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50 Most Valuable Brands From China

Submitted by sic on Fri, 10/12/2007 - 14:02.

I find that Hurun Report is doing a fantastic job in China, the equivalent of what Forbes Magazine is doing in the US.

This time, Hurun Report analysed the most valuable brands from China, and of course financial and telecom industries share the top spots. Here are some interesting facts:

* China Mobile brand, worth US$37 billion, tops the list, followed by ICBC and Bank of China
* Seven of top ten Most Valuable Chinese Brands are financial services
* Stock market hike key driver for increase in brand equity
* 29 of the top fifty brands are state-owned

Rank Brand Brand Value US$m % of Market Cap Industry Head Office
1 China Mobile 37,000 20% telecom Beijing
2 ICBC 21,000 9% financial services Beijing
3 Bank of China 15,500 9% financial services Beijing
4 CCB 11,000 8% financial services Beijing
5 China Life 9,000 6% financial services Beijing
6 Agricultural Bank of China 8,000 6% financial services Beijing
7 China Telecom 5,000 12% telecom Beijing
8 Huawei 3,640 14% telecom Guangdong
9 China Merchants Bank 3,500 10% financial services Guangdong
10 Bank of Communications 3,450 7% financial services Shanghai
11 Ping An 3,180 7% financial services Guangdong
12 Wuliangye 3,100 25% alcohol Sichuan
13 Moutai 2,600 23% alcohol Guizhou
13 China Citic Bank 2,600 5% financial services Beijing
15 China Unicom 2,550 14% telecom Beijing
16 Wahaha 1,870 24% beverages Zhejiang
17 China Netcom 1,690 10% telecom Beijing
18 CCTV 1,660 15% media Beijing
19 Suning 1,620 25% retailer Jiangsu
20 Mengniu 1,330 30% beverages Inner Mongolia
21 Haier 1,300 29% consumer electronics Shandong
22 GoMe 1,210 25% retailer Beijing
23 Minsheng Bank 1,010 6% financial services Beijing
24 China Industrial Bank 970 5% financial services Fujian
24 Air China 970 10% air transportation Beijing
26 Li-ning 940 40% apparel Beijing
27 Quanjude 820 45% restaurants Beijing
28 QQ 810 14% internet services Guangdong
29 Lenovo 790 25% computer Beijing
30 Pudong Development Bank 780 5% financial services Shanghai
31 Vanke 750 8% real estate Guangdong
32 Tsingtao 700 25% alcohol Shandong
32 Alibaba 700 14% internet services Zhejiang
34 Country Garden 650 6% real estate Guangdong
35 ZTE 580 10% telecom Guangdong
36 Midea 530 23% consumer electronics Guangdong
37 Synear 490 30% food Henan
38 Yili 480 24% beverages Inner Mongolia
39 Zhonghua 440 20% tobacco Shanghai
40 Huiyuan 420 24% beverages Beijing
40 Changyu 420 13% alcohol Shandong
42 Yurun 400 23% food Jiangsu
42 Gree 400 20% consumer electronics Guangdong
42 China Overseas Property 400 4% real estate Guangdong
45 TCL 390 23% consumer electronics Guangdong
45 Bosideng 390 30% apparel Jiangsu
47 China Southern Air 360 10% air transportation Guangdong
47 Bright Dairy & Food 360 24% beverages Shanghai
49 Hisense 350 20% consumer electronics Shandong
49 Changhong 350 20% consumer electronics Sichuan

Methodology
The ‘Hurun Report 2007 Most Valuable Chinese Brands’ measures the brand equity
of China’s top fifty brands. Hurun Report’s ranking takes into account a
combination of financial data – to calculate the present value of the earnings
that the brand is expected to generate in the future – and consumer research. It
is the first ranking to include both listed and non-listed companies. As part of
its continued focus into China’s private sector, Hurun Report expanded its
research to produce a list of the fifty Most Valuable Privately-Held Chinese
Brands, brands that have been built up without the strong background of the
government.

“Chinese companies are beginning to realise the contribution to
their corporate wealth of their intangible assets, especially their brands,”
says Rupert Hoogewerf, CEO of Hurun Report. “The dramatic rise in the value of
Chinese brands is an indicator of the growing influence of the middle class.”

