China 2015: OVERVIEW| Eligibility criteria and definitions
Brands included in the BrandZTM Top 100 Most Valuable Chinese Brands meet four eligibility criteria. Included brands are:
- Created by a mainland Chinese enterprise;
- Owned by a publicly traded enterprise;
- Report positive earnings.
- Financial brands derive at least 20 percent of earnings from retail banking.
Brand contribution is a BrandZTM measurement of a brand’s uniqueness in the mind of the consumer and the impact of brand alone, without any other factors, on future earnings. Brand contribution is expressed with a scale of 1-to-5, 5 highest.
Brand power is a BrandZTM measurement of a brand’s competitive position in its category. It roughly correlates with volume share. Brand power is a BrandZTM component of brand equity, which is the consumer predisposition to choose one brand over another.
Meaningful, Different, Salient
These are the three BrandZTM components of brand equity: Meaningful, Different and Salient. Success on these components predisposes consumers to choose a brand and pay a premium for it.
MEANINGFUL: Consumers feel an affinity for the brand or think it meets their needs.
DIFFERENT: The brand feels different from other brands or sets trends for its category.
SALIENT: The brand comes to mind quickly and readily when activated by ideas relating to category purchase.
This acronym stands for State Owned Enterprise, companies in which China’s central government, or a local jurisdiction, has an ownership stake. To better understand the dynamics of these brands, BrandZTM divides them into two categories:
STRATEGIC SOES: These brands are in categories, such as banking or oil and gas, which are instrumental to development of the national economy. The government tasks these brands with implementing policy. Examples: Bank of China, Sinopec.
COMPETITIVE SOES: These are brands in consumer-facing categories, such as alcohol or food and dairy. Building brand equity is an important success determinant. Examples: Moutai, Mengniu.
The SOEs included in the BrandZTM Top 100 Most Valuable Chinese Brands are publicly traded.
Market-driven brands are privately owned and responsive to customers and marketplace forces.