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China 2015: OVERVIEW| Eligibility criteria and definitions

ELIGIBILITY CRITERIA

Brands included in the BrandZTM Top 100 Most Valuable Chinese Brands meet four eligibility criteria. Included brands are: 

  1. Created by a mainland Chinese enterprise; 
  2. Owned by a publicly traded enterprise; 
  3. Report positive earnings. 
  4. Financial brands derive at least 20 percent of earnings from retail banking. 

DEFINITIONS

Brand Contribution

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

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.

SOE

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

Market-driven brands are privately owned and responsive to customers and marketplace forces.