Retail and Technology
Two categories lead
A closer look at the retail and technology categories reveals some of the details driving the rapid brand value rise in these categories, which were primarily responsible for disrupting the brand and category landscape during this Decade of Transformation.
Retail in China is a multifaceted story about disruption, consolidation, and growth. In just four years, between 2016 and 2020, the number of brands in the category declined from eight to six, while total category value increased 208 percent, outpacing the BrandZ™ China Top 100, which increased 90 percent.
This BrandZ™ analysis begins in 2016 to show the impact of the Alibaba, which entered the 2015 BrandZ™ China Top 100, following the brand’s IPO. During this period, offline retail declined 54 percent to a value of only $1.2 billion in 2020, while online retail expanded 220 percent in value to $193.1 billion. The pie chart of this change looks like a voracious Pacman named Alibaba gobbling up enormous value.
The technology story is about expansion and innovation, both by internet and device brands. Between 2014 and 2020, the number of technology brands in the BrandZ™ China Top 100 more than doubled, increasing from seven to 15.. And the value of the technology category increased 310 percent.
The composition of the technology category evolved over the past six years, as more technology device brands entered the Top 100, balancing the domination by internet brands, particularly Tencent and Baidu. Among the technology device brands that entered the category were producers of mobile phones, drones, and robotic devices, including brands such as Xiaomi, UBTECH, and DJI. In addition, enterprise solutions brand YonYou entered the BrandZ China Top 100. With the presence of this technology consultancy, the China Top 100 technology category more closely resembles the Global Top 100 technology category.