NEW YORK, June 21, 2021 / PRNewswire / – The 2021 “from China The list of the 500 most valuable brands (18th edition), exclusively compiled by World Brand Lab, was published on June 22 in Beijing. This year, State Grid, with a brand value of 557.70 billion RMB, at the top of the annual list, which measures financials, brand strength and consumer behavior. The Industrial and Commercial Bank of China (496.28 billion RMB), Haier (457.53 billion RMB), PetroChina (442.56 billion RMB) and China Life (436.67 billion RMB). These companies have grown into world class brands. The management gurus Harvard, Yale, and Oxford attended the World Brand Summit and delivered online keynotes, where they spoke with guests about how sustainable brands drive business growth.
The total value of from China 500 most valuable brands reached RMB 27,895.32 billion in 2021, up 12.97% compared to last year. Steve woolgar, President of the Academic Committee of World Brand lab and professor emeritus of marketing at the Oxford University, said: “Brands are the image of a country. Hope more people in the world can learn more about from China stories across Chinese brands. Over the past 15 years, I have witnessed the rapid growth of Chinese brands, some of which already have strong global influence. These brands include State Grid, China Life, Haier, Beidahuang, Wuliangye, Tsingtao Brewery, Double Star Group, Zhuyeqing Tea, HBIS Group, Hengli, China Southern Power Grid, XCMG, Snow Beer, JOMOO, Air China, China FAW and China Resources . “
This is the 18th year that World Brand Lab has written a report on the Chinese brand. The entry threshold in 2004 was only 500 million RMB, and the top 500 brands had an average value of 4.94 billion RMB. On the other hand, the entry threshold was 3.07 billion RMB in 2021, with an average value of 55.79 billion RMB, an increase of 1028.69%. According to the analysis carried out by World Brand Lab, the competitive strength of a region depends mainly on its comparative advantages, which are directly affected by the advantages of the brand. Of from China “500 most valuable brands” this year, 91 are based at Beijing. Guangdong and Shandong have the second and third most brands on the list, with 86 and 44 brands, respectively. The brands listed can be classified as national or global depending on their scope of influence. There are 439 national influence brands on the list, representing 87.80% of the total, and 61 (12.20%) global influence, a slight increase from last year.
While the pandemic has not halted the overall upward trend in the value of Chinese brands, the number of brands in industries such as automotive, travel services and media has declined significantly compared to the previous year. last year, as the number of brands in inelastic demand sectors such as food and beverage, finance and agriculture, have increased. The “2021 from China The “500 Most Useful Brands” list contains brands from 26 industries, including food and beverage, light industry, building materials, media, textiles and clothing, medicine and machinery. . The food and beverage industry remains the sector with the most brands on the list, numbering 87 and representing 17.40% of the list. The second to fifth largest sectors are light industry (52), building materials (37), media (33), textiles and clothing (33), and communication and IT (30). In total, 57 Chinese brands have been rated over 100 billion RMB this year, compared to 53 last year.
The theme of this year’s Global Brand Summit was “Sustainable brands drive business growth”. According to a joint study by World Brand Lab and Superfinance, brand value and environmental, social and governance (ESG) scores are positively linked. Dr. Karthik ramanna, professor of business and public policy at the Oxford University, pointed out that in many companies, managing ESG factors is seen as a reporting or compliance exercise rather than a strategic activity. He described five steps that help brands build genuine trust with customers. First, companies should not ignore stakeholder issues. Second, they should try to avoid political problems. Third, they should act on capacity asymmetries. Fourth, they should stay one step ahead.
John Deighton, professor emeritus of business administration at Harvard University, offered advice on how to implement a sustainable branding strategy, emphasizing the need for less marketing and more market making. After examining two industries, textiles and food, Deighton realized that companies waste more than they consume. A product that doesn’t sell is a trivial expense for a brand, but a huge problem for the planet. The solution offered by Professor Deighton is to open up new markets, creating an appetite for recycled clothing, patchwork fabrics, less than perfect fruits, etc., in order to reduce the impact on the brand’s reputation.
Ravi Dhar, professor of marketing at the Yale School of Management, said stakeholder marketing strategies are slowly evolving. Dhar proposed a four-step strategic value creation process: first, identify value drivers for different categories of stakeholders. Second, distinguish “to-do” tasks that are necessary to comply with laws or industry standards from “choose-to-do” opportunities that create sustainable competitive differentiation. Third, companies should try to jointly solve problems that do not concern only one category of stakeholders, but stakeholders at all levels of the company. Finally, companies must put in place new systems and indicators to measure the impact and results of their strategies.
Adi Ignatius, editor-in-chief of Harvard business review, noted that the role of the CEO is changing. Executive leaders now feel the need to think broadly of all their stakeholders, not just their shareholders. As such, the position of CEO becomes more rewarding but also more complex. Even as the role evolves, however, the fundamental attributes of great leaders remain the same. Mr. Ignatius singled out four CEOs as leaders who have created brands of lasting value: Ed catmull from Pixar, Steve Jobs from Apple, Indra Nooyi from PepsiCo and Zhang Ruimin from Haier.
Haisen Ding, founder and CEO of Global Executive Group and World Brand lab, said: “Brands have a direct impact on both sales performance and capital market valuation. Over the past 20 years, one of the most important characteristics of global capital markets is that brand-centric intangibles have overtaken tangible assets in terms of importance From 1975 to 2018, intangible assets as a percentage of the market capitalization of all companies in the S&P 500 increased by 17% ($ 12.00 billion) to 84% (US $ 21.03 trillion). The sustainable growth of the Chinese economy is closely linked to the growth of Chinese brands. Brands influence production and consumption, and ultimately contribute to economic growth. “
Guillaume Mundell, vice-chairman of the advisory board of World Brand lab, added: “Brand awareness reflects, to some extent, national character and national spirit. The sustainability of the brand should benefit everyone involved at all levels of the company.”
World Brand lab is an international brand value research institute, 100% owned by Global Executive Group, world leader in digital strategy and business consulting. World Brand lab was founded on the initiative of Nobel laureate Robert Mundell, who served as its first president. World Brand Lab experts and consultants come from Harvard, Yale, MIT, Oxford, Cambridge, and other top universities in the world. His research results have become an important basis for valuing intangibles in the merger and acquisition process for many companies.
Figure 1: Top 10 of “from China 500 Most Valuable Brands of 2021 “(in billions of RMB)
SOURCE World Brand Lab