China tech brands on top
Four of China’s top five brands are technology-driven companies. Valuable as the likes of old hands such as Bank of China and PetroChina might still be, they can’t match digitally driven brands such as Tencent, Alibaba and Baidu. In its Top 100 Most Valuable Chinese Brands ranking, BrandZ gives the former top spot with a brand value of $66 billion, ahead of recently IPO-ed Alibaba on almost $60 billion. And those three firms comprise about half of the value of the Top 10 most valuable brands.
“Technology companies have become brand powerhouses, and as a result the technology category has now surpassed financial institutions as the highest value category ($106.9 billion), contributing 23% of the Top 100’s total value,” explains BrandZ.
One major trend is the convergence of technology and retail, with retailers piling into tech as consumers shopping behaviour changes and allying with technology brands to provide digitised products and services, mobile payment solutions and online-to-offline commerce solutions.
Tech will play a big part in Chinese brands’ attempts to make a name for themselves internationally, too. “Success will depend on understanding consumers’ behaviour and needs, integrating technology to improve the brand experience and playing on China’s unique identity to offer meaningful points of differentiation,” says Doreen Wang, global head of BrandZ, Millward Brown.