Food and Dairy, alcohol, and technology dominate
Brands that score well in Brand Contribution are viewed positively by consumers. The BrandZ™ Brand Contribution metric assesses the extent to which brand alone, independent of financial or market factors, drives purchasing volume and enables a brand to command a price premium.
The Brand Contribution Top 20 come from nine of the 21 categories examined in the 2018 China BrandZ™ Top 100, indicating that it is possible to build strong brands in all sectors of the economy. At the same time, 12 of the Top 20 brands are concentrated in just three categories: food and dairy, alcohol, and technology.
As changing shopping habits and other factors have slowed sales value growth in food and dairy, penetration and brand have become even more critical engines for growth. Three food and dairy brands—Mengniu, Fortune, and Yili—rank in the Brand Contribution Top 5.
When government discouragement of lavish entertaining and gifting began depressing alcohol sales several years ago, brand strength enabled manufacturers to sustain customer loyalty as they developed new strategies. In technology, brand becomes even more important as the category becomes more competitive. Baidu and Tencent Rank No. 2 and No. 3 in Brand Contribution.
Brand Contribution is not about size. Tencent, the No. 1 brand in the BrandZ™ China Top 100 is in the Brand Contribution Top 20, but so is the hotel brand Hanting, No 82. And heritage is not necessarily a factor either, as both Tong Ren Tang, a traditional Chinese medicine established in 1669 is in the Brand Contribution Top 20, along with iQiyi, an online video platform started in 2010.
Brand Contribution is a about consistency. All but four of the Brand Contribution Top 20 appeared in last year’s list. Brand Contribution is expressed on a scale of one to five, five being highest. (For complete details, please see the BrandZ™ Valuation Methodology).