be influenced by macro-policies too much. That’s why the research did not include real estate and aviation industry.
How brand value is figured out
Brand value is the NPV of brand’s expected return. There are four steps to figure it out.
Step1： Determine revenues out of brand-related business. We also predict a brand’s future revenues and profits according to investment banks’ research reports. Based on the predictions, we will calculate out brand-related EVA revenue. It reflects on the EVA that brands create for companies, not merely their business revenue.
Step2：Figure out role of the brand, then multiply EVA revenue, and get brand earning.
Step3: Determine brand’s discount rate. Interbrand believes that the brand performance and capability of internal management determines its ability to resist risks in the market in the future, that is, brand strength. Based on brand performance learned from marketing research data, we score 10 indexes. The brand’s discount rate will be figured out after BSS’s digital standardization globally.
Step4： Multiply brand discount rate and brand revenue and to achieve brand value. In essence brand represents financial assets.
For more information:
Founded in 1974, Interbrand is recognized for being at the forefront of the dialogue on brands as business assets. Today, Interbrand is amongst the largest brand consultancies and has grown to include 40 offices in 25 countries. The combination of rigorous strategy and analytics with world-class design creativity help its clients to create and manage brand value in all market dynamics. It is widely respected for its annual study, The Best Global Brands, and creating a broader platform for the discussion on brands in the Webby-award winning website brandchannel.com. For more on Interbrand, visit www.interbrand.com.
About Forbes China
The first issue of Forbes China was published in 2003, and it now has become one of the most influential magazines in China. In April 2009, Forbes Group, the famous publishing and media group authorized Fosun Media to publish Forbes China.
Forbes China pays close attention to Chinese entrepreneurs, exploring driving forces behind wealth: entrepreneurship, friendly environment, innovation in aspects of technology, management, and business model. We report not only winners, but also losers for the time being, demonstrating the eternal charm of investment. Holding the belief that “entrepreneurship is the sharp tool for wealth creation”, Forbes China offers the Chinese elite original ideas and deep analysis about wealth management, ethics and life, in the pursuit of becoming a necessity for the expanding group of elites.
In May, 2010, Forbes China created its website (www.forbeschina.com) in the hope of promoting the localization of innovation and globalization of wealth.