China Insights

Volatile market shakes ranking, 9 brands enter Global Top 100

Martin Guo

Editor-in-Chief, Kantar China Insights

Brands 12.06.2019 / 15:12

Cloud and sea full

Illustrating the volatility of the global brand landscape, nine brands entered the BrandZ™ Global Top 100 as newcomers this year, the greatest number of newcomers since 2015.

The make-up of the newcomers also demonstrates some of the drivers of volatility. Six of the nine newcomer brands come from Asia, including four Chinese brands. Six brands are in technology or technology-related categories, and several brands operate as ecosystems.

Two of the Chinese brands, Didi Chuxing and Meituan, are online-to-offline service providers. In the transport category, Didi Chuxing is a ride-sharing app, similar to Uber and Lyft, with a broader strategy to diversify across automobile services, including lease and rental, car sharing, fuelling stations, and aftercare. Meituan, a lifestyle platform, is China’s largest online booking site for services, which include reserving a restaurant, renting a bike, buying movie tickets, ordering food for delivery, or making travel arrangements. Both Didi

Chuxing and Meituan are ecosystem brands, meaning they operate diverse, interdependent, synergistic businesses.

The Chinese newcomer Haier recently redefined its home appliance business as an ecosystem, adapting to a market in which an increasing number of consumers are looking for smart systems rather than individual products. To strengthen its position in Europe, where it has long been active, Haier purchased the Italian brand Candy. Haier also is investing in the GE appliances business in the US, which it acquired in 2016.

The fourth Chinese brand, Xiaomi, makes smart phones that offer relatively affordable function and style. Xiaomi is the market leader in India and is rapidly expanding throughout Europe.

The two Indian newcomers are the state-owned insurance group LIC, a highly trusted brand in India, and Tata Consultancy Services, a global technology consultancy. The other technology newcomers are Xbox, the gaming platform owned by Microsoft, which is investing into developing more gaming content to strengthen its Xbox business, and Dell Technologies.

Dell Technologies had been in the Global Top 100 until 2010, and in the technology category ranking until the company went private in 2013. Although it remains private, Dell Technologies’ financials are publicly available, which makes the brand eligible for inclusion in the Global Top 100. Similarly, Chanel, which has appeared in the BrandZ™ luxury ranking, now also ranks in the BrandZ™ Global Top 100 because the company has revealed its complete financial statements.

EN Nine Newcomers

Newcomers outperform ranking on key metrics

It is becoming more difficult for brands to rise into the BrandZ™ Global Top 100, as the global brand landscape becomes more volatile and competitive.

In 2006, the brand value threshold for ranking in the Global Top 100 was US$4.2 billion. In the 2019 BrandZ™ Global Top 100, the brand ranking No. 100 has a value of US$13.4 billion, a 219% increase over 2006.

EN Rising Threshold For Top 100

In many drivers of value—the key BrandZ™ metrics of brand strength— the average scores for newcomers are higher than the average scores for the rest of the Top 100 brands.

In Salience (coming to mind at the time of consideration), for example, newcomers score 146 compared with a score of 124 for the rest of the Top 100. An average score is 100.

Similarly, newcomers score higher on the question “Interested to see what they do next,” a measurement of potential that informs a key challenge for brands now entering the ranking — remaining in the ranking.

EN Newcomers Vs Rest Of Top 100

Source: Kantar, WPP

Editor's notes

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