Consumer perception of a brand is a key input in determining brand value because
brands are a combination of business performance, product delivery, clarity of
positioning, and leadership. Hurun Report measured consumer perception by a
combination of an online survey of 709 Chinese consumers’ brand preferences
carried out by GMI, a global market research software company, and the number of
times a brand was searched for on Baidu, the leading Chinese language Internet
search provider, over a nine month period between June 30, 2006 and April 18,
2007. Hurun Report ranked the average of the results of these two consumer
surveys on a basis of 5 (high brand recognition) to 1 (least recognition).


As the distribution networks of companies mature, so the equity of a brand
begins to come into its own. In a market with a “middle-class” – earning at
least US$2,500 per year – of between one hundred and three hundred million
people, a figure that is expected to grow to between 400 and 600 million people
by 2015, expect to see the value of these Chinese brands continue to grow in
leaps and bounds.

Financial services stood out as the industry with the most brands on the list
(12), followed by telecoms (6), white goods (6), drinks (5), alcohol (4) and
property (3).

Hurun Report thanks its partners Baidu and GMI.



Sector Analysis of Most Valuable Brands

Financial Services
Banks and insurance brands have seen their brand values increase fastest this
year, as they expand their distribution networks and begin to compete with the
foreign banks. Many consumers find it hard to differentiate financial products,
which is where the impact of the brand comes in. Recent listing in HK and
Shanghai, together with the full weight of the government’s backing, have
strengthened the trust Chinese consumers have in their financial services.

2007 Rank Brand Brand value as % of market cap Consumer survey score Private
company
2 ICBC 9% 4.5 　
3 Bank of China 9% 4.5 　
4 China Construction Bank 8% 4 　
5 China Life 6% 3 　
6 Agricultural Bank of China 6% 3 　
9 China Merchants Bank 10% 5 　
10 Bank of Communications 7% 3.5 　
11 Ping An 7% 3.5 Y
13 China Citic Bank 5% 2.5 　
23 Minsheng Bank 6% 3 Y
24 China Industrial Bank 5% 2.5 　
30 Pudong Development Bank 5% 2.5 　



Reference point: Citigroup brand was valued by BusinessWeek/Interbrand at 9% of
its market cap.





Telecoms

2007 Rank Brand Brand value as % of market cap Consumer survey score Private
company
1 China&Mobile 20% 5 　
7 China&Telecom 12% 3 　
8 Huawei 14% 3.5 Y
15 China&Unicom 14% 3.5 　
17 China&Netcom 10% 2.5 　
35 ZTE 10% 2.5 Y
* BYD 8% 2 Y
* UTStarcom 10% 2.5 Y



Reference point: Cisco was valued by BusinessWeek/Interbrand at 14% of its
market cap.

* Not ranked for main list. Ranked on Hurun Report Most Valuable Privately-Held
Chinese Brands list.





White goods

2007 Rank Brand Brand value as % of market cap Consumer survey score Private
company
21 Haier 29% 5 Y
36 Midea 23% 4 Y
42 Gree 20% 3.5 　
45 TCL 23% 4 Y
49 Hisense 20% 3.5 　
49 Changhong 20% 3.5 　
* Galanz 17% 3 Y



Reference point: Sony brand was valued by BusinessWeek/Interbrand at 27% of its
market cap.

* Not ranked for main list. Ranked on Hurun Report Most Valuable Privately-Held
Chinese Brands list.





Drinks

Danone is currently in a dispute with the local management team of Wahaha over
alleged misuse of the Wahaha brand,

2007 Rank Brand Brand value as % of market cap Consumer survey score Private
company
16 Wahaha 24% 4 Y
20 Mengniu 30% 5 Y
38 Yili 24% 4 　
40 Huiyuan 24% 4 Y
47 Bright Dairy & Food 24% 4 　



Reference point: Coca-Cola brand was valued by BusinessWeek/Interbrand at 64% of
its market cap.




Alcohol

Wuliangye and Moutai led the field in the alcohol brands on the back of a recent
surge of their stock prices.

2007 Rank Brand Brand value as % of market cap Consumer survey score Private
company
12 Wuliangye 25% 5 　
13 Moutai 23% 4.5 　
32 Tsingtao 25% 5 　
40 Changyu 13% 2.5 Y
* Jnc 15% 3 Y
* Jinliufu 13% 2.5 Y



Reference point: Budweiser brand was valued by BusinessWeek/Interbrand at 31% of
its market cap.

