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Some local brands have grown in popularity to lead their respective industries and outshine other brands in the same sector, according to a brand value report released Friday.

Haier, the Chinese appliance giant and valued at 53 billion yuan (US$6.4 billion), was ranked the most valuable Chinese brand in an annual report released by the Beijing Famous-Brand Evaluation Co Ltd.

Following Haier, the next five most valuable brands are Hongtashan, a brand of cigarettes, liquor producers Wuliangye, Lenove for information technology products, automobile maker FAW, and TCL, another appliance producer.

The average sales volume of the 32 brands covered by the report has increased by 20 per cent since 1995 when the report was first issued, and average brand value has increased by 14.7 per cent.

The report said that some brands have begun to dominate certain industries and their gap with secondary industrial brands has widened.

The report said that Chinese companies have become more conscious of their brands, and have pumped lots of money into maintaining quality.

But they paid less attention to brand management, namely, getting more money from brand operations. Taking a stake in a venture by offering its brand would be an example of this.

Jiang Lin, professor at Renmin University of China, said China should set up more brand evaluation and trading agencies.

"As brands will contribute a large part to business and brand-related deals will increase in the future, the government should begin setting up a unified and standardized evaluation system, and an authoritative industrial association,'' Jiang said.

Professional brand trading agencies are expected to emerge as part of a new industry when brand trading will become brisk in the future.

"Franchising, which means doing business or making products under others' brands, and brand purchasing have become big business throughout the world and will be big in China too,'' Jiang said.

Last year, global revenues from brand trading reached US$167 billion.

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