HURUN REPORT RELEASES MOST VALUABLE CHINESE BRANDS LIST
EMBARGO: 16th May 2007 Beijing-time 0600hrs
- 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
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.
