China top country for brand value growth

China saw more brand value growth over the past decade than any other country, according to the latest Brand Finance China 500 2020 report.

The country’s impressive portfolio of high-performing brands claimed nine spots among the top 10 brands with the largest increase in brand value over the past 10 years, leading to a 1,100 percent increase in the combined brand value of Chinese brands in the Brand Finance Global 500 ranking of the world’s most valuable brands – from US$111 billion in 2010 to US$1,334 billion in 2020.

This was by far faster than brand value growth recorded by brands from any other country, with, for instance, the United States seeing a 177 percent increase and Japan a 94 percent rise, and nearly eight times faster than the overall growth of brand value within the Brand Finance Global 500 ranking at 143 percent.

At the same time, looking beyond the global landscape and directly at the domestic Brand Finance China 500 ranking, the value of China’s top 100 brands has increased by 751 percent over the past decade – from US$175 billion in 2010 to US$1,486 billion in 2020.

The combined value of the top 500 Chinese brands stands at an even more impressive US$1,862 billion, up from US$1,810 billion last year.

The number and value of Chinese brands offering products and services abroad has also increased over the past year.

David Haigh, CEO of Brand Finance, said: “Valuable brands are the foundation of a successful modern economy, and China’s conscious effort to develop and grow both domestic and international brands, will undoubtedly help the country through the COVID-19 pandemic and the economic fallout that will follow.

“We are likely to see a drop in brand value of at least US$1 trillion across the globe next year, but the headway made by Chinese businesses over the past decade will certainly cushion what could otherwise have been a heavy blow.” 

Alibaba.com boasts the largest increase in brand value globally – up by 4,029 percent to US$18.8 billion, and claiming 22nd spot in the Brand Finance China 500 2020 ranking.

Other Chinese tech brands also feature among the world’s top 10 fastest growing, with NetEase seeing a 2,995 percent growth over the past decade and Tencent (QQ) close behind with a 2,310 percent increase.

Industrial and Commercial Bank of China retains top spot as the nation’s most valuable brand, with its brand value breaking US$80 billion mark.

It is also the world’s most valuable banking brand.

China’s banks have been affected by the now-curtailed trade war with the US and there have been concerns about big lenders being forced to relax their underwriting policies to stimulate the country’s economy.

However, banking remains the country’s most valuable sector. With 79 brands in the Brand Finance China 500 2020 ranking, the banking industry accounts for 23 percent of the country’s total brand value.