World Brand Lab released China’s 500 most valuable brands

NEW YORK, July 26. 2022 (GLOBE NEWSWIRE) — The “2022 China’s Most Valuable Brands” list (19th Edition), exclusively compiled by World Brand Lab, was released on July 26, 2022 in Beijing. State Grid topped the list with a brand value of RMB 601.52 billion. Industrial and Commercial Bank of China (536.93 billion RMB), Haier (473.97 billion RMB), Tencent (457.24 billion RMB) and China Life (452.54 billion RMB) also occupy the five first in the list. These brands have entered the category of world-class brands. Management gurus from Harvard, Yale and Oxford attended the World Brand Summit and gave speeches online. They discussed the topic of Influence and momentum: how to rebuild the brand ecosystem with guests there.

In 2022, the total value of China’s 500 most valuable brands is RMB 30,972.81 billion, up 11.03 from last year. Steve WoolgarPresident of Global Brand Lab and Emeritus Professor of Marketing at University of Oxfordsaid: “Brands are the image of a country. I hope more people around the world can experience China’s stories through Chinese brands. Over the past 16 years, I have witnessed the rapid growth of Chinese brands, some of which already have strong global influence. These brands include State Grid, Haier, Sinochem Group, China Resources, China Southern Power Grid, China Huadian Corporation, Wuliangye, Tsingtao Brewery, Beidahuang Group, XCMG, Hengli Group, GCL power Group, etc.

This is the 19th year that World Brand Lab has compiled a Chinese brand report. The entry threshold in 2004 was only 500 million RMB, while the average value of the top 500 brands was 4.94 billion RMB. In 2022, the entry threshold increased to RMB 3.17 billion; the average value of the top 500 brands is over RMB 61.95 billion, an increase of 1,955.98%.

According to the analysis of the World Brand Lab, the competitive strength of a region mainly depends on its comparative advantages, which are directly affected by brand advantages. The brand is an important symbol of the development of a region. The regional distribution of the “500 Most Valuable Chinese Brands” places Beijing in first place this year with 86 brands selected. Guangdong and Shandong have 84 and 46 brands respectively, ranking second and third. The brands in the list can be divided into national and global brands based on the scope of influence of these selected brands. There are 438 nationally influenced brands on the list, representing 87.60% of the total, and 62 brands (12.20%) with global influence, which is a slight increase from last year.

Although the pandemic has not halted the overall upward trend in the value of Chinese brands, the number of brands in sectors such as aviation, travel services, textiles and apparel, real estate and retail trade declined significantly from a year ago, while sectors with inelastic demand such as automotive, chemicals and agriculture increased. The list of “China’s 500 Most Valuable Brands in 2022” contains brands from 26 industries, including food and beverage, light industry, building materials, media, textile and apparel, medical and machinery. The food and beverage industry remains the sector with the most brands on the list, numbering 84 and representing 16.80% of the list. Industries ranked second to fifth are light manufacturing (49), building materials (38), media (34) and information technology (32). A total of 69 Chinese brands were worth more than RMB 100 billion this year, while last year the number was 57.

The topic of today’s summit is “Influence and Momentum: How to Rebuild the Brand Ecosystem”. Pierre Chandonprofessor of marketing at INSEAD, indicated that brand influence and momentum are important for brand image. Brand momentum allows customers to carry over some of the goodwill from one product to another and enables the brand to be resilient and continue to be successful year after year. And to build a resilient brand ecosystem, first, brands shouldn’t promise what they can’t deliver; second, they must be authentic and deliver on the brand promise; third, they must evolve without betraying brand identity.

A joint team from World Brand Lab and Superfinance has identified a growing correlation between brand value and ESG performance. Elie Ofekprofessor of marketing at Harvard Business School, concluded that environmental factors, including customers, competition, company, collaborators and context are constantly changing. Brands must be ready to rebuild, reshape and reinvent their position. The main building blocks are the “(C)RED” framework, which stands for “relevant, sustainable and differentiated”. Complementing the RED model, “C” stands for “credible,” which means brands must be authentic and credible in order to generate trust. Therefore, rebuilding a (C)RED brand helps influence customers and build momentum.

Ravi Dar, professor of marketing at Yale School of Management, noted that inflation is one of the challenges facing global economies today, especially in Europe and the United States. In the context of COVID-era inflation, on the one hand, consumer perceptions of the market can be biased by media coverage; on the other hand, consumer behavior is also changing. First, consumers will put more effort into planning and thus reduce impulse purchases. But at the same time, consumers are more willing to try new products. Second, brands can take advantage of the fact that consumers are less responsive to “smaller product sizes” than to “price increases”. Third, installment payments are more popular during times of inflation.

Martin Kilduffprofessor of organizations and innovation at University College London (UCL), said that in a social network, rivalry is essentially about competing for allies who provide resources to improve reputation. Social networks are channels through which resources such as information, materials and employees circulate. Social networks are also prisms through which reputation is discerned. But in fact, people’s perception of social media is skewed and the connections between people, brands and organizations are often distorted.

Haisen Dingfounder and CEO of Global Executive Group and Global Brand Lab, pointed out that the brand, as the centralized embodiment of an enterprise’s core competitiveness, is not only an intangible asset but also a complex ecosystem. A brand ecosystem is how a brand creates a perfect global chain through its various interrelated products and services, from producers and integrators to consumers, all working together around a brand’s philosophy and reputation. Faced with the uncertain global COVID epidemic and geopolitical risks, Chinese brands urgently need to build a virtuous brand ecosystem in the process of globalization.

Teacher Steve WoolgarPresident of Global Brand Lab, concluded that over the past 10 years, Chinese manufacturing has made impressive achievements in competing in the global market. However, in order to capture and consolidate the high-end market, Chinese brands need to create a world-class brand ecosystem that engages stakeholders in all Chinese brand building scenarios.

World Brand Lab is an international brand equity research institute wholly owned by World Executive Group, the world’s leading digital strategy and business consultancy. World Brand Lab was co-founded on the initiative of Nobel laureate Robert Mundell, who served as its first president. World Brand Lab experts and consultants come from Harvard University, Yale University, MIT, Columbia University, University of Oxford, University of Cambridge, INSEAD and other leading universities around the world. The results of his research have become an important basis for the valuation of intangible assets in the merger and acquisition process of many companies.

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Global Brand Lab
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http://www.worldbrandlab.com

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Image 1: Figure 1: Top 10 “500 Most Valuable Chinese Brands of 2022” (Billion RMB)

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  • Figure 1: Top 10 “500 Most Valuable Chinese Brands of 2022” (RMB Billion)

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