Tencent and Alibaba continue their momentum and expand the lead in brand value
Shanghai, China (May 31st, 2018) – Leading brand consultancy Interbrand announced Tencent, Alibaba and China Construction Bank as the three most valuable brands in its 2018 Best China Brands Ranking List, with financial services and internet brands sustaining the dominance of the ranking.
The launch event for this year’s Best China Brands was held at the The St. Regis Shanghai Jing’an. More than 20 top-tier media outlets participated in the celebration and together explored the most significant trends affecting brands in China.
Notably claiming the top positions for the fourth year in a row, Tencent and Alibaba continue their fast growth in brand value, extending their lead through double-digit increases in brand value this year. Tencent’s 32% growth in brand value has it placed as the fastest growing brand in this year’s ranking with Alibaba close behind at 27%.
Nikki Lin, Interbrand’s Managing Director of Greater China, commented on this year’s key transformation: “One of the most remarkable trends is that the top performing technology brands are continuing to aid the development of other sectors. Multiple brands are cooperating with the leading technology players to further elevate their offerings, in an effort to better serve their target consumers and better equip themselves for the future.”
In other sectors, tremendous increases in the brand value are observed in Moutai (21%) and Midea (21%) due to their drive of globalization, as well as in the financial sectors for both banking and insurance which make up a significant portion of the top brands list.
GAC Motor also makes its debut this year at #47, with a brand value of CNY 2,869M. Established in 2008, the motor company has since grown in size with over 16,000 employees to date. As GAC Motor plans to expand into other markets, including the US, its performance will definitely be one to watch over the next year.
The total value for the league table increased to CNY 1,768,409M, indicating a 12.5% overall rise from last year’s value. In total 16 brands on the list showed double-digit growth.
For the complete Top 50 rankings, Historical Rankings, and an Interactive Chart of this year’s Best China brands, please click here.
An introduction to Interbrand’s valuation methodology
Interbrand pioneered brand valuation in 1988, and introduced the first brand evaluation methodology to be certified by the ISO 10668 (which outlines requirements for monetary brand valuation). Interbrand’s analytical methodology has been recognized as a tool with special strategic management value.
Interbrand is deeply connected to the Chinese market, and this 11th annual Best Chinese Brands report serves as a platform for the growth of Chinese brands, rooted in its powerful brand valuation methodology. In keeping with global practices, the methodology behind the ranking of China’s 50 most valuable brands relies on financial information independently audited by third parties, as well as extensive consumer research and market data. The report is based on financial information as of the end of 2017 and calculates the brand value based on the brand’s future contribution to business profits. This stable and transparent approach provides a solid basis for the fairness of the final ranking and for the comparability of global and local calendar years.
The ranking is based on three key components that contribute to a brand’s cumulative value:
- The financial performance of the branded products and services
- The role the brand plays in influencing customer choice
- The strength the brand has to command a premium price and secure future earnings
Best China Brands is the most authoritative brand ranking and study of its kind, capturing timely market and brand trends. It has become China’s compass for brand growth in all sectors, as well as an important lens through which brands can examine their own value.