Chinese brands gain on rivals

Chinese brands gain on rivals

Thursday, May 22, 2014 – 09:17

China Daily/Asia News Network

CHINA – The overall value of Chinese brands is rising but not reaching global levels. That signals they need internationalization, according to the 2014 BrandZ Top 100 ranking.

Eleven Chinese brands, including those from Tencent Holding Ltd, Baidu Inc and China Life Insurance Co, were listed in the ranking by London-based research agency Millward Brown. Its report was released in Beijing on Wednesday.

Millward Brown gave the brands a combined value of $280 billion. That compares with their top-ranked 100 brands, valued at $2.9 trillion. In 2013, China’s national liquor brand Moutai was included.

Chinese social network and Internet portal Tencent emerged as the fastest-growing brand in the world, almost doubling its value to $54 billion since Millward Brown’s last report. It overtook China Mobile as the most valuable Asian brand. “The big story here is that a market-driven Chinese brand is now at the top, rather than a State-owned enterprise that might have benefited from being a monopoly,” said Deepender Rana, managing director of Millward Brown Greater China.

Rana said China continues to provide the largest representation from Asia.

The country’s brands should still not be complacent about the need to continuously invest in their names.

“Apart from technology brands, other brands saw significant fluctuations,” Rana said. There is a need for the big State-owned enterprise brands to become more market-oriented and for Chinese brands to go abroad to become truly global.”

This is reflected in China Mobile Ltd’s decline of 10 per cent in brand value and China Construction Bank Corp’s drop of 7 per cent.

Chinese Internet brands, focusing on rising mobile payments, are clamoring to grow rapidly, innovate and leapfrog the West. For example, China’s leading Internet brands, such as Tencent and Alibaba Group Holding Ltd, offered people the chance to purchase and exchange red packets of money online. Chinese traditionally exchange them face-to-face for holiday gift giving.

Wang Xing, head of branding at Millward Brown China, said Chinese brands began to lead the wave of innovation in 2012 after a long period following in the footsteps of global giants from 2000 to 2010.

“Authentic global Internet technology brands will be concentrated in the United States and China,” said Wang.

Globally, Millward Brown’s report said Google overtook Apple to become the world’s most valuable global brand, worth $159 billion.

“This year’s index highlights the end of the recession, with a strong recovery in valuations,” David Roth, CEO of The Store, WPP, a British-based advertising company, said.


About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (, the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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