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High Brand Contribution helps brands earn a premium

High Brand Contribution helps brands earn a premium

Possibility open to brands of all ages across categories

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 ability for a brand to achieve a premium is especially important in the Chinese market today, where sophisticated customers trade down or up depending on their needs but are prepared to pay a premium price when it is merited.

The Brand Contribution Top 20 come from 10 of the 24 categories examined in the 2019 China BrandZ™ Top 100, indicating that it is possible to build strong brands in all sectors of the economy. In addition, 15 of the brands in the Brand Contribution Top 20 also appeared last year, indicating the sustaining nature of Brand Contribution.

At the same time, five of the brands added to the Brand Contribution for the first time are newcomers this year to the BrandZ™ China Top 100, illustrating that the achievement of high Brand Contribution is not the province of established brands alone.

The brands that ranked in the Brand Contribution Top 20 for the first time are: the lifestyle platforms Ele.me, Meituan, and Dianping; Lufax, a consumer finance brand in peer-to-peer lending; and the technology brand DJI, the world leader in drone manufacturing.

Meanwhile, Mengniu and Yili, the Nos. 1 and 2 brands in Brand Contribution, are both well established in the food and dairy category, which has been under the competitive pricing pressure felt by fast moving consumer goods generally. Product innovation and brand strength helped both Mengniu and Yili rise significantly in value.

Brands that score well in Brand Contribution are viewed positively by consumers. Brand Contribution is expressed on a scale of one to five, five being highest.