China’s tech giants Tencent and Alibaba remain among the top 10 brands in the world, according to the 2018 BrandZ Top 100 Most Valuable Global Brands list released by WPP and Kantar Millward Brown on Tuesday.
A total of 14 Chinese companies are now in the top-100 brand list. E-commerce platform JD and express delivery company SF were both ranked for the first time.
The ranking has the highest credibility in reflecting brand position. It is concluded based on surveys from more than 3 million consumers, as well as financial and business performance reviews of each brand.
“It’s not surprising for Chinese brands to have made such remarkable achievements given the increased national power and exploding market over the past 40 years of reform and opening up,” He Maochun, director of the Research Center of Economy and Diplomacy in Tsinghua University, told Global Times on May 29.
According to the report issued by Kantar Millward Brown, this year witnessed the fastest growth of non-U.S. brands, and subversive Chinese brands have made a huge impact. The value of Chinese brands is up 47% since last year, twice the figure of their U.S. counterparts, the report added.
An article published on Tuesday by UK magazine Marketing Week said that Alibaba saw a 92 percent rise in brand value, rising five positions since 2017 into ninth place; fellow retailer JD increased brand value by 94 percent putting it at 59th on the list, while alcohol brand Moutai’s brand value jumped 89 percent taking it to 34th. These brands are the three fastest risers this year, the magazine added.
On Tuesday, CNN also pointed out that Jack Ma’s Alibaba has seen its brand value nearly double to $113 billion as the e-commerce company expands further into fields such as mobile payments and cloud computing.
Shenzhen-based Tencent broke into the annual BrandZ top 10 in 2017, going from strength to strength over the past year. It now holds fifth place behind Google, Apple, Amazon and Microsoft – but above Facebook – with a brand value of $179 billion, up 65 percent compared to last year. It boasts a market capitalization of $490 billion, making it worth more than America’s most valuable bank, JPMorgan Chase.
Doreen Wang, the head of BrandZ, told CNN that the rise of China and savvy young consumers has created opportunities for smart entrepreneurs. More and more young Chinese consumers are falling in love with domestic brands, she explained. “While entering into US markets may still be at a preliminary stage for both brands, other regions are embracing them,” she said.