Looking for the secret to China’s most valuable brands? Look no further than the Chinese government.
State-owned enterprises dominate the Chinese brand landscape, according to a new report from research agency Millward Brown, which analyzed financial information of 400 listed companies’ brands and paired data with a survey of 35,000 consumers. Of the top 50 Chinese brands identified in the report, nearly a third were owned by SOEs. More telling, state-owned brands accounted for an estimated 70-75% of the $280 billion total combined value of the top 50, the report said.
China's Top 10 Brands by Value
A list of the ten most valuable brands in China, according to Millward Brown's recently released "The BrandZ Top 50 Most Valuable Brands in China."
The results of the report, commissioned by marketing firm WPP, confirm that China’s government-backed companies–which face less competition and enjoy more favorable policies–have a leg up in their sectors and are using it to build some of the nation’s strongest, most resonating images in the minds of Chinese consumers.
Topping the list is a company that rides around in the pockets and purses of hundreds of millions of consumers: China Mobile. As the world’s largest mobile carrier by subscribers (570 million at the end of September), the telecommunications firm scored a brand value of $56 billion, according to Millward Brown. The company spends an estimated $700 million a year on advertising, according to WPP.
Seven other state giants carved out their spots in the top 10. They include a string of financial and insurance powerhouses: the Industrial and Commercial Bank of China, Bank of China, China Construction Bank, China Life Insurance, and the Agricultural Bank of China—ranked 2nd through 6th, respectively–plus Ping An Insurance at number 10. PetroChina, serving up gasoline to a country of new drivers, ranked seventh. Combined, these companies spend around $1.3 billion on marketing services each year, says WPP.
While still lacking recognition outside their home country, China’s top brands are gaining in ground on the worldwide scene. In an earlier 2010 Millward Brown study of global brands (pdf), seven of the top 100 were Chinese, up from five the year before and one in 2006. O
Read more at The Wall Street Journal
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