Chinese domestic brands post strong earnings growth
Chinese brands once again reaffirmed their resilience as top performers, recording a 57 percent jump in total brand value to a combined US$1.56 trillion, according to the latest BrandZ China Top 100 list.
Tencent eclipsed Alibaba with US$280 billion of value with a whopping 85 percent increase. Alibaba and Moutai took the other two spots in the the top brands.
"High-quality and sustainable development will be the core of brand-building in the future, along with the shift of focus from a high speed when it comes to economic and social development," said Kantar China President and Global Chair of BrandZ Doreen Wang.
Short-video sites Douyin and Kuaishou are new arrivals in the top 10 ranking as consumer technology has effected profound changes in work and life. The sites are among a total of 17 newcomers to the list. Others include food & beverage brands Nongfu Spring and Haitian.
Over one-fifth of the top 100 performers more than doubled their brand equity amid strong rebounds across the board thanks to a post-pandemic explosive jump in consumer spending, especially in digital services.
The BrandZ report assessed brands by how they contribute to the companies' financial performance coupled with their market value. The ranking was compiled according to data as of April this year.
Meanwhile, fashion retailers including beauty, jewelry, and apparel vendors posted much stronger revenues as domestic demand showed strength in the consumer goods sector.
Local fashion chain retailers enhanced their positions and occupied six out of the top 20 positions, compared with only four a year ago. The top 100 domestic fashion retailers grossed 782.1 billion yuan, adding 6.7 percent, reporting three consecutive years of sales growth, according to a latest survey by the China Chain Store & Franchise Association.
"Products with Chinese-specific cultural specialties and features contributed to the strong performance of fashion retailers," said deputy president Wu Ruiling at the China Chain Store & Franchise Association.
She pointed out, however, that most of the fashion retailers are still of relatively small business size, with annual sales between 100 million yuan and 190 million yuan, and that requires them to further enhance brand development in the long run.
Beauty and skincare brands make up half of the 10 brands that are the fastest growing in sales. An aspiration for higher life quality has driven up spending, she suggested.
