Chinese brands weather market's economic uncertainties

Chinese brands have weathered the economic uncertainties of the consumer market with the top brands still maintaining a strong foothold, the latest Kantar BrandZ China Top 100 ranking shows.

The combined value of China's top 100 most valuable brands now stands at US$968 billion, with Tencent, Moutai and Alibaba the top three on the list.

Total brand value saw a drop of 4 percent from a year ago, after two consecutive years of double-digit declines, indicating the potential for recovery and further growth. The decrease compares with a drop of 18.8 percent in 2023, and the combine brand value is still up 9 percent from that of 2019.

Tencent remains the most valuable brand for the fourth year with brand value worth over US$129 billion, while the top three fastest risers are Huawei, NetEase and Pinduoduo, reflecting the strong resilience of consumer technology and Internet service sector.

"As consumers are eager for fresh experiences and healthier lifestyle, brands can find new opportunities for growth by investing in product innovation, new consumption moments, new customer groups, new geographical locations and new channels," said Doreen Wang, Kantar China CEO and global chair of Kantar BrandZ.

Media and Entertainment is once again the largest category by total brand value with 13 brands making the list.

A total of 36 brands have grown their brand value year-over-year, with 11 brands growing by more than 20 percent.

Huawei saw an impressive 52 percent year-on-year growth of brand value as a result of an innovation-led turnaround for its thriving cloud and digital businesses.

The highest-ranking new entrant is Vivo which is at 34th position with US$5.4 billion worth of brand value.

The calculation was a combination of consumer brand preferences and corporate market valuation based on the stock market performance between February and March this year.

The challenge ahead for most Chinese brands will be to continue to grow their meaningfulness for customers and differentiate features from rival players, rather than focusing on just one attribute while ignoring the other, the report suggests.