* Not ranked for main list. Ranked on Hurun Report Most Valuable Privately-Held
Chinese Brands list.





Real estate

2007 Rank Brand Brand value as % of market cap Consumer survey score Private
company
31 Vanke 8% 5 　
34 Country Garden 6% 3.5 Y
42 China Overseas Property 4% 2.5 　
* Shimao 4% 2.5 Y
* R&F 4% 2.5 Y
* Hengda 5% 3 Y
* Agile 5% 3 Y
* Hopson 4% 2.5 Y
* Greenland 4% 2.5 Y

　



There is no reference brand for property on the BusinessWeek/Interbrand
rankings.

* Not ranked for main list. Ranked on Hurun Report Most Valuable Privately-Held
Chinese Brands list.





Internet

2007 Rank Brand Brand value as % of market cap Consumer survey score Private
company
28 QQ 14% 4.5 Y
32 Alibaba 14% 4.5 Y
* Baidu 15% 5 Y
* Sina 14% 4.5 Y
* NetEase 12% 4 Y
* Ztgame 6% 2 Y
* Ctrip 8% 2.5 Y
* Shanda 6% 2 Y



Reference point: Yahoo! brand was valued by BusinessWeek/Interbrand at 15% of
its market cap, whilst ebay was 18%.

* Not ranked for main list. Ranked on Hurun Report Most Valuable Privately-Held
Chinese Brands list.





Apparels

Li-Ning scored best in the consumer survey. It is also the only brand on the
ranking based on the founder’s name.

2007 Rank Brand Brand value as % of market cap Consumer survey score Private
company
26 Li-ning 40% 5 Y
45 Bosideng 30% 3 Y
* Metersbonwe 32% 4 Y
* Youngor 28% 3.5 Y
* Septwolves 28% 3.5 Y



Reference point: Nike brand was valued by BusinessWeek/Interbrand at 50% of its
market cap.

* Not ranked for main list. Ranked on Hurun Report Most Valuable Privately-Held
Chinese Brands list.





Foods

2007 Rank Brand Brand value as % of market cap Consumer survey score Private
company
37 Synear 30% 4.5 Y
42 Yurun 23% 3.5 Y
* Jinluo 20% 3 Y
* Strong 27% 4 Y



Reference point: Heinz brand was valued by BusinessWeek/Interbrand at 47% of its
market cap.

* Not ranked for main list. Ranked on Hurun Report Most Valuable Privately-Held
Chinese Brands list.





Retailers

2007*Rank Brand Brand value as % of market cap Consumer survey score Private company
19 Suning 25% 5 Y
22 GoMe 25% 5 Y
* Wumart 10% 2 Y



There is no reference brand for retailers on the BusinessWeek/Interbrand
rankings.

* Not ranked for main list. Ranked on Hurun Report Most Valuable Privately-Held
Chinese Brands list.





Background to list

The list of the Most Valuable Chinese Brands has evolved and expanded in scope
these past four years. In 2006 Hurun Report released the first list of the fifty
Most Valuable Brands, but narrowing its scope to privately-held brands only. In
the previous two years, Hurun Report released a list – in partnership with Baidu
– of the one hundred entrepreneurs searched for most frequently on Baidu, an
indicator of their personal brand and influence.



About GMI

GMI (Global Market Insite, Inc.) is the only provider of comprehensive
integrated solutions for global market intelligence for both market research
firms and corporate market research departments at Global 2,000 companies.
Solutions include Net-MR, a suite of software tools to manage and automate
research throughout the project lifecycle, desktop analysis tools, 24/7 service
bureau capabilities, and one of the world’s largest, highly profiled, double
opt-in managed panels, providing reach to six million consumers and spanning
across 200+ countries. In addition, GMI offers high-value, real-time enterprise
feedback solutions for customer, partner and employee programs. Founded in 1999
with world headquarters in Seattle, Wash., GMI has operations on six continents.
In 2006, the company ranked #93 in Inc. Magazine’s Inc. 500, #4 in Deloitte’s
Technology Fast 50 for Washington State and #105 in Deloitte’s Technology Fast
500 for North America. More information is available at www.gmi-mr.com or email
us at info@gmi-mr.com.



About Baidu

Baidu is the leading Chinese language search engine.

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