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China Daily Website

Chinese companies shifting to new brand of growth

Updated: 2013-12-04 09:49
By Wang Zhuoqiong and Du Xiaoying ( China Daily)

China Mobile Ltd remains the nation's most valuable brand for a fourth year, with a value of $61.4 billion, up 21 percent.

Technology, which was the fastest-growing category in the previous study, continues to rise in brand value, which is up 28 percent.

Brand value increased in 11 categories, including technology, financial institutions, airlines, insurance, and oil and natural gas. But the beverage category declined 6 percent as alcohol and wine brands felt the impact of reduced government spending on entertainment and strong competition from foreign brands.

Wang of Tmall said that the current priority of many Chinese brands, which are still on a steep learning curve, is survival. Branding is second to survival, he said. "It will take a long time for Chinese brands to consider branding in systematic ways."

Lack of experience in brand management also contributes to the gap between Chinese and foreign brands, said Juliet Zhu, a professor of marketing at the Cheung Kong Graduate School of Business.

Success lies in truly understanding consumers' needs and enhancing product quality and service, Zhu said.

"Chinese consumers are very sensitive in pricing and branding," she added. Maintaining consistent quality and keeping brands relevant and memorable by adopting traditional and new media also matter, she said.

The report found that global consumers are more likely to buy Chinese brands in the computer, technology or home appliance categories. Brands such as Lenovo Group Ltd, Air China Ltd and China Eastern Airlines Corp Ltd are already deriving the largest proportion of their revenue from overseas markets.

Chinese home appliances' position in emerging markets is quite strong, said Millward Brown's Wang, adding that Chinese brands planning to go global should consider whether their products are in one of the categories favored by global markets.

 

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