10 newcomers from nine categories reach Top 100
Ten newcomer brands from nine categories appeared in the BrandZ™ Top 100 Most Valuable Chinese Brands 2016. Technology is represented twice. The baby care and soft drinks categories are new to the BrandZ™ China Top 100. These categories also are represented: retail, real estate, personal care, jewelry retailer, airlines, and cars.
They reflect many of the trends shaping the BrandZ™ China Top 100, including the growth of mobile and e-commerce, the increase in overseas business, and the evolution of consumer buying priorities as indicated by the shift towards premium and the willingness to spend money on travel.
The most valuable newcomer, Huawei, entered the BrandZ™ China Top 100 at number seven. Historically, more of a business-to-business brand, the inclusion of Huawei in the BrandZ™ China Top 100 ranking reflects its increasing business-toconsumer presence. The global telecommunications giant, which derives 62 percent of its revenue from outside of China, shipped over 100 million smartphones in 2015, a 44 percent increase. Huawei smartphones are known for ofering quality functionality and design at a more afordable price than Apple or Samsung.
The other new technology entrant, Youku Tudou, ranks 52 in the BrandZ™ China Top 100. An online video entertainment site, Youku Tudou is a combination of Netflix and Hulu with 200 million monthly visitors. Its revenue, derived from both subscribers and advertisers, increased 66 percent. The acquisition of Youku Tudou by Alibaba was expected to happen early in 2016.
Online retailer JD.com entered the BrandZ™ China Top 100 at number 15, after a strong year when annual active customer accounts increased 59 percent. The brand grew sales at a faster rate than rival Alibaba, in part because of its partnership with online portal Tencent, which enables users of Tencent’s WeChat messaging service to seamlessly move between social networking and e-commerce. Known for reliable products and delivery, JD.com competed efectively with Alibaba’s Tmall and Taobao Marketplace sites.
In the real estate category, the Wanda brand appeared for the first time in the BrandZ™ China Top 100, at rank 31. The brand is owned by Dalian Wanda Commercial Properties Company Ltd., a private conglomerate that develops multiuse commercial complexes in which ofce buildings and luxury hotels drive customer trafc to the companion shopping centers. The group also operates cinemas and is aggressively diversifying into other fields, such as sports.
Herborist, a personal care brand, and number 69 in the BrandZ™ China Top 100, has successfully marketed the appeal of natural ingredients and traditional Chinese medicine. The brand reaches international consumers through e-commerce and a physical presence in Europe in the French-owned Sephora stores and in Germany’s Douglas chain.
The growth of the baby care category, and diapers specifically, drove the brand value growth of Anerle, number 76 in the BrandZ™ China Top 100. Urban parents are willing to pay a premium for disposable diapers, a fairly new category in China, dominated by international brands and enjoying tremendous e-commerce penetration and sales growth.
Mizone is a bottled water brand with functional benefits, marketed by Danone, the French food and dairy giant. At a time when sales of many FMCG products have moderated, bottled water remains relatively strong and able to command a price premium. Mizone has efectively reached its target audience of young people with social media and online gaming.
Spring Airlines appeared in the BrandZ™ China Top 100 for the first time, at rank 98. An entrepreneurial brand formed in 2004 to provide more Chinese consumers with afordable air travel, the low-cost carrier floated a successful IPO in January 2015, to fund accelerated expansion and meet rising demand.
State-owned Changan, one of China’s leading car brands, entered the BrandZ™ China Top 100 at number 99. It maintains joint ventures with overseas brands such as Ford and Peugeot. The presence of Changan in the BrandZ™ China Top 100 indicates the growing influence of Chinese brand cars in a category still dominated by imports.