China’s brands show incredible resilience amid COVID-19 pandemic challenges: report
Chinese brands have showcased incredible resilience to the challenges presented by the COVID-19 pandemic, the London-based brand valuation consultancy Brand Finance said Tuesday in a report.
In the “Brand Finance China 500 2021 Ranking” report, Brand Finance said the total value of Brand Finance China 500 ranking remains stable year on year despite the pandemic, standing at 1.94 trillion U.S. dollars in 2021.
Brands at the forefront of the nation’s successful response to the health emergency and those powering the transition of consumption online — across the pharma, retail, and media sectors — have performed particularly well and recorded the highest brand value increases, said the report.
Leading fight against the health emergency, pharma sector sees the greatest brand value increase, up staggering 123 percent year-on-year, according to the report.
Banking sector dominates with 85 brands accounting for 22 percent of total brand value in ranking, with the Industrial and Commercial Bank of China (ICBC) once again crowned China’s most valuable brand, said the report.
“Chinese banks have scored extremely well in Brand Finance’s Global Brand Equity Monitor research this year, ranking highly for attributes such as recommendation,” said David Haigh, CEO of Brand Finance.
“This is undoubtedly an effect of China’s management of the COVID-19 pandemic, which has allowed its economy to continue functioning relatively unscathed, allowing space for banks to grow further,” said Haigh.
Meanwhile, brands in the retail sector — and more specifically e-commerce — experienced a surge in demand as consumers turned online following store closures, said the report.
Retail is the second most valuable sector — with 17 brands featuring and accounting for 10 percent of the total brand value — and also the second fastest growing sector, recording a cumulative brand value growth of 54 percent, said the report.
On the regional level, the Guangdong-Hong Kong-Macao Greater Bay Area, a vibrant world-class city cluster in southern China, is home to more top brands than any other region in China with 134 brands represented in the ranking, the report showed.
“Shenzhen and the Greater Bay Area are the perfect location for a discussion about Chinese brands and their development…The city is developing fast and its brands are its best ambassadors,” said Haigh.
Headquartered in London, Brand Finance has offices in more than 20 countries. It conducts more than 5,000 brand valuations each year and publishes nearly 100 reports.