High Brand Contribution bolsters earnings potential
Technology, food and dairy most represented
Brand Contribution is the unique BrandZ™ metric for assessing the most important, yet elusive, aspect of a brand: the impression it makes on the mind of the consumer. Brand Contribution measures the impact of brand alone, without financials or other activation factors.
A high Brand Contribution Index – on a scale of one to five, five being the highest – suggests that a brand is resilient and plays an important role in driving earnings. Brand Contribution is calculated from the ongoing, in-depth, worldwide quantitative BrandZ™ consumer research that distinguishes the BrandZ™ brand valuation methodology and elevates it above all competitors.
All but three of the 2017 BrandZ™ Brand Contribution leaders also appeared last year. This consistency reflects a defining characteristic of Brand Contribution. It accrues over time into a durable force that can stabilize brand value against normal market fluctuations.
Healthcare brands Tong Ren Tang, Jinjiang Inn and Herborist are the newcomers. Nine of the repeating brands moved up at least one rank: Tencent, the Internet giant; the cooking oil Fortune; online portal Sina; Robam, a maker of small household appliances; the baijiu Moutai; Zhong Hua tooth paste; and small appliance maker Supor.
Technology and food and dairy are the most represented categories in the 2017 Brand Contribution Top 20, with four brands apiece. But seven other categories are also represented: alcohol, home appliances, personal care, hotels, education, healthcare, and jewelry retailer. This category diversity indicates the potential for building a strong brand across broad sectors of the economy.
Of the 20 Brand Contribution leaders, only three rank in the Top 10 brands of the BrandZÔ China Top 100, and 12 fall below rank 50, which is not surprising because the lower half of the ranking is populated with many fast growing, market-driven brands, typically strong in Brand Contribution.