A new list of the 100 most valuable global brands has been released by BrandZ ranking, with US tech giant Google at the top and Apple chasing number one. It’s the first time that two Chinese companies made it into the top 10.
The report showed that Amazon has bumped Microsoft from third place. Chinese Tencent was ranked fifth and was followed by Facebook, Visa, McDonald's, Alibaba, and AT&T.
The new ranking demonstrates that Tencent and Alibaba have overcome numerous China-specific hurdles to become global powerhouses, according to Doreen Wang, head of BrandZ.
“The challenges facing Chinese brands are by no means small,” she said.
“Limited brand awareness in international markets, a lack of trust due to historic quality issues, and reluctance by Chinese brands to invest in impactful global advertising campaigns has put them at a disadvantage with their more established competitors.”
Wang explained that the rise of China and savvy young consumers has created opportunities for smart entrepreneurs.
“Attitudes are changing, particularly among younger consumers who are falling in love with Chinese brands,” she said. “While penetration into US markets may still be at a preliminary stage for both brands, other regions are embracing them.”
Shenzhen-based Tencent broke into the annual BrandZ top 10 ranking in 2017. The firm’s brand value is currently estimated at $179 billion, up 65 percent compared to last year.
Jack Ma's Alibaba, which claimed the ninth spot, has seen its brand value nearly double to $113 billion. The e-commerce giant beat expectations in the fourth quarter, with revenue hitting almost $10 billion. Alibaba has recently started diversifying its activities, expanding further into fields such as mobile payments and cloud computing. It seeks to fend off rising competition from rivals such as Tencent.
Alibaba is gaining ground in Brazil, Chile and other Latin American countries, where its online marketplace AliExpress “is rapidly becoming the leading e-commerce platform,” said Wang. The company also has a strong presence in countries such as Israel, Spain and South Korea.
Tencent has been gaining greater recognition in south Asian markets such as Thailand and Singapore, she added.
The BrandZ ranking is published annually by WPP group and Kantar Millward Brown. Google has been at the top of the ranking for eight of the past 12 years. Its brand is currently valued at $302 billion, up 23 percent from last year.
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