Strong brand equity
drives value increase
Chinese brands still lag in being seen as different
The BrandZ™ China Top 100 score high in a key BrandZ™ metric of brand equity—Power, the consumer disposition to choose a brand over the competition. The Top 100 also score well in another BrandZ™ metric of brand equity—Premium, the consumer disposition to pay a higher price for a brand.
The Top Risers, brands that increased the most in value, scored higher in Power and Premium than the Top 100 overall, clearly demonstrating the correlation between strong brand equity and brand value growth. Significantly, dropout brands, those whose value fell below the threshold of the Top 100, scored much lower in Power and Premium than surviving brands and newcomers.
Three components drive Power and Premium scores: being meaningful (meeting needs in relevant ways), being different (standing out from the competition and setting trends) and being salient (coming to mind easily at the time of consideration).
Over the past six years, the BrandZ™ China Top 100 average score improved in being meaningful and salient. But the BrandZ™ China Top 100 average score did not increase in being different. The average score in difference increased significantly for the Top 10 Risers, however, again demonstrating a link between strong brand equity and brand value growth.
The average BrandZ™ China Top 100 scores in being meaningful, different and salient now resemble the average scores of the Global Top 100. In average difference scores, however, the China Top 100 still lags the Global Top 100.